The way we work has changed dramatically in recent years. Hybrid work, flexible working models, and the desire to attract quality talent have also influenced the commercial real estate market. While almost all companies were once focused on leasing classic offices, today they increasingly weigh the choice between a traditional office and a coworking space.
Which option is better? The answer depends mainly on company size, working style, and long-term business goals.
Traditional office – full control and long-term stability
A traditional lease means a company rents its own business premises, used exclusively by its employees. This solution remains most popular among medium-sized and large companies, as well as organisations where privacy and security are of key importance.
Advantages of a traditional office
More privacy and security – The company has full control over access to the premises, data protection, and work organisation. This is especially important for financial companies, law firms, IT companies, and other businesses that handle sensitive data.
Ability to customise the space – The office can be fully adapted to the company's needs – from the layout of workstations and meeting rooms to designing a space that reflects the brand's identity.
Strengthening organisational culture – Owned or leased business premises create an environment that fosters collaboration, belonging, and a long-term company culture.
Lower cost per employee for larger teams – Although initial costs are higher, for larger companies the long-term cost per employee is often lower than with coworking solutions.
Disadvantages of a traditional office
- long-term lease agreements,
- higher initial costs for equipment and relocation,
- less flexibility during rapid growth or team downsizing,
- the company alone is responsible for managing the space and operating costs.
Coworking – flexibility first
Coworking spaces offer fully equipped offices or workstations that companies rent for shorter periods. The price usually includes internet, cleaning, reception, meeting rooms, and other shared spaces.
This form of work has become especially popular since the pandemic, as it allows companies to quickly adapt to changes in employee numbers.
Advantages of a coworking space
Exceptional flexibility – A company can expand or reduce its space almost overnight, without long-term commitments.
Lower initial costs – No need to invest in furniture, IT infrastructure, or equipment. A company can start operating almost immediately.
Easy management – Maintenance, cleaning, reception, and most operational services are handled by the coworking centre's operator.
Networking and business opportunities – Coworking spaces often bring together different companies, fostering collaboration, knowledge sharing, and new business connections.
Disadvantages of coworking
- less privacy,
- limited options for customising the space,
- a less distinct company identity,
- for larger teams, it can become a significantly more expensive solution than a classic lease.
What are companies looking for today?
When searching for new business premises, companies today rarely think only in terms of square metres. What increasingly comes to the forefront includes:
- a quality location with good traffic accessibility,
- the possibility of a hybrid work model,
- modern, energy-efficient premises,
- good natural lighting,
- sufficient parking or proximity to public transport,
- quality shared spaces and meeting rooms,
- the possibility of future expansion.
More and more companies are also prioritising ESG factors. Energy-efficient buildings with lower operating costs are no longer just a competitive advantage – they are often already a business necessity.
What's most popular right now? The hybrid model.
In the Slovenian market, we are seeing more and more companies opting for a combination of both approaches.
A common example is a company renting a smaller traditional office as its main location, while occasionally using coworking spaces in other cities or countries for remote employees. Some fast-growing companies use coworking as a temporary solution until they outgrow it and move into their own or a larger leased office.
This approach allows for greater flexibility while enabling the company to maintain its identity and long-term stability.
How to choose the right solution?
When making this decision, it is worth asking a few key questions:
- How many employees does the company have today, and how many will it have in three years?
- Do employees work mostly from the office or from home?
- How important are privacy, data security, and a distinct brand identity?
- Does the company expect rapid growth or reorganisation?
- What budget is allocated for business premises?
The answers to these questions often quickly reveal which solution makes more sense in the long run.
Conclusion
There is no universally best choice. Coworking is an excellent solution for startups, smaller companies, project teams, and companies that need maximum flexibility. A traditional office, on the other hand, remains the best choice for companies that want more privacy, long-term stability, full control over their working environment, and a space that reflects their identity.
Most importantly, the business space should support the way the company works – not the other way around.
At HOOF Real Estate Advisory, we help companies analyse their needs and find business premises that support their growth, culture, and long-term business goals.
Whether you are looking for a coworking space, a classic office, or a combination of both, we help you make a well-considered decision