A few months ago, I elbowed my way through the crowds at the COWORK Conference, where I had the pleasure of chatting with a bunch of awesome German coworking space operators. My mission, should I choose to accept it, was to crack the code on what makes the German coworking scene tick. Turns out, it's a fascinating mix of booming growth and unique challenges.
To translate all that insider info into something digestible, I've whipped up a handy infographic. So, grab your favorite brew (German or otherwise) and settle in—this deep dive into the German coworking landscape is about to get interesting!
Germany's Coworking Boom
The coworking scene in Germany has exploded in recent years, with a whopping 41.5% increase in spaces since 2020, according to a survey by the Bundesverband Coworking Spaces Deutschland e. V. That's a lot of desks and brainstorming sessions!
This growth isn't limited to just a few big cities. Over 500 cities in Germany now boast coworking spaces, with Berlin, Hamburg, and Hessen leading the pack in terms of spaces per capita.
So, who are the big players in this German coworking revolution? International companies like WeWork and Spaces are definitely in the mix, but there are also some homegrown heroes like Design Offices, Friends Factory, and Rent24 making waves.
Germany's Coworking Scene: Boom or Bust? The Occupancy Tightrope Walk
So, Germany's coworking scene is booming, but before you picture a land flowing with free coffee and nap pods, let's get real. While things are definitely looking up (according to Deskmag, 46% of spaces say they're doing great!), there's a bit of a balancing act going on.
Two-thirds of all desks are filled, which sounds good, but here's the twist: bigger spaces are more occupied (75%) than smaller ones (around 50%). This might be because smaller spaces are often found in less bustling areas, or maybe they haven't quite mastered the member-magnet magic yet.
In Germany, coworking spaces are very diverse in style, size, and furniture. For example, Berlin has over 300 spaces, while Hamburg, a smaller city, has about 50. Most coworking spaces are in big cities like Berlin, where startups seek venture capital, which is less common in smaller cities. The big startup hype is focused on Berlin, creating a problem for smaller towns. They hope to replicate Berlin’s success, but it’s challenging in towns with only a few thousand people.Christian Cordes
Speaking of magic, turning a profit seems to be a different story. Only 20% of coworking spaces are actually raking in the dough. Why the struggle? High rent and energy bills are putting a serious crimp on style. Smaller spaces, with their lower occupancy rates, seem to feel the pinch the most, worried about scaring members away with price hikes.
But wait, there's a silver lining! Event spaces and meeting rooms are in high demand, which is a bright spot for revenue.
German Coworking Buzz: How People Find Their Space
Finding the perfect coworking space in Germany is all the rage, but how do people discover these productivity hubs? Here's the lowdown:
- Word-of-Mouth Wins (80%)! Good ol' fashioned recommendations rule. Make your space so awesome people can't stop talking about it!
- Search Engine Savvy Matters (Almost Half!) A website that shines in German searches is key. Think of it as a digital map leading members right to your door.
- Social Media Gets Likes (Half Agree) Don't underestimate German social media! Share cool pics, host online workshops, and be the hippest online coworking spot.
- Community is Key (One-Third Say Ja!) Building a strong community attracts new members. Think events, workshops, and a welcoming vibe where people connect and work together.
The message is clear: authenticity, online presence, and a thriving community are the golden keys to promoting your German coworking space.
The Struggle is Real: Challenges Facing Germany's Coworking Spaces
Even the coolest coworking spots face some, well, not-so-cool challenges. Let's take a peek behind the curtain and see what's got German coworking space operators pulling their hair out (metaphorically, of course, because a messy bun is the official coworking dress code).
In the German coworking industry, a unique challenge is explaining the benefits of coworking, especially outside big cities. People often don’t understand why they should leave their home offices. At our space, we bring together social workers, creatives, programmers, and entrepreneurs, and we see the positive impact of this collaboration. However, convincing traditional businesses of these benefits remains difficult.Jonte Schlagner
Finding Your Flock: The Member Acquisition Struggle
Several operators confessed that attracting new members is their biggest hurdle. It's like trying to convince your cat a laser pointer is a friend, not sworn enemy. But unlike laser pointers, coworking spaces offer actual benefits like flexibility and community, so there's that!
The biggest challenge for coworking spaces is definitely member acquisition. However, it's not the only hurdle. High rents and energy prices are putting a serious strain on profitability, especially for smaller spaces.Dr. Alexandra Bernhardt
Double Whammy: The High Rent and Energy Price Blues
Renting space in Germany is no joke! Prices have skyrocketed in recent years, and on top of that, energy bills are soaring. It's enough to make you want to switch to flickering candlelight for ambiance (not recommended for Zoom meetings).
Inflation, rising rent, and energy prices are definitely putting the pressure on. It's a balancing act: keeping costs down for members while still keeping the lights on... literally.Karen Klauke
The Paperwork Labyrinth: Navigating Regulations
German regulations for coworking spaces can be as complex as Ikea furniture instructions (minus the helpful pictures). It's a bureaucratic maze that can leave even the most seasoned operator feeling lost.
Too many regulations! It makes it hard to keep prices reasonable for members. Feels like we're constantly jumping through hoops just to keep the doors open.Vicki Janssen
Conquering Coworking Challenges
Now that we've explored some common coworking space challenges, let's see how our savvy German operators are tackling them.
Attracting Companies: From Empty Nests to Bustling Beehives
Let's face it, empty desks are a buzzkill. Companies are buzzing about flexible work solutions these days. Time to spread the word! Show them how your space can be a hive of collaboration and keep their employees feeling connected (because nobody wants a lonely drone!). Craft compelling messages that highlight your unique selling points—killer coffee, epic networking events, or just a killer vibe.
In Germany, more big companies realize they don't need large office spaces and are looking for alternatives. Some have tried coworking and are quite happy with it.Dörte Schabsky
Building a Thriving Community: From Solo Acts to Rockin' Bands
A coworking space thrives on community, right? Think of it like forming a rockin' band! Host events and networking opportunities to connect the solo acts and get them jamming together. Workshops, game nights, or even social gatherings are all great ways to create a buzz. Remember, variety is the spice of life (and workspaces)! Offer options like hot desks, meeting rooms, or even podcast booths to cater to different work styles and attract a wider range of members.
Diversification of Offerings: From One-Size-Fits-All to Mix & Match
Not everyone needs a full-time desk. Cater to different musicians! Hot desks, meeting rooms, or even podcast booths—the more options you provide, the wider range of members you'll attract. It's a workspace buffet with something delicious for everyone!
Data-Driven Management: From Guesses to Power Chords
Data is your secret weapon! Track how people use your space. Knowing which meeting room is most popular or when the free coffee disappears fastest is like having the power of a perfect chord progression. Optimize your resources, adjust your pricing, and keep things running smoothly.
The energy crisis impacts coworking spaces by making efficient energy use crucial. Coworking operators need to understand their resource requirements and use data to optimize energy consumption. Efficient computers and proper data management are key.Andrea Buehler
Top 5 KPIs for Coworking Spaces—Watch the Webinar Recording
The German Coworking Challenge: Balancing Passion with Profit
Germany's coworking scene is booming, but profitability remains a hurdle for many, especially smaller spaces. The focus on community building, while commendable, can make financial sustainability tricky. Additionally, the trend towards smaller spaces outside big cities limits revenue streams from meeting rooms and event areas.
However, the future isn't all pretzels and challenges. Here's the good news:
- Companies crave flexibility: Coworking spaces offer the perfect solution, boosting demand.
- Community is king (or queen): German spaces excel at fostering strong connections, a key differentiator.
- Data is your superpower: By understanding member usage, operators can optimize offerings and maximize space utilization.
The takeaway? Embrace data-driven decision-making, prioritize fostering a thriving community, and stay adaptable. This will help overcome current profitability hurdles and position your coworking space as a leader in the flexible work revolution. Remember, even if the market adjusts, the core benefits—flexibility and a strong community—will keep coworking relevant in Germany's office landscape.
