Let’s find out about shared office, which is becoming the hub of a new business ecosystem.

These days we are seeing more and more of digital nomads who work with laptops and smartphones, unbound by location. Naturally, shared offices took place. Shared office refers to using the whole bulding or a part of it by dividing it for renters who pay monthly rent to use it as office space. Shared office market is growing as there are more start ups and companies that focus on work flexibility. According to a reseach conducted by a global commercial real estate service corporation Cushman & Wakefield, the number of shared offices in cities grew from 2 in 2016 to 13 in the first half of 2019. The rent area ratio also grew from 1.9% in 2017 to 4.2% this year. Why are shared offices on the rise?

Economic moving in cost, creating new network

Shared office provides reasonable usage fee and consulting service for business owners with limited capital.

Shared office is convenient for business owners with limited capital. You can get your office in the center of transportation and business focused areas and can just pay monthly rent without deposit. These days shared offices not only provide work space but also operate prorgams that support start up renters. They operate in various ways, including arranging mentor groups to assist areas like patent, PR, security, etc. which are essential in the beginning stage of your business and intrduce meetings with socially renowned personnel, etc.

Shared office renters build networks through regular get togethers.

You can reduce the number of mistakes you make in the early stages of busines and it is also economic; but the biggest advantage of shared office is that you can create networks. As there are many businesses renting out the office, you can create networks with those you normally would never get to meet, and get professional help from them. This is actually cited as the reason many shared office renters wish to continue their services. Frequently meeting up with shared office renters and building networks often leads to getting business partners.

Specialized shared offices

Recently, shared offices specialized for certain specific areas are being opened (Photography by. Alma homepage).

Shared office, which was a space for new business owners, is now tkaking a different form. Specialized shared offices are opening up as retners working for a specific industry are getting together. This is quite clear abroad; shared office ‘Alma’, in New York, is a shared office for psychotherapists, counselers, and well being specialists. Here the professional histories of renters are listed on the homepage so that the patients can find out such information easily. Renters are not only provided with a business space but also can be introduced to patients, which leads to high satisfaction level of the share office. It is used by professionals with ample experience who had difficulties finding a clinic or therapy spcae due to high rent.

Shared offices specialized for certain occupations are advantageous in that they are equipped with the necessary infrastructure for those specific works (Photography by. Extra Slice homepage).

LA has a shared office for writers. It’s equipped with the working environment necessary for writers such as the deadline room with soundproof walls, library, printing room, etc. Recently it built a podcat recording studio as audio books are on the rise. There are also shared offices for engineers and game developes who often work through the night; ‘Extra Slice’ and ‘Glitch City’ in Washington D.C. They open the space 24 hours for the renting members and are also equipped with sleeping rooms and kitchen facilities for them to cook simple dishes.

There is a shared office for fashion industry people not only abroad but also in Korea.

There are shared offices for certain specific areas in Korea as well. Musinsa studio is a fashion specialized shared office. It’s located in Dongdaemun, the center of fashion and trasportation, and it is equipped with fashion specific spaces including photoshoot studio, pattern room, repair room, packging zone, etc., It also provides fashion industry consulting, and those working in the filed can get help from it upon encountering difficulties during work. Also, in consideration of how it sends out many packages every day, reasonable delivery fee was also specially set up.

There are now shared offices for specialized areas including fashion, architecture, design, etc (Photography by A Lounge Facebook).

A Lounge is an architecture specialized shared office. Architecture offices, building audio, inerior, smart home, and many other architecture related businesses are renting space here. They can rent out architecture model room and meeting room and are provided with services including construction mediation, achitecture material discount, and student internship mediation. Space is equipped with related infrastructure to assist architecture related start ups to stand on their own.

Hub of a new business ecosystem

Creative creators are creating a new business ecosystem in shared offices.

Introduction of various types of shared offices is not a simple creation of a new form of office; it’s about creating a new business ecosystem. Creative people workign in diverse areas are getting together and developing synergy. Big corporates are also taking notice and are getting into the shared office business.

In Hyundai Card Studio Black, members get business insight through gatherings and get new inspiration through expert lectures.

Hyundai Card opened a shared office ‘Studio Black’ in 2017. It was to provide optium work space for craetors, start ups and profesionals in varous ares. Studio Black supports getting insight for ideas, techonolgy, etc. through member gatherings and carries out collaborations. Hyundai Card assists various types of programs so that the Studio Black members can get new business ideas; they provide regular advice to the membes based on Hyundai Card’s expertise on branding, design, marketing, etc. They also hold gatherings for renting memebrs to share work know hows and lectures by experts and influeners to provide new inspiration to the members.

Studio Black members carry out various collaborations with Hyundai Card.

Studio Black renters also actively carry out collaboration with Hyundai Card. Among them, there is a case that actually created a product. Product design company FRAME BY saw the Studio Black membership card and was inspired to create a “card integrated phone case design.” He planned the product and collaborated with Hyundai Card Design Lab, received design advise and patent application, signed a contract with Hyundai Card, and launched the product.

Shared office market is expected to grow further.

Studio Black is also creating precedence of renting members and Hyundai Card collaborations by holding the December Demo Day every year. AI based schedule management solution corporate KonoLabs was chosen for its collaboration idea they suggested to Hyundai Card management and staff on the 2018 Demo Day and currently is proceeding a pilot test for Hyundai Card company intranet which implemented KonoLabs’ AI personal assistant solution.

Now shared office is not simply renting out a space. Now it’s evolving to a place where people working in various areas are getting together in one place to share ideas and are creating a new business ecosystem. According to KT Economics & Management Research Institute, Korea’s shared office market is expected grow from 60 billion KRW in 2017 to 770 billion KRW in 2022, which is an annual growth rate of 64%. We hope many new busineses will be discovered with the growth of shared office market and bring about much vitality onto ecoonmic growth.