Co-working spaces is very popular among the millennials these days. Their affordability makes them more attractive. Furnished & ready office does fuels productivity and creativity. However, like all businesses co-working spaces also face certain challenges. 

Data Privacy

The very objective of co-working spaces is to bring together variety of professionals, and work parallely. Yet, in this age of technology many businesses, especially large enterprises, have concerns about the integrity of their data.

With cyber-technology growing in leaps and bounds, businesses are worried about the safety of their information that their employees working out of co-working spaces are working on. Like, using a shared wifi network can prone their system to severe threat of data-theft. In addition, with different people working together, the businesses are wary of information leaks. It is a legitimate concern that factors in the decision making of our clients when they are trying to decide on a space to work from. It is quite a challenge to ensure data privacy, and co-working spaces must endeavor to provide a safe network to our clients to remedy this concern of theirs.


Providing basic amenities such as free wifi and unlimited access to refreshments is no longer enough. Untill and unless the operators are on their toes reinventing how they work, refurbishing interior design, reimagining strategies, the second-user of the space often gets space which literally looks like used. The need that the co-working spaces should constantly innovate is very high but hardly seen relevant from the perspective of an operator. 


Spaces are an asset which need to be insured. This is an additional burden which can neither be transferred to the clients nor to the landlords. The first is usually because of the large turnover rate of the clients, and transferring their responsibility onto the landlord would only result in pushing upward the rental prices. Say a fire mishap broke up in the building who will take the responsibility of the loss?

Long term rentals, short term clients base

Co-working spaces sign long term rental leases with property owners for the sake of stability. The client base, on the other hand, sees a large churn-rate,  because of the nature of the co-working segment. The advantage of the co-working space to provide freedom in terms of choosing workspaces contradicts with their motto of getting long-term clientele leading to demand and supply mismatch.

Rental vs Ownership model

With the rental prices rising, mostly due to competition, the client has to take a decision as to which model would be more economical in the long term. Long term rentals were quite popular, but eventually companies felt that with the ownership model the operators have unlimited flexibility to innovate. Co-working spaces are no doubt proving that wrong up to some extent. But in the market companies wants to build their office their way by introducing build to suit customized solutions.

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