A new trend in office and living spaces is space as a service. This is where you can pay to use a shared workspace only when needed instead of buying or renting the physical property.
It’s a more flexible way to live or work without the responsibility of ownership or long-term leasing.
Technology is changing how businesses operate, how people work and live, and where they do it.
This transformation is made possible by the growth of high-speed connectivity, smartphones, cloud computing, and AI. Combined, all these technologies are changing the way we use spaces.
SPaaS is often seen as a result of changes happening in the real estate industry caused by technology.
This shift has enabled businesses to operate in new ways and changed how people work and live.
Here at Sloboda Studio, we create rental marketplaces to help you build the SPaaS solution that works for both real estate agents and renters. This will help you make a solid space as a service business model for your investors.
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SPaaS In Real Estate
Businesses invest in creating spaces that improve the employee experience. This includes custom services and improving the value of the space to boost productivity.
The proposed co-working spaces business model encompasses a wide range of creative spatial solutions. This approach considers any and every employee’s need or demand to let them deliver optimum work output.
Also, it is possible to use such a solution for living space rentals. For example, Sloboda Studio has created Moovle, an Airbnb-like accommodation solution.
The Sloboda team created a rental marketplace where clients can pick a place to stay while estate agents can upgrade their listings.
Sloboda Studio is a custom full-cycle software development company that has helped to build and scale over 10 real estate products.
App-based service providers offer more flexibility and shorter-term commitments, making it easier for renters to move on when they’re dissatisfied or need more space.
Contract terms typically range from three months to two years but can be negotiated.
Why Do You Need To Follow This Business Trend
The concept of space-as-a-service has become increasingly popular in recent years due to the many benefits it can offer.
Space-as-a-service combines non-traditional work practices, settings, and technological advancements to supplement or replace traditional offices.
This can significantly improve the overall functionality of a space, as well as encourage creativity and innovation.
Space-as-a-service has grown in popularity due to several factors, including:
Better Employee Experience
In today’s work environment, there is an increasing focus on freelancing, contact-based jobs, and short-term positions that do not require a physical workspace.
A desire for convenience and flexibility and a preference for services over products drives this trend. Younger specialists prefer hi-tech workspaces with a certain degree of control.
Business model coworking space considers employees’ habits, behaviors, and needs when designing workspaces to provide a long-term solution at a one-time cost.
This approach has proven to be successful in meeting the changing needs of today’s workforce.
Cost-Effectiveness
The space as a service business model is a cost-effective way for companies to carry out their business operations.
This model allows organizations to use office or living space only when needed, saving on unnecessary expenses.
Furthermore, they do not have to pay the expense of renting or buying a large corporate office.
Time Economy
Both people and real estate agents can connect via one app where all the space options are placed. It saves time for both of them as there is a place where all information is saved.
Such an approach is perfect for those looking for a place to work or to stay for a short period. People can check the availability and whether the owner is ready to offer short-term rentals.
Plus, it allows people to find the closest co-working space, so they don’t need to drive around the city.
Flexibility
The modern world is ever-evolving and constantly in flux, and large companies are no different. As such, they prefer to conduct their business promptly and efficiently.
To support this, many companies are turning to shared office spaces, which allow their employees to have more flexibility and freedom of choice regarding where they want to work.
This can be particularly beneficial for employees who want to feel a sense of independence and autonomy when it comes to their job, enabling them to work in an environment that suits their preferences and lifestyle.
Premium Property Access
Leasing an office space can be a more attractive option for businesses, as it offers the opportunity to have an office in a desirable location without the financial commitment of purchasing a property.
This could benefit companies starting out and still need to make a significant financial investment. It could also be helpful for experienced companies that need the flexibility of having a shorter-term lease.
Furthermore, renting a space can be a great way to maintain a high-end presence in a prime area without committing to owning the property.
Activity-Based Working
Shared offices can provide companies with a dynamic and interactive workspace. Company employees can move around and interact with each other in an open setting, which can help boost productivity, encourage collaboration, and allow the business to scale.
All in all, shared offices are an excellent way for companies to create a vibrant and productive work environment.
Most Popular SPaaS Solutions Around the Globe
There are some big companies you might have heard of that use space as a service business model. Here are some we find the most interesting.
WeWork
WeWork leases office spaces worldwide, providing flexible lease options. It offers dedicated desks, standard offices, office suites, and full-floor offices.
Its workspaces are used by businesses of all sizes, from freelancers to Fortune 500 companies. It operates in over 700 global locations across 150 cities and 38 countries.
Airbnb
Airbnb is an online platform connecting hosts with guests looking for accommodations in various locations worldwide.
Since its inception in 2007, the company has grown to offer over 6 million listings in more than 100,000 cities and 220 countries.
Clutter
Clutter is a company that provides physical storage and moving services on demand.
Based in Los Angeles, Clutter has created a platform that handles all aspects of logistics and supply chain management, making it possible to offer consumers a more convenient solution at the same price as traditional storage and moving companies.
Final Thoughts
The real estate industry is beginning to embrace technology and innovation, leading to a shift towards the co-working spaces business model.
This transformation is enabled by high-speed connectivity, digital devices, IoT, AI, and robotization, which are changing how we use space.
The pandemic has caused a shift in urban dynamics, leading to a merging of living, working, leisure, and education at a smaller scale.
To successfully change this paradigm, stakeholders must come together and form partnerships. However, this may take time to achieve in practice.
When starting your SPaaS business, you’ll need a solid digital solution to keep everything in place. Sloboda Studio will gladly help you with that. Contact us for any consultation regarding space as a service.
