3 Reasons to Adopt Space as a Service Business Model

Companies are constantly striving to come up with new innovative solutions to use the available spaces as much as possible. Let us look at the reasons why Space as a Service has become a popular business model in the real estate sector

Fremont, CA: Space as a Service business model is gaining traction in the world of real estate. There has been a continuous increase in the demand for real estate spaces for living and working. Companies are constantly striving to come up with new innovative solutions to use the available spaces as much as possible. Some of the smart players have successfully monetized physical spaces.

Space as a Service is a crucial component of the giving-out economy that offer millennials the flexibility of working or living in shared spaces without the problem of ownership or lease. Let us look at the reasons why Space as a Service has become a popular business model in the real estate sector.

Flexibility

Majority of the companies prefer doing business on flexible terms in this digital age. Shared space allows workers to choose from where they want to work, thus increasing flexibility. The time spent in commuting is thus saved, which in turn results in higher productivity. With a co-living space offer, the tenants have a 'no-strings-attached' accommodation option. Millennials are receptive to these spaces as they don't generally engage a long-lock in the period, and they have the autonomy to live as long as they need to.

Allows Activity-based Working

Businesses want to make sure that the productivity levels of their employees are increased, and the experiences of the employees have improved. Using shared spaces allows a company to have an energetic workplace where employees are not limited to a single room. This fuels creativeness and instills a sense of self-sufficiency in the employees, which in turn steers the growth of the company. The company also gets the opportunity to make the best use of space utilization and reduce costs significantly.

Cost-effectiveness

There isn't a single company which doesn’t want to carry out its business operations in a cost-effective manner. The space as a service business model lets a company work from shared office spaces on a need basis. Though a company does not need to maintain an office at all time but should have the options open for using an office in an emergency. Millennials are looking for temporary accommodation solutions at an affordable price, and for them, these co-living spaces or micro rentals are the best options. They don't have to pay additional expenditure on buying furniture or utilities. Instead, they can use all the facilities at a fraction of the cost.

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