Sensei Elam makes some interesting observations. She gives four trends:
- Demand (especially, large corporations)
- WeWork (is expanding and diversifying and aggressively marketing)
- Scarcity of Resources (especially, community leaders)
- Health (wellness and loneliness)
Elam is excited that “15% of the SP 500 have entered the coworking world”, though I’m not really sure what all “enter” means. One thing it means is investment in coworking in a variety of permutations, “with more brands adding in coliving, coffee shops, retail and build to suit arrangements”.
WeWork has been aggressively expanding, underselling competitors, and generally being bad neighbors. Elam comments that they are also diversifying and “losing focus on the original workspace vision”. (I have never heard her criticize any coworking operation before this.)
She sees a “scarcity of resources”, by which she means that investors are finding a dearth of investments, “they’re not finding enough operators that are willing, and able to scale.” (Conversely, this means that there is a glut of money available.) The most critical resource of all is community leadership, and experienced people are “in great demand and hard to retain”.
Finally, Elam continues to emphasize wellness. She echoes the growing concern about loneliness (which, by the way, has been a problem since the invention of cities). She points out that “Coworking is the solution” to loneliness.
In a follow up with Sensei Cat Johnson, Elam emphasizes that health is at the end because it is the most important trend. This is a trendy topic, and who isn’t in favor of “healthy”? But she emphasizes that there needs to be a serious commitment, not just boxes checked. Operators need “to make sure nobody is actively thinking about committing suicide in your space”.
Elam also has frank words for coworking operators who face fatal competition from WeWork.
“When WeWork does start to hurt you—and they will—you’ve got to be able to survive it. You just need to survive because members will come back, and they’ll come back in droves because you offer a more meaningful and smaller community…We have a very clear advantage, but you’ve got to survive to be in the game.”
This is a somewhat apocalyptic vision, and one could be forgiven for thinking that this contradicts her own rosy conclusion “that Coworking will continue to thrive, evolve and take over the world.”
Elam is usually a loud advocate for the coworking industry, so it is very interesting to see her rather tough critiques of the industry. Despite her often corp-speak rhetoric, she seems to understand the original and true innovation of coworking is community, community, community.
I hold that coworking was invented to deal with the isolation of independent workers, and when it works well, it probably is a “cure” for loneliness. Implied but unsaid by Elam is the question whether piles of corporate money, branding, and diverse “services” are likely to deliver community and happiness.
My own view is that they are antithetical to authentic community, and Elam’s comments about “a more meaningful and smaller community” is telling. So is her use of the word “We” in the next sentence. She seems to think so, too.
One wonders what may unfold at the 2018 GCUC meeting. Elam promises a “really frank discussion” of the WeWork threat. But will the rest of the meeting be about authentic community, or about how to clone WeWork?
- Liz Elam, The Coworking Megatrends for 2018, in LinkedIn – Pulse. 2017. https://www.linkedin.com/pulse/coworking-megatrends-2018-liz-elam/
- Cat Johnson, Digging Deeper Into The Coworking Megatrends Of 2018: A Q&A With Liz Elam, in AllWork. 2017. https://allwork.space/2017/12/digging-deeper-into-the-coworking-megatrends-of-2018-a-qa-with-liz-elam/
- Cat Johnson, The Evolution of the Shared Workspace Industry (and Where We’re Going Next), in Cat Johnson content. 2018. https://catjohnson.co/evolution-shared-workspace-industry/
What is Coworking?
Note: please stay tuned for my new ebook, “What is Coworking”, coming in
2017 Real Soon Now.