It turns out that renting a decent-sized office in most metros and furnishing it isn't all that expensive. It's really only in bizarre markets like SF or NYC where they really click.
My thinking is that they work much better for companies in the 1 or 2 person early stage and quickly stop making sense as you near some number approaching 10 people.
* toilet paper provided
* coffee made
* trash taken out
* Comcast negotiated with
* walls decorated
* lease docs who cares
* bikes not stolen
Running an office was a hassle more than an expense. Though the private bathroom was nice.
Coworking hits a sweet spot when you don't want to hire an office manager.
* quiet working conditions
I was at WeWork in SOMA ( San Francisco) this week for an interview with a Crypto Exchange startup. Was really surprise at how noisy it was, everywhere except the badge access room (which I'm guessing is very high fees).
The recruitment firm was working out of WeWork. That makes sense for them, cos they are on phone on all day, but what about software engineers and other techies? Do any of them work at WeWork? How do they deal with the noise? I don't see any way to do deep work in a place like this.
EDIT: This particular WeWork was unusually noisier than any other coworking places I've been at. Noisier than Workshop Cafe in Fidi, pariSoma in SOMA, and a couple of others that've since shutdown (I've been coworking on sideprojects nights, weekends since 2008).
At one point, there was even a family with 2 small kids eating lunch there.
Also for 1-2 months half of the tables didn't have a power outlet because they had to remove the extension cords (security reasons) and had to wait until they could install the cords below the floor.And they didn't even offer a discount or something in return. Neither did they inform the customers how long and why this is happening - I had to go up to them and ask. How can this happen?
For a business where operational excellence and customer support must be stellar, they are not doing a very good job. And don't get me started on their software. And we've tried out 3 locations in SF, with similar experiences.
Maybe it's different in other cities.
But I've had this experience working at private offices as well. It's basically a problem anywhere with a) open-office plans and b) sales/marketing people who are in the same area as developers (sometimes startups outgrow a co-working space but aren't big enough for a seperated office).
This is why I work with headphones on the majority of the time whenever I'm in an office (coworking or otherwise). I have enough trouble self-regulating my attention without having to distract myself from others.
There was a similar problem with the capacity of the men's bathroom.
WeWork should take more care that their physical infrastructure is not overwhelmed by subtenants who are mostly alike.
As for Co working spaces, I think they have a place, but once you hit 1 or 2 other coworkers, you need your own space. It's worth the lawyer for reviewing what you're getting in to, but I do agree, there's a lot of sketchy places with dodgy and gross problems. But you can find nice spots if you're patient and diligent.
This is the real advantage of them. Even if it costs x% more the value of not being stuck with a lease for a long time is definitely worth it. A lot of financial firms in London are moving to them, leases are typically long (10 years with a 5 year break), and with the uncertainty around brexit it makes total sense to transfer the risk to WeWork et al for not much money at all.
Again, there can be value, and places like WeWork, 1871, Blue1647, et al, serve specific needs. Like I said before, a lawyer and a willingness to hunt for the right space make all the difference. And right now, there's more empty spaces than filled, so it's easier to negotiate something that could even be just yearly...
I don't like open-plan or cubes but I wonder if having three people in one office is any better, and I also wonder how many companies do that when they go with something like Regus.
It's one redeeming feature is it hosts developer meetups free as a marketing move and has a decent room for that.
WeWork is useful! I think it gets a bad rap (though the atmosphere and the general vibe of the clientele probably does not).
But unless you're in SFBA or Manhattan, office space is just not that expensive. As soon as you're making payroll, it's pretty insignificant. If I start from 1-2 people again, I'll probably consider WeWork again. But I'll get out of WeWork much faster next time, too.