What Is a Coworking Space? Plans, Costs and Who It Suits
Freelancers, startups and even large companies now work out of shared offices instead of leasing their own. These shared offices are called coworking spaces. They give you a ready desk, internet, meeting rooms and a professional setting, all on a flexible plan. This guide explains what a coworking space is, how it works, and who it suits.
What a coworking space means
A coworking space is a shared office where people and companies from different businesses work in the same location. You rent a desk, a private cabin, or a set of seats on a flexible plan, and share common facilities like internet, meeting rooms, a reception, a pantry and printers. The operator runs and maintains the space, so you just walk in and work. It removes the cost and lock-in of leasing and fitting out your own office.
Types of coworking plans
- Hot desk. Any free seat on a first-come basis, the cheapest option.
- Dedicated desk. A fixed desk that is always yours.
- Private cabin. A lockable room for a small team.
- Managed office. A larger private space run by the operator for a bigger team.
- Day pass. Access for a single day for occasional users.
Why coworking is popular
The main draw is flexibility and low cost. You avoid a long lease, a big deposit and the cost of furniture, internet and upkeep. You can scale up or down as your team changes. You also get a professional address, meeting rooms and a community of other businesses, which helps with networking. For large firms, coworking offers ready space in new cities without a long commitment. Compare it with leasing in our note on office space.
Coworking versus virtual office versus leased office
| Option | What you get | Best for |
|---|---|---|
| Virtual office | Address and services, no seat | Registration and mail |
| Coworking | A ready seat and shared facilities | Flexible working |
| Leased office | Your own private space | Large, settled teams |
If you only need an address, a virtual office is enough. If you need a place to work, coworking fits. For a large settled team, a leased office may cost less per seat over time.
Who should use coworking
Coworking suits freelancers, startups, small teams, and companies opening in a new city. It also suits remote workers who want a professional setting away from home. If you have a large, stable team and a long horizon, a leased and fitted office can work out cheaper. Weigh the flexibility against the per-seat cost.
Frequently asked questions
What is a coworking space?
It is a shared office where people from different businesses work in the same location, renting desks or cabins on flexible plans and sharing facilities like internet and meeting rooms.
How does coworking work?
You pay for a desk, cabin or seats on a flexible plan, and the operator provides and maintains the space and facilities. You walk in and work without setting up your own office.
What are the types of coworking plans?
Hot desks, dedicated desks, private cabins, managed offices for larger teams, and day passes for occasional use.
Is coworking cheaper than a leased office?
For small or flexible teams, yes, because you avoid a long lease, big deposit and fit-out cost. For large settled teams, a leased office can be cheaper per seat over time.
What is the difference between coworking and a virtual office?
Coworking gives you a real seat to work from. A virtual office gives only an address and services, with no fixed workspace.
Can I register my company at a coworking space?
Many coworking operators allow business and GST registration at their address, with the needed documents. Confirm this with the operator.
Who uses coworking spaces?
Freelancers, startups, small teams, remote workers, and large companies opening in a new city or wanting flexible space.
What facilities do coworking spaces offer?
Desks and cabins, high-speed internet, meeting rooms, reception, a pantry, printers, and often events and a community of members.
Is there a lock-in in coworking?
Plans are usually flexible, from a day pass to monthly terms, though private cabins and managed offices may have a short commitment. Check the plan.
Can a large team use coworking?
Yes. Managed offices within coworking centres can house larger teams in a private space run by the operator.
Is coworking good for a startup?
Yes. It gives a professional setting, meeting rooms and flexibility at a low cost, which suits startups that grow and change fast.
Do I get a meeting room in coworking?
Yes. Meeting and conference rooms are shared and booked on a pay-per-use or included-hours basis in most plans.
Can I get a private cabin in a coworking space?
Yes. Private lockable cabins for small teams are a common plan, giving privacy along with shared facilities.
How do I choose a coworking space?
Consider the location, the plan and cost, the internet and meeting rooms, whether registration is allowed, and the community and support on offer.
Are coworking charges subject to GST?
Yes. Coworking membership and services usually attract GST, and registered businesses can often claim input credit. Confirm the applicable rate with the operator.
Can I scale my team up or down in coworking?
Yes. You can add or reduce seats as your team changes, which is a key reason startups and growing firms prefer coworking over a fixed lease.
Coworking gives you a ready, professional office without the cost and lock-in of a lease, which is ideal for flexible teams. If you only need an address, see our virtual office guide instead.
