Corpoworking - what are the conditions for success?
Oct 12, 2022
Corpoworking is a major trend that is transforming the way companies view their workspaces. By opening their offices to external coworkers, companies can reduce their real estate costs, enrich their professional ecosystem, and generate new sources of revenue. But for this strategy to work, several key conditions for success must be met. Discover everything you need to know to make your corpoworking project a success in this comprehensive guide.
What is corpoworking?
The term "corpoworking" —a portmanteau of "corporate" and "coworking"—refers to the practice whereby a company makes part of its premises available to external workers or businesses, as part of an integrated coworking space. Unlike a traditional coworking space entirely dedicated to this activity, corpoworking is part of an existing professional structure that has underutilized offices or available rooms.
This concept emerged from the convergence of two major underlying trends: the rise of flexible office arrangements within large and medium-sized companies, and the growing popularity of coworking as an alternative to traditional office work or remote work. The host company thus becomes a sort of small-scale coworking operator, without necessarily being a commercial real estate professional.
Corpoworking vs. traditional coworking: What are the differences?
It is important to clearly distinguish between corpoworking and traditional coworking, even though the two share similarities. In a traditional coworking space, there is no “resident” company acting as a host: the space is entirely dedicated to accommodating coworkers and is managed by a specialized operator for whom this activity is the core business.
In a corporate coworking space, on the other hand, a company occupies the premises itself and opens up part of its space to external users. The host company continues to carry out its core business, and coworking serves as a secondary or complementary activity. This setup creates a unique dynamic: coworkers interact with the host company’s employees, which can be a real asset but also a source of tension if not managed properly.
The Benefits of Coworking for Host Companies
Launching a coworking space offers many advantages for the company opening its doors. Here are the main benefits to expect:
- Reducing real estate costs: By renting out vacant office space to external coworkers, the company generates additional revenue that partially or fully offsets its rent.
- Enriching the ecosystem: Bringing together professionals from various sectors allows for the exchange of new expertise, the formation of business partnerships, and the expansion of one’s network.
- Fostering innovation: A diverse workforce encourages informal exchanges, which serve as a source of inspiration and creativity for internal teams.
- Brand image: Offering an open and modern coworking space reinforces the image of a dynamic company that is open to its surroundings.
- Flexibility: Service agreements with short notice periods allow for great flexibility in managing spaces according to the host company’s needs.
Are my premises suitable for coworking? Assessing feasibility
Before getting started, it’s essential to assess whether your space is suitable for a coworking setup. This assessment phase is often referred to as a “coworkability test” in industry jargon.
Office layout
The nature of the available spaces is the first factor to consider. Closed or semi-closed offices are much better suited for coworking than open-plan spaces. While an open-plan space may seem more cost-effective per square foot, it is much harder to fill: noise pollution, disruptive phone calls, or simply a lack of privacy can quickly discourage potential coworkers. If you only have an open-plan office, installing phone booths or soundproofed cubicles is strongly recommended before opening the space.
Confidentiality and the nature of the business
Not all companies can afford to open their doors to outsiders. Companies that handle sensitive data, classified information, or confidential strategic projects will need to carefully assess the risks before proceeding. Certain regulated professions —such as lawyers, certified public accountants, or notaries—may host other professionals in their field, but their codes of ethics impose specific restrictions. Ideally, there should be a separate entrance for the coworking space, allowing coworkers to move about without passing through confidential areas.
Available equipment
The quality of the facilities you provide directly determines the appeal of your coworking space. Coworkers expect to find, at a minimum: a reliable and secure high-speed internet connection, spaces for relaxation or socializing, access to a kitchen or kitchenette, meeting rooms available for reservation, and a printer or printing area. Network security is a critical issue: the company’s internal network must be separate from the network made available to coworkers.
The key factors for success in coworking
Several key success factors have been identified by companies that have developed corpoworking initiatives. Here are the most important ones to keep in mind before launching your project.
The company's commitment to openness
The primary factor for success is cultural rather than logistical. The host company must be willing to open up its professional ecosystem. If the primary motivation is purely financial—filling empty offices to make the rent worthwhile—without a genuine desire to meet new professionals, the experience is likely to be disappointing for both parties. A welcoming atmosphere is the driving force behind coworking: it is what creates value, not the other way around.
A warm and welcoming atmosphere
Welcoming coworkers shouldn’t be left to chance. You need to designate an internal point of contact who can welcome newcomers, introduce them to existing teams, and create the conditions for a pleasant work environment. First impressions play a huge role in retaining coworkers. A welcome coffee, a tour of the premises, and an overview of the community guidelines: these small gestures make all the difference.
A clear definition of the rules for living together
To ensure a smooth working environment, it is essential to clearly define and communicate the rules governing the space: access hours, permitted areas, use of meeting rooms, acceptable noise levels, waste management, safety policies, etc. These rules should be provided to each coworker upon arrival and posted in common areas.
Internet connection quality
A coworker without a reliable internet connection is an unhappy coworker who won’t return. The quality and stability of the internet connection are among the most important factors when choosing a coworking or corporate coworking space. Provide a dedicated connection for coworkers, separate from the company’s internal network, with sufficient bandwidth to support multiple simultaneous users.
How to Design and Organize Your Coworking Space
Space planning is a crucial step that largely determines the success of your coworking project. A well-designed space attracts coworkers, encourages their loyalty, and generates positive word of mouth.
Clearly define the areas
It is essential to physically and visually separate the spaces designated for coworkers from those reserved for internal employees. This separation can be achieved through partitions, appropriate signage, or simply by using different floors. It helps protect the host company’s confidentiality while providing coworkers with a space that is clearly identified as their own.
Creating welcoming spaces
Social spaces —such as the kitchen, coffee area, and lounge—are at the heart of the coworking experience. These are the places that foster informal interactions between coworkers and in-house staff, and generate the most valuable synergies. Investing in a well-equipped and inviting coffee area is one of the best returns on investment in a coworking project.
Plan for flexible spaces
The needs of coworking members are evolving: some need a dedicated desk for several months, others are looking for a flexible workspace on a daily basis, and still others need a meeting room for a few hours. Offering a flexible solution with different types of spaces (fixed workstations, flexible workstations, half-day meeting rooms) allows you to reach a wider audience and optimize space utilization.
Legal and Contractual Management of Coworking Spaces
Setting up a coworking space requires an appropriate legal and contractual framework. This aspect is often underestimated by companies embarking on this venture, putting them at risk of encountering complications down the line.
The Service Agreement
The most common contract type in coworking is the service agreement. Unlike a traditional commercial lease, this type of contract is not subject to commercial lease regulations and offers much greater flexibility, particularly regarding notice periods (often 1 to 3 months). It defines the terms of access to the premises, the services included, the amount of the monthly fee, and the termination rules. It is strongly recommended that you have this contract drafted by a legal professional to protect yourself from potential disputes.
Insurance and Liability
The host company must verify that its comprehensive insurance policy covers third parties present on its premises. It is advisable to require each coworker to provide a current certificate of professional liability insurance. This basic precaution protects you in the event of an accident or damage caused by a coworker on your premises.
The Lease and Subletting Rights
If your business rents its premises (rather than owning them), it is essential to verify that your commercial lease permits partial subleasing or the use of the premises by third parties. In most standard commercial leases, subleasing is prohibited without the landlord’s prior consent. Be sure to obtain this consent in writing before proceeding with any coworking arrangements.
How to set prices for your coworking space
Pricing is a delicate process for any company entering the coworking market. The goal is to strike a balance between being attractive to coworkers and ensuring profitability for the host company.
Market rates
Corpoworking rates vary depending on geographic location, the quality of the facilities, the services included, and the type of space offered. In the Île-de-France region, a coworking or corpoworking workstation costs an average of between 200 and 500 euros per month for a fixed desk, and between 10 and 30 euros per day for a flexible workstation. In regional areas, rates are generally 20 to 40% lower. It is advisable to research the rates charged by competing coworking spaces in your geographic area before setting your own pricing structure.
Packages to offer
To maximize the appeal of your offering, consider providing several options tailored to different types of coworkers: a monthly membership for regular users, day passes for occasional users, weekly packages for digital nomads passing through, and hourly rates for meeting room access. This variety of pricing options will allow you to reach a wider audience and optimize the occupancy rate of your spaces.
Building a community at the heart of coworking
One of the most valuable assets of a well-managed coworking space is the sense of community it fosters. It is this human and relational aspect that sets a vibrant coworking space apart from a simple sublet office.
Organizing regular events—such as networking breakfasts, themed conferences, training workshops, and after-work gatherings—is an excellent way to build connections among coworkers and foster their loyalty. These social gatherings also provide the host company with an opportunity to showcase its expertise and strengthen its brand image among a qualified professional audience.
Building a community takes time, but it is one of the most profitable long-term investments for a coworking space. A coworker who feels well integrated into a dynamic professional community stays, on average, two to three times longer than an isolated coworker.
Mistakes to Avoid in a Coworking Project
Even with the best intentions, certain common mistakes can jeopardize the success of a coworking project. Here are the main pitfalls to avoid:
- Neglecting IT security: Never share the company’s internal network with coworkers. A dedicated, secure Wi-Fi network is essential.
- Underestimating day-to-day management: Coworking requires time and human resources. Without a dedicated point of contact, the experience quickly deteriorates.
- Neglecting legal matters: Review your lease and insurance policies, and put appropriate contracts in place from the start.
- Setting up an open-plan office without soundproofing: Noise is the biggest enemy of open-plan coworking. Provide soundproof booths or quiet zones.
- Setting prices too high at the start: It’s better to start with attractive rates to fill the space and build a community, then raise prices once the space is established.
- Ignoring coworkers' motivation: Above all, coworkers are looking for a stimulating work environment and a professional community. Don't view them solely as a source of revenue.
Conclusion: Corpoworking—an opportunity not to be missed
Corpoworking offers a real opportunity for companies with underutilized space that want to optimize their real estate costs while enriching their professional ecosystem. To succeed, the right conditions must be in place: suitable facilities (preferably private offices), a corporate culture open to the outside world, a solid legal framework, high-quality amenities, and above all, a genuine sense of hospitality and friendliness.
Coworking is not a magic solution that automatically generates revenue without any effort. Above all, it is a people-centered endeavor that requires commitment, kindness, and perseverance. But when the right conditions are in place, it can become a powerful tool for business growth, brand building, and value creation—both for the host company and for the coworkers who join it.
Are you thinking about converting part of your office space into a coworking space? Coworkea can help you with your project, from assessing your premises to setting up the space and recruiting your first coworkers. Contact us to learn more.