The first Latin American Coworking Summit took place yesterday in Mexico City. Organized by COLATAM, the Latin American coworking community, the event focused on the evolution of coworking in Latin America and trends that will shape the future of the industry in the region. Topics covered during the first day included the state of the flexible workspace industry, design, community, the evolution of coworking, and much more. The event kicked off with a presentation by the Instant Group’s LATAM Client Services Director, Luis Perez. Perez explained that there are four main engines driving the change and evolution of the real estate industry. These four trends have drastically changed the commercial real estate industry, and they have contributed to the growing search and demand for flexible workspaces. Since 2004, online searches for coworking in Latin America has grown significantly. Interest for coworking spaces has grown significantly and constantly since 2004, globally and in Latin America. In Mexico specifically, searches for coworking spaces has surpassed that of the US in the past two years. However, people aren’t just interested in coworking — although it is by far the most common and marketable term. Perez argues that it’s time that people embrace the term flexible workspaces. “The industry goes well beyond coworking; we have incubators, accelerators, maker spaces, serviced offices, managed offices, and more.” Suggested Reading: “Coworking might not Need a New Definition, but It Needs to Broaden the One it Has” The LATAM flexible workspace industry will closely follow global trends. Experts predict that the region will experience the nichification of the industry in the near future. Moreover, corporate demand of coworking spaces will continue to drive the growth of the industry, however operators need to be aware that companies want to be able to brand their workplace; there will be increased demand for ad hoc space. The industry in LATAM will also experience consolidation. Big players will merge or acquire competitors in large cities; while small, independent operators will proliferate in secondary markets. Technology will play an important role in the success of operators. Users expect fully functional digital platforms that enable a seamless experience across all touchpoints; they want an app that allows them to book a desk or meeting room, to pay their membership, to connect with other members, etc. Landlords will play a key role in the growth of the industry. Many are opting for management contracts and others are launching their own version of flexible space. CRE players and stakeholders are being forced to adapt or they risk losing business. Suggested Reading: “Top 5 Ways CRE is Crossing Into the Coworking Industry” Marc Navarro, coworking expert and consultant, argues that the lines between coworking and business centers are increasingly blurring. Both are realizing that they need something from one another; coworking spaces need private offices while business centers have started to appreciate the value of community and communal areas. It’s not only landlords and property owners entering the industry; the hotel industry is making its way into it as well. This poses a significant threat and opportunity for existing coworking operators, Navarro argues. Hotels have nailed down hospitality and service, they have a different way of doing things, which has positively impacted the coworking experience, like the case of Selina. Last but not least, size does matter. Coworking locations are getting bigger in terms of square footage. Many operators are no longer growing in terms of more locations, but they are seeking to expand their existing spaces. As for how coworking has evolved, Manual Zea from Coworking Space gave an interesting presentation. He argues that in the case of Spain and LATAM, the evolution can be appreciated with the names of the Coworking Spain conferences, which have taken place since 2012. Coworking in Latin America, just as in many other regions, is past the point of no return. It has officially changed the status quo of commercial real estate as companies won’t go back to traditional lease models. Stay tuned for more from the first Latin American Coworking Summit. Facebook Twitter LinkedIn Messenger
Mexico has hosted Latin America’s first co-working summit, organised by co-working collaborative Colatam. The event highlighted the strength of demand and growth of the co-working sector as well as the opportunities for operators in the region, since existing operators are failing to meet that demand. Mexico was flagged as an area experiencing particularly strong growth.