Coworking: what drives companies to outsource the rental of their work spaces?

The revolution that has occurred in the world of work, starting from the pandemic, too has changed the real estate business around traditional office buildings. Today, given the context of economic volatility and the arrival of hybrid work, there are fewer traditional rental contracts and work is growing the tendency of companies to outsource the rental of their workspacesunderline those who deal with “coworking”, or the management of “flexible” work spaces.

It is a segment where small and large companies, such as the global pioneer, Let’s work, IWG, with several towers in the city of Buenos Aires, and HIT, the company that was born in a small space in Palermo and today operates on 35,000 square meters in nine factories in Argentina and two others in Chile and Peru.

To mark nine years on the market, HIT showed the systems of one of its buildings in Nuñez to a group of journalists. There, Uri Iskin, CEO and co-founder of HIT, commented on the trend for companies to opt for flexible offices: “there are few traditional rental closures today. There are no longer companies that buy an entire building thinking of making an investment in 10 years. The industry is moving towards a flexible model,” he says.

What is the difference that this business model can offer companies compared to traditional rental? Even if the costs are similar, HIT explains that “companies have the advantage of having adequate spaces for the business, whether it is growing or decreasing. That is, they can optimize the place more and this is fundamental in the face of the uncertainty that exists in the world and in the country.”

Furthermore, they explain, “companies benefit from a significant reduction in operating costs because they only pay for the spaces they use. There are no idle spaces to maintain.”

As for the possibilities of business expansion, Gabriel Bucher, co-founder and CCO of the co-working company, assures that “there is room for gigantic growth. Flexible workspaces currently represent 5% of the total triple-A workspaces. And the the horizon is that between now and 2030 participation will rise to 30%”, he says.

In particular, HIT plans to inaugurate at the end of April another building in Vicente López (HIT VILO), which required an initial investment of 2 million dollars. The company also has plans to expand into Mexico, Brazil, Colombia, Spain and also increase its presence in Chile and Peru.

Another aspect that adds to the business is the 24/7 billing model. That is, the company succeeds the square meters it occupies are invoiced “from Monday to Monday”. Something they obtain by subletting the spaces also for events, or meetings at times when they are not usually occupied as offices.

“Our customers (who rent offices but also external ones) rent out their offices, rooms, event spaces with us, we offer gastronomy and corporate lunches, wellness services, we celebrate a company anniversary, a 40th birthday, a streaming event. “Our spaces are used all the time and this translates into billing.”

Mariano Costa Naum, HR manager of the company, finally underlines another aspect that affects the decision of large companies: “lCompanies lose talent because the new generations don’t want to go to the office from 9 to 6. The working environment has become a determining factor in whether or not to choose a job. The idea therefore is to add value to companies with spaces that encourage people to go to the office and not stay and work at home.”