Coworking VS. Traditional Office: What to Choose for Your Business?

The traditional office environment is no longer the only option for businesses. In recent years, coworking spaces have become increasingly popular as an alternative to private office space. But what exactly is coworking? And is it right for your business? Let’s take a look at the pros and cons of coworking vs. traditional office space to help you make the best decision for your business.

What Is Traditional Office?

The traditional office is the classic work environment. It is private and includes an enclosed workspace and all necessary amenities, typically situated in a semi-public location. These conventional offices provide the space and privacy required to get the job done without distraction. Traditional offices also allow team members to interact more effectively with one another, allowing for collaboration to take place in a focused setting. In an age of growing remote workforces and distributed teams, traditional offices remain important elements of many organizations' success and can help maintain an effective company culture.

What Is Coworking Space?

Coworking space is a concept that's quickly becoming popular across the world. It refers to an organized and flexible office space used by individuals and companies who don't require a full-time workspace but need more than just a few tables and chairs. Coworking space offers all the necessary amenities, such as fast internet, printing, and meeting rooms, and also allows access to exciting activities that help build a coworking community. The coworking concept encourages collaboration, networking, and sharing of ideas across different industries. It is the perfect choice for freelancers, entrepreneurs, professionals on the move, remote workers, and other individuals who seek flexibility in their workspace without sacrificing the office environment.

Pros and Cons of Coworking Space

Despite the cons, coworking space office models remain a popular choice amongst many companies due to their advantages and the newfound autonomy they have provided for employees in their working environment.

Coworking Space Advantages

Coworking spaces allow professionals from all backgrounds and industries to come together and create an atmosphere that benefits everyone.

Modern Solutions

Leasing a coworking space means that you no longer need to worry about having professional and up-to-date productivity tools in your office. You can be sure that the shared workspace you're renting is updated with current coworking software and technology, such as strong Wi-Fi and flexible workspaces so that your team can work more efficiently than ever.

Collaboration & Networking Opportunities

Coworking offices provide small businesses and entrepreneurs with invaluable opportunities for open communication. Having social events at these coworking spaces allows you to gain more business contacts and grow your network. You can open yourself up to potential partners and other businesses who will enrich your ventures in a myriad of ways. Social events in professional environments encourage social interaction which may open doors to new possibilities in their respective fields.

Access to Facilities

Beyond providing flexible workspace and a more relaxed atmosphere, coworking space providers offer an impressive range of amenities that cater to the needs of members. These amenities include everything from housekeeping and security services to crèche facilities and gaming zones, creating a comprehensive environment where members can do their best work.

Powerful Working Environment

Shared office space is widely praised for its creative environments that encourage out-of-the-box thinking and innovative solution-oriented work. By fostering an atmosphere filled with high energy and enthusiasm, employees feel motivated to reach their highest potential.

Included Management

Coworking includes space hosts that handle all aspects of office management from Wi-Fi and office supplies, to paying bills or miscellaneous expenses, so you don't have to. They will take care of the day-to-day tasks and you can focus on your business goals without distraction.

Coworking Space Disadvantages

However, despite the advantages of coworking spaces, they also contain certain drawbacks that should be kept in mind while making decisions about leasing working space.

Lack of Confidentiality

Coworking offices are a great affordable option for businesses, but they may not always be the most practical choice when sensitive information needs to be kept secure and an employee requires their own private space.

Limited Customization

The biggest complaint about coworking spaces is that they can be inflexible and lack customization. In particular, those looking for unique designs or bespoke layouts often find that their options are severely limited when it comes to this type of workspace.

Less Focus

A coworking office can be especially chaotic due to the sheer number of companies operating in one space. With phones ringing, keyboard tapping, and conversations all at once, the level of noise can impede productivity and hinder employees from finishing their tasks.

No Brand Promotion

Many organizations find that coworking does not offer traditional promotional opportunities such as prominent real estate placements or high-visibility product sampling. So, if you are looking for a way to raise awareness about your brand, it is worth considering a traditional office space lease.

Pros and Cons of Traditional Office

If you care about your professional branded image and want more privacy and control, private office space is the right choice for you. However, this type of office space also has its cons.

Traditional Office Advantages

Conventional office space offers plenty of advantages that make businesses choose this type of workspace type.

Higher Prestige

Traditional offices are great when you want to promote your brand and show that your company is stable. A private office space office can be a great place to host meetings and events, as well as a central location for your team to work from. If you're looking to take your business to the next level, an office is a great way to do it.

Security

Keeping sensitive information secure should be a top priority in any workplace, especially if you are in the legal sector or a therapist. With an office local network, you can do just that, while also making it easier for employees to organize their private space and focus on the projects they are working on.

Complete Control

With complete control over your office space, you can create a professional setting that will meet all your office management needs. You can choose everything from wall decorations to furniture arrangements, allowing you to create a more stable routine and workspace relationships.

Higher Productivity

Working in a dedicated office has many benefits for your team. Without the distraction of other companies or people, your employees are able to concentrate on their own work and stay productive throughout the day.

Extra Space

Leasing a traditional office space offers a greater opportunity to grow and evolve. Coworking can provide short-term relief, but a constantly moving team might get distracted by all the disruption. Additionally, most shared workspaces come with restrictions on company size, meaning that you would eventually need to find an alternative office space in order to accommodate future growth.

Traditional Office Disadvantages

The conventional office environment can be a great place to work, however, it can also have its drawbacks.

Expenditures

Working in a traditional office space offers many benefits, but there are hidden costs that can't be ignored. Employers must consider paying rent and other maintenance fees associated with the facility, as well as furniture and supplies that might be necessary.

Dedicated Office Management

You should be aware that when renting an office there are obligations and office management tasks that come along with it. These include a long-term lease, entering into an official contract with the owner, getting the building appropriate for usage, as well as furnishing it.

Reduced Collaboration

While the secured job and familiar faces of working within a single organization can bring comfort, it's important to keep in mind that networking opportunities may become limited as everyone is confined to the same office space. Over time, this could lead to a stagnant routine in which individuals are not presented with opportunities for growth.

What Do Employees Want in an Office Space?

Personal spaces in the office can make a big difference to an employee's morale and performance. When every inch of their workplace is optimized for productivity, they keep motivated while completing their tasks efficiently.

Studies have shown that workers who feel more connected to their workspace are likely to have higher levels of job satisfaction, leading to greater productivity and long-term commitment. As such, having designated personal spaces such as a dedicated desk or cubicle to create a sense of ownership for employees, allowing them to customize what works best for them. Equipping those areas with essential facilities sends the message that their opinion matters, which helps build strong workplace bonds.

Are Coworking Spaces More Trending?

Coworking office space is becoming more and more popular with professionals, entrepreneurs, and even freelancers. These spaces provide an abundance of creative energy and an ideal atmosphere to collaborate, make connections and focus on tasks. Pooling resources achieved by a shared space have opened so many opportunities for business growth that is inconceivable in traditional office or home offices. The cost saving associated with coworking also makes it incredibly attractive to everyone from startups to established business owners. For those who value sociability and flexibility, coworking is the go-to workspace solution.

How Much Does Coworking & Traditional Office Lease Cost?

Leasing an office can be a tedious process, and the ensuing rental costs may not always fit within a budget. This can be especially true for small businesses and startups, which often require financial flexibility. Fortunately, coworking spaces offer an alternative to private office leasing scenarios by providing all-inclusive pricing that covers rent, utilities, and amenities like cleaning services, security, and IT support. However, renting a traditional office in a long term is more beneficial. Therefore, it is a better option for large businesses that are ready to pay additional occupancy fees and enjoy their private headquarters.

What Is the Difference in Corporate Culture in Coworking VS. Traditional Office?

Coworking spaces tend to have a much more relaxed atmosphere and encourage collaboration amongst different parties. This type of environment fosters creativity and helps businesses take advantage of communal resources and knowledge. In contrast, private office settings are usually much more structured with set roles for each team member and little room for analysis outside or around their respective work scope.

Coworking, therefore, may benefit small businesses by promoting an increased level of innovation that can be used to tackle the issues faced in the industry today. On the other hand, private office spaces tend to be quite formal affairs and prioritize individual productivity over group interactions.

What Workplace Is Right for You?

Deciding whether to work in a traditional office or join a coworking space can be an overwhelming one, but there are many factors to consider when deciding what to choose for your business. Weigh these factors carefully to determine what kind of working arrangement best suits your unique corporate culture and business needs.

Coworking VS. Traditional Office for Rent in Chicago

Don't know what's best for your business? Whether you’re looking for private offices or a coworking to allow your team to collaborate and grow, there is a perfect solution available. Let us help you decide and get a quote today.