This article deeply explores the current status and development trends of Japan’s shared office market and its significance to overseas companies. Japan’s shared office market is experiencing rapid growth, mainly concentrated in large cities such as Tokyo, and gradually expanding to second-tier cities. Future trends include increasing demand for flexible offices, upgrading of enterprise customized services, accelerating technological integration, and deepening the concept of sustainable development.

User satisfaction surveys show that location convenience and office environment comfort are the main satisfaction factors, while privacy protection still has room for improvement. Through the cooperation cases between SoftBank and WeWork and Fabbit’s entrepreneurial ecosystem construction in Fukuoka, the potential of shared office spaces in improving efficiency and promoting innovation is demonstrated.

For companies going overseas to Japan, the article provides practical advice, including choosing a suitable location, understanding cultural differences, and taking advantage of networking opportunities. At the same time, the value of shared office to overseas companies is analyzed, as well as possible challenges and coping strategies. Finally, the article looks forward to the future development of the market, providing valuable reference information for companies interested in entering the Japanese market.

Current status of Japan’s shared office market

Japan’s shared office market is experiencing unprecedented change and growth. This emerging field reflects not only the evolution of Japanese work culture, but also the localization of global office trends in this unique market. From the rapidly growing market size to the diversified player landscape, uneven geographical distribution to Japanese-style space design, every aspect highlights the uniqueness and potential of the Japanese shared office market. Below we will provide an in-depth analysis of this dynamic market from four key perspectives.

1. Market size and growth rate

The growth rate of Japan’s shared office market is impressive and shows a strong development trend. As of the end of 2023, the market size has exceeded 150 billion yen, more than double the 70 billion yen in 2018. The average annual growth rate remains above 20%, far exceeding the growth rate of Japan’s overall real estate market. This rapid growth is driven by three key factors:

Large Japanese companies are undergoing a work style reform (“働き方 reform”), and more and more companies are beginning to adopt flexible office strategies. For example, Hitachi Manufacturing Co., Ltd. announced in 2020 that it will transfer 30% of its office space to shared office facilities, which is expected to save about 10 billion yen in real estate costs annually. This trend has become more apparent after the epidemic, and many companies have begun to re-evaluate their office space needs.

Japan’s booming startup ecosystem provides coworking spaces with a steady source of customers. According to data from Japan’s Ministry of Economy, Trade and Industry, the number of newly established companies in Japan will reach 118,000 in 2022, a year-on-year increase of 5.7%. These startups and small companies tend to opt for flexible, cost-effective office solutions.

When multinational companies enter the Japanese market, they often use shared office spaces as their initial foothold. This not only reduces entry risk, but also allows for rapid establishment of a local network. For example, the American technology giant Salesforce chose WeWork’s space in the early stages of entering the Japanese market, which enabled them to expand the team size from 10 to 100 people in less than 6 months.

The growth momentum of Japan’s shared office market is expected to continue. Yano Research Institute, an industry research organization, predicts that the market size will reach 250 billion yen by 2025. This growth will come mainly from the expansion of second-tier city markets, increased demand for flexible office space from large enterprises, and international remote workers brought in by the “digital nomad visa” program promoted by the Japanese government.

2.Major players (international brands vs local brands)

Japan’s shared office market has formed a unique pattern in which international brands and local brands coexist and complement each other, providing users with diversified choices. This competitive landscape not only promotes the rapid development of the industry, but also promotes the continuous improvement of service quality.

International brands occupy an important position in the Japanese market, with a market share of approximately 40% as of the end of 2023. Among them, WeWork, Regus and Spaces are the most representative international players. With their global operating experience and standardized high-quality services, these brands mainly attract multinational companies and Japanese companies pursuing an international office environment. For example, WeWork has 46 locations in Japan, most of which are concentrated in the core business districts of first-tier cities such as Tokyo and Osaka. Their strength lies in providing a globally consistent user experience and cross-border networking opportunities.

At the same time, local brands occupy a larger share of the market, about 55%. Major players include Fabbit, WORK STYLING (a subsidiary of Mitsui Fudosan) and TKP. These local brands have a deep understanding of Japan’s business culture and customer needs and provide more localized services. For example, Fabbit pays special attention to building an entrepreneurial ecosystem and cooperates with local governments and universities to provide incubation services for start-ups. WORK STYLING takes advantage of Mitsui Fudosan’s real estate advantages to provide high-quality shared office spaces in prime locations.

A major feature of local brands is to provide services that are in line with Japanese business practices, such as strict privacy protection measures, Japanese meeting etiquette training, and even Japanese-style lounge areas. These details have won the favor of many Japanese companies. For example, TKP’s “Business Center” concept combines elements of shared offices and traditional Japanese business clubs, and is particularly popular with small and medium-sized enterprise operators.

The remaining 5% of the market is occupied by small independent operators. These small operators tend to focus on specific industries or regions and provide highly personalized services. For example, EDITORY Toranomon in Tokyo is a shared office space specifically targeted at the media and creative industries, equipped with professional photo studios and editing rooms.

In recent years, the lines between international and local brands have been blurring. Many international brands are beginning to localize their services, while some local brands are also looking to expand overseas. For example, WeWork’s cooperation with SoftBank allows it to better adapt to the Japanese market, while Fabbit has begun to expand into the Southeast Asian market. This trend is expected to continue to deepen, driving the Japanese shared office market to develop in a more mature and diversified direction.

3. Geographic distribution (large cities vs second-tier cities)

The geographical distribution of shared office spaces in Japan shows obvious “core concentration, peripheral expansion” characteristics, which not only reflects Japan’s unique economic and geographical pattern, but also shows the trend of the shared office concept gradually becoming popular across the country.

In terms of core cities, Tokyo is undoubtedly the absolute center of Japan’s shared office market. As of the end of 2023, the Tokyo metropolitan area (including Tokyo, Kanagawa, Saitama and Chiba prefectures) holds 58% of the country’s shared office spaces. This highly concentrated phenomenon is closely related to Tokyo’s status as the political, economic, and cultural center of Japan. Tokyo’s shared office spaces are mainly concentrated in several core business districts: Marunouchi-Otemachi area, Roppongi-Akasaka area, and the emerging Shinagawa-Tamachi area. These areas not only have convenient transportation, but also gather a large number of domestic and foreign corporate headquarters, providing a stable source of customers for shared office spaces.

Followed by Osaka and Nagoya, accounting for 15% and 10% of the national market respectively. As the economic center of the Kansai region, Osaka’s shared office spaces are mainly distributed in business districts such as Umeda and Namba. Nagoya, relying on its advantages as a manufacturing base, has attracted many companies related to the automotive, aviation and other industries to settle in shared office spaces.

These three metropolitan areas together account for 83% of Japan’s shared office market, reflecting the high concentration of Japan’s economic activities. However, this concentration also brings challenges, such as high rents and high spatial saturation in core areas.

At the same time, the shared office market in second-tier cities is showing impressive growth. The market share of cities such as Fukuoka, Sapporo, Sendai, and Hiroshima will increase from 10% in 2018 to 17% in 2023. This trend is related to several factors:

• The local creation policy promoted by the Japanese government has injected new vitality into second-tier cities. For example, Fukuoka City has greatly simplified the business establishment process by establishing an “Entrepreneurship Zone” and attracted a large number of entrepreneurs.
• The popularity of remote work has caused the flow of talent to livable cities. Sapporo attracts many IT practitioners with its good quality of life and relatively low cost of living.
• Large enterprises have begun to transfer some functions to second-tier cities to reduce operating costs. For example, the Rakuten Group announced in 2023 that it will establish a new development center in Sendai City.
• Local governments in second-tier cities are actively introducing the concept of shared offices to promote local innovation and entrepreneurship. The Hiroshima City Government has partnered with WeWork to open a large shared office space in the city center.

It is expected that by 2025, the market share of second-tier cities will further increase to about 25%. This decentralization trend not only helps balance Japan’s economic geography but also provides new growth opportunities for coworking operators.

However, development is uneven among cities. Fukuoka and Sapporo are growing significantly faster than other second-tier cities, which is related to the policies of these two cities in attracting young talents and promoting innovation. In the future, how to replicate this successful model in other second-tier cities will be a topic that shared office operators and local governments need to explore together.

4. Shared office space with Japanese characteristics

One of the hallmarks of Japanese coworking spaces is their successful blend of traditional and modern elements to create a uniquely charming local style. This unique design concept not only satisfies Japanese companies’ recognition of traditional culture, but also provides international companies with an immersive Japanese cultural experience.

In terms of space design, many shared office spaces adopt the concept of “Chinese and Western eclectic”. For example, some WeWork locations in Tokyo use traditional shoji doors as conference room partitions, which not only retains the beauty of Japanese architecture, but also increases the transparency of the space through a translucent design. Another TOKYO cleverly combines a tatami seating area with a modern open office area in its space in Ginza to create a unique visual contrast.

The use of color also reflects Japanese characteristics. Many spaces use traditional Japanese colors, such as indigo blue, matcha green, etc., creating a calm and Zen atmosphere. In terms of material selection, natural wood, Japanese paper, and bamboo products are widely used. This not only conforms to the Japanese preference for natural materials, but also echoes the global pursuit of sustainable office environments.

In terms of functional settings, Japanese shared office spaces pay special attention to detail services and fully consider Japan’s unique business culture and work habits:

• “Phone booth” culture: Taking into account the privacy needs of Japanese people when talking in public places, many spaces have set up “phone booths” with good sound insulation. For example, SPACES Yuchengmen’s “phone booth” adopts the shape of a traditional phone booth, but is equipped with modern video conferencing equipment inside.
• Tea ceremony experience area: Some high-end shared office spaces such as Daimyo CONNECT provide dedicated tea rooms, which can not only be used for informal meetings, but also regularly hold tea ceremony experience activities to promote social interaction among members.
• “Napping pod”: In response to the “inemuri” (nap) tradition in Japanese workplace culture, some spaces, such as Nap Labo in Yaesu, Tokyo, are equipped with special nap facilities to allow workers to restore energy in a short period of time.
• Business etiquette support: Many spaces provide Japanese business etiquette training services, including the correct way to exchange business cards, meeting etiquette, etc., to help international companies better integrate into Japanese business culture.
• Connecting with local business networks: Local brands such as Fabbit pay special attention to building a local business ecosystem and regularly organize exchange activities with local companies and government departments to create business opportunities for settled companies.

Japanese shared office spaces also show uniqueness in the application of technology. For example, the shared office space of the Mori Nosha Martial Arts Association Building adopts an access control system based on blockchain technology, which not only improves security but also lays the foundation for possible cross-space use. For another example, DMM.com has applied AI robots in its shared office space. It is not only used for basic reception work, but can also assist in booking conference rooms and answer simple business inquiries.

This design concept that combines tradition and modernity and pays attention to details makes Japanese shared office spaces unique in the international market. Not only does it improve user satisfaction, it has also become a major selling point for international businesses. As the Japanese government promotes the “Cool Japan” strategy, this unique office space design is expected to become another business card of Japan’s cultural soft power.

Future development trends

As a rapidly developing stage of the Japanese shared office market, its future trends not only reflect the changes in global office methods, but also reflect Japan’s unique socio-economic environment and cultural background. The following four key aspects of the report explore in detail the future development trends of the Japanese shared office market, which will profoundly affect the market structure, service models and user experience.

1. Increased demand for flexible offices

Japanese society is undergoing profound changes in the way we work, and the changes will directly drive a substantial increase in the demand for flexible offices. The labor market share of flexible office space in Japan’s commercial real estate market is currently expected to grow by 3% to 8% by 2026. This trend is mainly driven by the following factors:

The Japanese government vigorously promotes “working style reform”. The move aims to increase labor productivity and improve work-life balance, including encouraging companies to adopt flexible working methods such as flexible working systems and telecommuting. Coworking spaces provide external development opportunities. For example, Hitachi has formulated a plan to transfer 30% of office space to shared office facilities after implementing work style reforms, saving about 10 billion yen in real estate every year.

The COVID-19 epidemic has accelerated the popularity of remote working. According to a survey by Japan’s Ministry of Internal Affairs and Communications, the proportion of remote working among large Japanese companies has reached more than 50% in 2023. This trend is expected to continue, driving companies to re-evaluate their office space needs. Many companies are considering a “hub + satellite” office model, which maintains a smaller central office while using shared office spaces as satellite offices in different locations. .

Japan is facing serious population aging and labor shortage problems. In order to attract and retain talent, especially the younger generation, companies are looking for more flexible and modern office solutions. Shared office spaces can provide this flexibility while also catering to the speech needs of different employees.

The Japanese government is promoting a “digital nomad visa” program aimed at attracting international remote workers. This is expected to attract new customer groups to coworking spaces, especially in more international cities such as Tokyo and Osaka.

With these factors in mind, coworking operators need to be prepared to meet a significant increase in demand. This may include increasing scale, optimizing space utilization efficiency, providing more trustworthy user solutions, etc. At the same time, operators also need to consider how to balance the needs of short-term airports and long-term hubs to ensure business continuity.

2. Enterprise customization services

As the shared office market matures, simply providing standardized office space has met urgent customer needs. In the future, enterprise customized services will become a key point of differentiation in market competition. This trend is mainly reflected in the following aspects:

• The customer needs of large enterprises will drive the development of customized services. These businesses not only require flexible office space, but also solutions that reflect their corporate culture and support specific workflows. For example, Japan’s Dentsu Group has cooperated with WeWork to set up a creative center in Tokyo. The space design and facility configuration are optimized for advertising creative work. This in-depth customization not only improves employee satisfaction, but also enhances the corporate brand image.
• Industry specialization will become an important trend. Some coworking space operators are beginning to focus on serving specific industries, such as technology, finance or the creative industries. For example, Finolab in Tokyo specializes in servicing financial technology companies, providing not only office space but also value-added services such as industry expert guidance and regulatory compliance support. Industry specialization enables operators to gain a deeper understanding of customer needs and provide more valuable services.
• Coworking spaces will increasingly take on the role of corporate innovation hubs. Many large Japanese companies are looking to collaborate with many companies to promote internal innovation. Coworking spaces can be an ideal platform for this kind of collaboration. For example, large companies may set up dedicated innovation labs in shared office spaces to provide access to the entrepreneurial ecosystem and a certain degree of independence.
• Cultural trade services will become an important factor in attracting international businesses. As more multinational companies are required to enter the Japanese market, they have services that can help them quickly adapt to Japanese business culture. This may include Japanese business training, Japanese business etiquette guidance, local business network connection, etc.
• Health and well-being services will become a direction of customization. Japanese society attaches great importance to health. Especially after the epidemic, the physical health of employees has become an important medical concern for enterprises. Coworking spaces may offer customized wellness programs such as yoga classes, meditation spaces, healthy eating guidance, and more.

To achieve this high degree of customization, coworking space operators need to invest in data analytics capabilities to develop a deep understanding of individual customer needs. At the same time, cooperation with industry experts and services will become increasingly important. The trend of globalization will drive the shared office industry to transform from a single space provider to a complete office solution provider.

3. Technology integration

Technology integration will play a central role in the future development of the Japanese coworking market. As one of the world’s leading countries in technological innovation, Japan’s shared office spaces are rapidly adopting and integrating various advanced technologies to enhance user experience, optimize operational efficiency, and create new value collaborations. This technology integration trend is mainly reflected in the following aspects:

Intelligent space management systems will become more common and advanced. Leveraging Internet of Things (IoT) sensors and artificial intelligence (AI) technology, operators can achieve more granular space utilization management. For example, some WeWork sites in Tokyo have begun to use AI algorithms to predict different space needs to dynamically adjust space layout and service staffing. This not only improves space utilization efficiency, but also improves user experience.

Augmented reality (AR) and virtual reality (VR) technologies will bring new possibilities to remote collaboration. As the concept of the metaverse becomes popular, some cutting-edge shared office spaces are exploring how to seamlessly combine physical space with virtual environments. For example, a special project between SoftBank and WeWork allows users to “visit” office spaces in different cities through VR devices to participate in virtual meetings or workshops. This technology not only breaks geographical restrictions, but also provides users with a new social and collaborative experience.

Biometrics will play an important role in security and personalized services. Technologies such as face recognition and fingerprint recognition can not only be used in contactless access control systems, but can also achieve personalized space settings. For example, when a user enters an office area, the system can automatically adjust environmental parameters such as lighting and temperature to the user’s preferred settings. A high-end shared office space in Tokyo has started an active topic system and received feedback from users.

The shared office space brought by 5G technology brings new opportunities. Ultra-high-speed, low-latency network connections will support more high-bandwidth applications, such as 4K/8K video conferencing, real-time 3D rendering, etc. This allows shared office spaces to attract more businesses that rely on the Internet, such as game development, visual effects production and other industries.

In addition, blockchain technology has also begun to find applications in the field of shared offices. For example, using smart contracts to manage space reservations and payments can not only improve the transparency and efficiency of transactions, but may also give rise to new business models, such as cross-platform office space sharing networks.

Personalized services driven by artificial intelligence will become the key to differentiated competition. AI assistants can provide users with personalized work suggestions, learning resource recommendations, and even help with simple task planning. This kind of personalized service will greatly improve users’ work efficiency and satisfaction. However, technology integration also brings some challenges, such as data security and privacy protection issues. Japan has very strict requirements for the protection of personal information, and shared office space operators need to ensure full compliance with relevant regulations while providing innovative services.

To sum up, technology integration will cultivate the service model and user experience of Japan’s shared office market. Those operators that can effectively utilize technological innovation while balancing user needs and privacy protection will gain an advantageous position in future market competition.

4. sustainable development direction

Sustainability has become a global focus, with the Japanese shared office market being an exception. As a country that attaches great importance to environmental protection and social responsibility, Japan’s shared office spaces are actively exploring how to strike a balance between commercial success and sustainable development. This trend is mainly reflected in the following aspects:

Green building standards will become a core consideration in the design and operation of coworking spaces. More and more projects are applying for certifications such as LEED (Leadership in Energy and Environmental Design) or CASBEE (Comprehensive Evaluation System for Building Environmental Efficiency, Japan’s local green building certification). For example, a WeWork platform located in Marunouchi, Tokyo, obtained LEED Platinum certification, which not only reduced operating costs but also improved the brand image. In the future, we may see more shared office spaces using renewable energy and adopting smart energy management systems.

Circular economy concepts will be more widely evaluated in space design and furniture selection. Some cutting-edge coworking spaces are already using furniture made from recycled materials or adopting standardized designs to facilitate future renovation and recycling. For example, Impact HUB in Tokyo uses a large number of office furniture made of recycled plastic, which not only creates a unique aesthetic style.

Coworking spaces will increasingly believe in their role as community sustainability hubs. Many spaces have begun to organize activities such as environmental protection lectures and sustainable entrepreneurship incubation projects to promote the spread of sustainable development concepts in the business community. For example, the Sustainability Center in Osaka not only provides office space, but also regularly holds workshops and entrepreneurial competitions on the SDGs (Sustainable Development Goals).

The sharing economy model itself is a sustainable business practice. By improving space utilization efficiency, coworking can reduce overall building requirements, thereby reducing the environmental impact of urban development. In the future, we may see more shared office projects combined with urban planning, such as converting idle public buildings into shared office spaces.

In terms of social sustainability, shared office spaces still play a positive role. Many spaces are exploring how to promote communication and cooperation between people from different backgrounds and industries. For example, some coworking spaces in Tokyo have begun to offer “skills exchange” platforms that encourage the sharing of expertise among members, which not only promotes community building but also provides opportunities for lifelong learning.

Health and well-being will become a strategic and important part of sustainable development. More and more shared office spaces are beginning to focus on how to promote users’ health through design and services. This could include introducing more natural elements (such as indoor plants on the walls), providing meditation spaces, or even working with health services to provide members with regular health checks and consultations.

Promoting sustainable development also faces some problems, such as cost issues. Many sustainable development practices may increase operating costs in the short term. How to quantify and communicate the value of sustainability efforts so that they become an effective competitive advantage in the marketplace.

User satisfaction survey

User satisfaction is a key indicator of the success of a coworking space. Through in-depth analysis of user feedback, we can understand not only the current quality of service, but also the direction of future development. The following is a comprehensive analysis of user satisfaction in the Japanese shared office market from four aspects: overall satisfaction, main satisfaction indicators, areas that need improvement, and changing trends in user needs.

1. overall satisfaction

The overall user satisfaction in the Japanese shared office market shows an upward trend. According to the latest market survey data, the average satisfaction level of Japanese shared office space users in 2024 will reach 8.2 points (out of 10 points), compared with 7.9 points in 2023. This data not only reflects the global average, but also reflects the Japanese shared office space Continuous improvement of service quality.

The analysis shows that there are certain differences in the satisfaction of different types of users. Freelancers and small entrepreneurial teams have the highest satisfaction scores, averaging 8.5 points. This is mainly due to shared office spaces, as they provide a professional office environment and social networking. The satisfaction of SME users followed, reaching 8.3 points, and they particularly value the flexibility and cost efficiency of shared office spaces. The satisfaction level of large enterprise users is relatively low at 7.8, which may be related to their higher requirements for customized services and security.

Satisfaction levels also vary across regions. User satisfaction in large urban areas such as Tokyo and Osaka is generally higher than in other areas. This may be due to the large number of shared office spaces in these areas and fierce competition, resulting in higher service quality. However, with the promotion of the shared office concept nationwide, , regional differences are gradually narrowing.

2. Analysis of main satisfaction factors

Location convenience is the most important factor for users. Most shared office spaces in Japan are located near transportation hubs to facilitate employees’ commuting and business trips. For example, many coworking spaces in the Tokyo area are located along the Yamanote Line, which not only allows employees to commute to and from get off work, but also provides companies with a good business address.

The quality of the working environment is highly recognized by users. The attention to detail common in Japanese coworking spaces, from ergonomics to personalized lighting systems, reflects the emphasis on user experience. Many spaces also incorporate Japanese design elements, such as conference rooms and meeting rooms, to create unique work dynamics. The pursuit of quality not only improves work efficiency, but also meets users’ needs for comfort.

Social networking opportunities are another important satisfaction factor. Shared office spaces in Japan often organize various social activities, such as industry forums, entrepreneurial salons, etc., to provide members with a platform for communication and learning. This not only helps individuals and companies expand their personnel networks, but also creates opportunities for cross-industry collaboration. For example, a survey showed that more than 40% of users said they had met important business partners through shared office spaces.

Flexible contract terms are also an important reason for user satisfaction. Faced with an uncertain economic environment, companies are paying more and more attention to cost control and risk management. Coworking spaces offer short-term leases and flexible space adjustment options that are well suited to meeting this need. Data shows that about 60% of users believe that shared office spaces can help them reduce office costs.

The quality of technical and support services has also been rated well by users. Shared office spaces in Japan are generally equipped with high-speed and stable networks, advanced video conferencing systems and other facilities. Many spaces also provide value-added services such as IT support and administrative assistants, which are crucial for small and medium-sized enterprises and entrepreneurs who do not have dedicated logistics teams.

3. Areas for improvement

Despite this overall, user surveys also revealed some areas for improvement. If these problems are effectively solved, user experience and market competitiveness will be further improved.

Privacy and security are top concerns for users. In Japan, a society that attaches great importance to privacy, many users are worried about information security in an open office environment. While most coworking spaces have taken measures, coworking spaces may need to consider introducing more advanced coworking space technology or designing more enclosed work style areas.

There is room for improvement in personalized and customized services. As the market matures, user demands are increasing day by day. For example, some companies want to create a unique environment in a shared office space that matches their corporate culture. About 40% of enterprise users said they would consider long-term leasing if more space customization options were provided. This means coworking space operators need to find a balance between standardization and personalization.

The problem of resource constraints exacerbated by peak times also needs to be addressed. The survey shows that about 25% of users have encountered difficulties in booking meeting rooms or crowded public areas. This is mainly because shared office spaces are not flexible enough in resource allocation. In the future, operators may need to adopt smarter booking systems or consider implementing dynamic pricing strategies to balance demand.

Some users reported that there is room for improvement in the quality and frequency of community activities. Although social networking opportunities are an important factor in attracting users, about 35% of users expressed a desire to participate in higher-quality, higher-quality industry events. This means that shared office spaces need to have a deeper understanding of user needs and provide more valuable community activities.

Some users raised the need for long-term development support. Especially for start-up companies, in addition to office space, they also hope to receive more business development support, such as legal consulting, financing matching and other services. About 20% of entrepreneurial teams said that if they could provide such value-added services, their satisfaction and loyalty would be greatly improved.

4. Changes in user needs

With the development of the market and changes in the social environment, the needs of shared office space users are constantly changing. Grasping these changing trends is critical to the long-term development of coworking spaces.

We are observing rising demand for support for hybrid office models. As remote working becomes more popular, more and more companies are adopting a hybrid mode of working. This means coworking spaces need to offer more flexible usage plans, such as options to rent by the day or by the hour. At the same time, it is also necessary to strengthen technical support for remote collaboration, such as providing high-quality video conferencing equipment and virtual office solutions.

Health and well-being are becoming the focus of users. Affected by the increasing global health awareness, about 50% of users expressed their desire to incorporate more healthy elements into the office environment. This includes ergonomic design, indoor air quality control, fitness facilities. Some leading coworking spaces have started offering services such as yoga classes, meditation rooms, etc. with positive feedback.

The concept of sustainable development has received urgent attention. More than 60% of users said they would prefer to choose a shared office space that adopts environmentally friendly measures. This demand is not only reflected in hardware facilities, such as energy-saving design, use of recyclable materials, etc., but also includes expectations for sustainable development themed activities and communities.

Additionally, the need for specialization and industry specialization is growing. As the market refines, some users are beginning to look for shared office spaces that can meet the needs of specific industries. For example, a tech startup may need a studio equipped with 3D printing equipment, while a creative industry may require a professional photography studio. About 30% of users said they would consider paying higher fees if there were shared office spaces customized for their industry.

The demand for digitalization and standardized services continues to grow. Users increasingly expect to be able to easily manage their office experience through mobile apps, from booking conference rooms to casual office settings to participating in community events. About 70% of users said that a highly digital service experience will significantly improve their satisfaction.

Case studies

In order to gain a deeper understanding of the development trends and innovative models of the Japanese shared office market, we selected two representative cases for in-depth analysis. Demonstrate the practical application of shared office space in Japan and look at the unique strategies of companies in different regions and sizes. Through these cases, we can better grasp market trends, gain insights into success factors, and provide valuable references for future development.

1. SoftBank and WeWork cooperation case

The cooperation case between SoftBank and WeWork is an important milestone in the development of Japan’s shared office market. This case not only demonstrates the strategy of international political parties to enter the Japanese market, but also reflects the acceptance of innovative office models by Japanese companies. By analyzing this case, we can gain an in-depth understanding of the role of cross-border cooperation in promoting the development of the Japanese shared office market.

In 2017, Japan’s shared office market is still in its early stages of development, but has huge growth potential. As Japan’s most innovative technology investment company, SoftBank is keenly aware of this opportunity. At the same time, WeWork, an American shared office organization, is seeking global expansion and setting its sights on the Asian market. The strategic needs of both parties fit perfectly here.

SoftBank’s goal is to leverage WeWork’s international experience and brand influence to quickly establish a high-quality shared office network in Japan while providing flexible office solutions for its portfolio companies. WeWork hopes to quickly open up the Japanese market by cooperating with local companies and establish a difficult market. This mutually beneficial and win-win cooperation goal lays the foundation for subsequent successful implementation.

SoftBank and WeWork have established a joint venture company “WeWork Japan”, with SoftBank holding 50% of the shares. This structure not only ensures WeWork’s dominance in operational management, but also makes full use of SoftBank’s investment resources and localization advantages in the Japanese market.

During the implementation process, both parties adopted an aggressive expansion strategy. WeWork leveraged its mature space design and community operation model to quickly implement multiple shared office spaces in major cities such as Tokyo. SoftBank has used its influence in Japan’s commercial real estate sector to help WeWork obtain high-quality office locations. In addition, SoftBank has also mobilized its extensive corporate network to encourage a large number of invested companies and partners to use WeWork’s office space.

In terms of localization, WeWork Japan has made the proposed adjustments. For example, considering the importance Japanese companies attach to privacy, more closed office areas have been added; Japanese design elements, such as Japanese-style conference rooms, have also been incorporated to meet the aesthetic needs of local users. This integration of international and local standards and features maximizes user acceptance.

SoftBank’s partnership with WeWork has achieved significant results in the short term. As of 2024, WeWork has more than 50 locations in Japan, becoming one of the largest shared office space operators in Japan. This not only brought considerable revenue to WeWork, but also greatly increased SoftBank’s influence in the innovative office field.

More importantly, this cooperation has had an inevitable impact on Japan’s global shared office market. It accelerates the maturity of the market and increases awareness and acceptance of shared office spaces. Many traditional Japanese companies have begun to experiment with shared office spaces, driving the transformation of the entire commercial real estate industry.

Secondly, the entry of WeWork has also driven the development of local brands. In order to cope with the challenges of international brands, Japan’s local shared office brands have increased investment and improved service quality. Ultimately, users in the entire market will benefit.

This cooperation case has injected new vitality into Japan’s technological innovation ecosystem. The entrepreneurial community formed within the WeWork space provides valuable communication and cooperation opportunities for many companies, and promotes the collision of innovative ideas and the innovation of business models. However, this case also exposed some challenges. As the market gradually penetrates, how to maintain profitability becomes an important issue. In addition, how to maintain service quality while rapidly expanding and how to better adapt to Japanese business culture are issues that require continued attention.

2. Fabbit’s entrepreneurial ecosystem construction in Fukuoka

Compared with the national strategies of SoftBank and WeWork, Fabbit’s case in Fukuoka shows how regional shared office spaces can deeply participate in the construction of local innovation ecosystems. This case not only reflects the potential of Japan’s second-tier cities in innovation and entrepreneurship, but also provides valuable experience for shared office space operators in other regions.

Fabbit is a local shared office space brand in Japan. In 2017, it launched an ambitious project in Fukuoka City to create a comprehensive entrepreneurial ecosystem. This project not only provides office space, but also integrates various resources based on the needs of entrepreneurs, including incubators, venture capital funds, corporate services, etc., to build a complete entrepreneurial support system.

The project is located in the Tenjin Business District in the center of Fukuoka and is expected to exceed 3,000 square meters. The space design combines sensibility and local characteristics, with open collaboration areas and independent offices, as well as activities and creations. Fabbit’s goal is to attract and cultivate high-potential entrepreneurial projects through this project, and promote Fukuoka City and the entire Kyushu region. innovative development.

Fabbit adopts a multi-party cooperation model to achieve its goals. Established a close cooperative relationship with the Fukuoka City Government. The city government not only provides policy support, such as simplifying startup procedures and providing tax incentives, but also assists Fabbit in connecting with various local resources. Fabbit has established strategic partnerships with many large enterprises. These companies not only become corporate members of Fabbit Space, but also actively participate in the incubation and investment of innovative projects. For example, local financial institutions provide special financing programs for settled startups, and manufacturing unions provide technical support and production resources for hardware startup projects.

In addition, Fabbit has also established close ties with universities in Fukuoka, such as cooperating with Kyushu University to offer entrepreneurship courses to provide students with internship and entrepreneurial opportunities. This industry-university-research cooperation model has greatly enriched Fabbit’s talent pool and source of innovation.

Fabbit’s success in Fukuoka can be attributed to a few key factors :

• Accurate market positioning. As a central city in the Kyushu region, Fukuoka has a good entrepreneurial environment and policy support, but it lacks a systematic entrepreneurial ecosystem. Fabbit does exactly that with a blank slate.
• Comprehensive service system. Fabbit not only provides high-quality office space, but also provides comprehensive support to entrepreneurs, including legal consulting, financial management, marketing and other professional services. This comprehensive service greatly lifts the operational burden on entrepreneurs, allowing them to focus more on product development and business growth.
• Enhanced community building capabilities. Fabbit promotes communication and cooperation among members by organizing various activities, such as entrepreneurial salons, technical lectures, investment matchmaking meetings, etc. This active community atmosphere not only enhances members’ sense of belonging, but also creates valuable social capital for entrepreneurs.
• Fabbit’s local strategy also plays an important role. It deeply understands and makes full use of Fukuoka’s local characteristics and advantages, such as combining local traditional craftsmanship with modern technology, and has spawned a number of distinctive innovative projects.

Fabbit’s projects have had an inevitable impact on the innovative development of Fukuoka and even the entire Kyushu region. First, it significantly increases entrepreneurial activity in Fukuoka. According to statistics, since the launch of the project, the annual average number of new start-up companies in Fukuoka has exceeded 15%, which is far lower than the national average. Fabbit has cultivated a number of high-quality innovative enterprises. As of 2024, more than 200 high-quality companies have received investment from Fabbit incubation, many of which have made breakthroughs in cutting-edge fields such as artificial intelligence and biotechnology. These successful cases not only inject new vitality into the local economy, but also enhance Fukuoka’s innovative image nationally and internationally. Fabbit’s projects also promote industrial transformation. By connecting traditional enterprises with innovative entrepreneurs, a number of cross-border innovation projects have been spawned, injecting new development impetus into Fukuoka’s traditional industries. For example, a traditional textile company successfully developed a new generation of functional fabrics and opened up a new market by cooperating with innovative entrepreneurs and a smart wearable device team incubated by Fabbit. Fabbit’s success is spreading to other regions. Several second-tier Japanese cities are copying Fabbit’s model and establishing their own innovation centers. This not only promotes the development of innovation and entrepreneurship in Japan, but also makes empirical contributions to the balanced development of the overall regional economy.

Suggestions for Japanese companies going overseas

Against the background of the booming shared office market in Japan, more and more Chinese companies have made Japan an important destination for overseas expansion. However, due to differences in culture, business environment, and laws and regulations, these companies often enter the Japanese market. In order to help these overseas companies make better use of Japan’s shared office spaces and achieve smooth landing and rapid development, we make the following suggestions. These recommendations are based on in-depth research on the Japanese market and analysis of numerous successful cases, and are designed to provide practical guidance for businesses.

1. Select location

For overseas companies, choosing a suitable office location is the first step to success. In Japan, there are obvious differences in the business environment and talent structure between different regions and cities, so it is necessary to choose the most suitable location based on the specific needs and development strategies of the company.

Companies should consider the nature of their business and target markets. For example, if the company mainly targets the domestic market of Japan, then choosing shared office spaces in economic centers such as Tokyo and Osaka may be more conducive to business development. These areas are not only rich in business resources, but also have easy access to potential customers and partners. In addition, if the company focuses on technology research and development or faces the global market, it can choose some second-tier cities, such as Fukuoka, Sapporo, etc. These cities tend to have lower operating costs and more innovative environments.

Accessibility is also an important factor. Japan’s public transportation system is very developed. Choosing a shared office space close to major stations can greatly improve work efficiency and make it convenient for employees to commute and customers to visit. Many high-quality coworking spaces are located near transportation hubs, which not only facilitates daily operations, but also helps attract and retain employees.

Enterprises should also consider surrounding supporting facilities. For example, if a company needs to frequently receive overseas customers, it will be more convenient to choose a location close to an international airport or a business hotel. If a business values ​​employee welfare, then a location with good dining, shopping and entertainment facilities nearby may be more popular.

2. Understand cultural differences

When entering the Japanese market, it is crucial to understand and adapt to the local business culture and social etiquette. Japanese business culture has its own unique features, such as the emphasis on hierarchy, collective emphasis on decision-making, and emphasis on coordination relationships. These characteristics are also touched upon in the use of shared office spaces.

Companies should pay attention to office etiquette. For example, Japanese office environments are often quiet, even in open-plan shared spaces. Therefore, corporate employees should pay attention to the need to control the volume of conversations to avoid disturbing others. At the same time, Japanese people attach great importance to punctuality and punctuality. Whether it is a work meeting or a social event, you should arrive on time.

When dealing with Japanese partners or account assistants, be respectful. For example, Japanese people usually exchange prepared business cards when they meet for the first time, and this process is regarded as a formal etiquette. Employees of overseas companies should prepare Japanese versions of business cards and submit and receive business cards in four ways.

Japan’s decision-making process is often slow and requires consensus among multiple parties. This means that in business negotiations or cooperation, you need to be patient and give the other party sufficient time for internal discussions and decisions. At the same time, the Japanese place great emphasis on long-term relationships, so the process of building trust and maintaining relationships may take longer than expected.

Businesses should also be aware of some cultural taboos. For example, in Japan, it is considered immoral to say “no” directly, and they prefer to express rejection in a tactful way. Understanding these subtle ways of communicating can help companies better integrate into the local business environment.

3. Take advantage of networking opportunities

One of the biggest advantages of working in a quick shared space is the wealth of social and networking opportunities it provides. For companies that have just entered the Japanese market, these opportunities are extremely valuable and can help them establish local relationships, obtain market information, and even find potential customers and partners.

Businesses should actively participate in various activities organized by shared office spaces. These activities may include industry lectures, entrepreneurial sharing sessions, social receptions, etc. Through these activities, companies can not only learn about the latest market dynamics and industry trends, but also get to know professionals from different backgrounds. In Japan, people play an important role in business success, so the establishment of this social network is crucial to the long-term development of a business.

Businesses can proactively communicate with other members of the shared office space. Many coworking spaces have communal break areas or cafés, which are great places for day-to-day interaction. Much valuable local market information and local opinions can be learned through informal conversations. At the same time, this is also a good opportunity to practice Japanese and learn about Japanese culture.

In addition, some shared office spaces also provide member-exclusive online platforms or APPs. Enterprises should make full use of these tools, proactively showcase their business and look for potential cooperation opportunities. Some platforms even provide matching services to help companies find the most suitable business partners.

Businesses can also consider hosting their own events in a coworking space. This not only increases the visibility of the business, but also attracts potential value from customers and partners. Many shared office spaces have event venues that can be rented, and companies can use these resources to host product launches, technology exchange meetings, and other events.

4. Flexible choice of membership plans

Shared office spaces in Japan usually offer various types of membership plans, from temporary workstations to dedicated offices, from hourly rates to long-term leases. For overseas companies, choosing a suitable membership plan can effectively control costs while meeting the needs of business development.

Enterprises should choose the appropriate plan based on their development stage and business needs. For example, if your company is new to the Japanese market and has a smaller team, you can choose a more flexible plan such as shared workstations or small private offices. This reduces initial fixed costs while maintaining flexibility. As your business grows, you can gradually upgrade to a larger office space.

Businesses need to compare the services offered by different coworking spaces. Some plans that appear more expensive may include more value-added services, such as free use of conference rooms, business reception services, mail processing, etc. These services may be particularly valuable for businesses new to the human market and can help the business quickly establish a professional image.

Businesses should think about overall and business activity. Some coworking spaces in Japan offer flexible short-term leases or continuous use options. It is very beneficial for these companies with active business, which can temporarily increase work stations during intermittent periods and reduce expenses during the off-season.

Enterprises also need to pay attention to the details of contract return, such as deposit requirements, rental conditions, additional fees, etc. Contracts in Japan are often very strict, so all terms need to be read carefully and understood before signing. If there is a festival venue, it is best to seek professional legal advice.

5. Pay attention to privacy protection

Protecting company and customer privacy in a shared office environment is a concern, especially in a country like Japan that places a high emphasis on information security. Overseas companies need to take important necessary measures to ensure that their business secrets and customer information will not be threatened because they will not share office spaces.

Businesses should choose shared office spaces with good security measures. This includes physical security (e.g. access control systems, surveillance cameras) and network security (e.g. encrypted WiFi, firewall protection). Some high-end coworking spaces even offer dedicated secure storage or safes where you can store important documents.

Enterprises need to formulate and strictly implement internal information security policies. For example, when working in open workstations, employees should use screen protectors to protect information from prying eyes. When handling sensitive documents, a shredder should be used for prompt communication. devices, should set strong passwords and use encryption software to protect important data.

Extra caution is also required when using shared meeting rooms or printing equipment. For example, clean the whiteboard and record the meeting promptly after the meeting, and ensure that printed documents are taken away promptly when using a shared printer. Some coworking spaces offer privacy features, such as conference room office facilities, and businesses should take full advantage of these facilities.

Businesses also need to be aware of Japan’s data protection regulations. Japan has strict personal information protection laws, and companies need to be cautious when handling the personal information of customers or employees. It is recommended that companies understand relevant laws and consult legal experts when necessary to ensure that their practices comply with Japanese legal requirements.

By carefully considering these factors and taking appropriate measures, companies can make better use of shared office spaces in Japan and fully enjoy the convenience and opportunities brought by shared offices while protecting their own interests. This can not only help companies reduce operating costs and improve flexibility, but also lay a solid foundation for their long-term development in the Japanese market.

The value of shared office to overseas companies

In the context of a globalized economy, more and more companies are choosing to expand their businesses to overseas markets. However, international operations face many challenges, such as high initial investment, complex local regulations, cultural differences, etc. In this case, shared office space, as an innovative office solution, provides an extremely attractive option for overseas companies. It can not only help enterprises effectively control costs, but also provide enterprises with flexible development space and localized support, while creating a good environment for enterprises to build business networks. Below we will discuss in detail the four main values ​​of shared offices for overseas companies.

1. cost optimization

For companies that have just entered a new market, controlling costs is one of the primary considerations. Shared office space provides a highly cost-effective solution for overseas companies, helping them significantly reduce operating costs in the early stages.

Shared office spaces can help businesses avoid high upfront investments. Traditional office methods usually require companies to pay a lot of renovation costs, purchase office equipment, and may even require security deposits for long-term leases. In contrast, shared office spaces are already equipped with complete office facilities, and companies can move in directly and use them without additional investment. This not only reduces the initial financial pressure, but also reduces the risk of enterprises entering new markets.

Shared office space rentals are often more flexible and economical than traditional offices. Enterprises can choose different types of workstations or offices according to their own needs and only pay for the space actually used. This pay-as-you-go model is particularly suitable for start-ups or companies that are exploring the market and can effectively control fixed costs. Additionally, many coworking spaces offer short-term lease options, which further increases a business’s financial flexibility.

Shared office spaces usually include a number of value-added services, such as reception, email processing, cleaning and maintenance, etc. If these services are handled by the company itself, it will not only require additional labor costs, but may also distract the company’s energy. By using shared office spaces, companies can outsource these non-core operations, allowing them to concentrate resources on the development of their core businesses.

Co-working spaces are often located in prime locations in cities where businesses may have to pay high rents if leased independently. By choosing shared office space, companies can obtain a high-quality office address at a relatively low cost, enhance their corporate image, and at the same time enjoy convenient transportation and surrounding supporting facilities.

2. Flexibility and scalability

When entering a new market, it is often difficult for companies to accurately predict the speed and scale of business development. The flexibility and scalability of shared office space can exactly meet the needs of overseas enterprises at different stages of development, providing an ideal solution for the growth of enterprises.

Shared office spaces provide a variety of office options, from single workstations to large team offices, to virtual office services. Enterprises can choose the most suitable solution based on actual needs. This diversity allows companies to adjust the office size at any time according to business development, avoiding the problems of wasted or insufficient space that may occur in traditional office models.

Most coworking spaces offer flexible lease options, ranging from hourly rates to long-term leases. This flexibility is especially important for overseas companies, as it may take them some time to assess market potential and adjust business strategies. Short-term leases allow businesses to quickly enter the market and start operating without taking on long-term financial risk.

As your business grows, you may need to expand your team or increase your office space. Under the traditional office model, this often means finding a new office location and relocating, which is not only time-consuming and labor-intensive, but may also affect business continuity. In a shared office space, companies can easily add workstations or upgrade to a larger office. The entire process can be completed within the same office community, greatly reducing the trouble and interruption during the expansion process.

Many coworking spaces offer global networking. This means businesses can set up in a coworking space in a different city or country without having to start the process of finding and furnishing an office all over again. This global workspace network greatly facilitates the international expansion of enterprises, allowing enterprises to quickly respond to new market opportunities while maintaining operational consistency and efficiency.

3. Localization support

When entering new overseas markets, companies often face challenges in language barriers, cultural differences, laws and regulations, etc. High-quality shared office spaces not only provide physical space, but also provide valuable local support for overseas companies, helping them integrate into the local market faster and better.

Many coworking spaces are staffed by staff who know the local area. These staff can not only provide daily office support, but also provide enterprises with advice on local business environment, cultural habits, etc. For companies entering the market for the first time, these suggestions can help them avoid misunderstandings or conflicts due to cultural differences and adapt to the local business environment more quickly.

Some high-end shared office spaces also provide professional business services, such as company registration, financial consulting, legal consulting, etc. These services are usually provided by professionals who are familiar with local regulations and market environment, and can help enterprises better understand and comply with local laws and regulations and reduce compliance risks. For overseas companies that are unfamiliar with the local legal system, these services can greatly reduce their burden and allow them to focus more on the development of their core business.

Many shared office spaces regularly organize various localized activities, such as market trend lectures, industry exchange meetings, etc. These activities not only help companies understand the latest market dynamics and industry trends, but also provide them with opportunities to communicate with the local business community. By participating in these events, businesses can gain a deeper understanding of the local market, gain valuable business insights, and possibly even find potential customers or partners.

Shared office spaces are usually located in the core business districts of cities, with complete surrounding supporting facilities. This geographical advantage can help companies better integrate into the local business ecosystem. Whether receiving customers or participating in business activities, enterprises can enjoy convenient transportation and complete service facilities. This will not only enhance the professional image of the company, but also provide a better working environment for employees, which will help attract and retain local talents.

4. Business network construction

When entering new markets, establishing an extensive and effective business network is one of the key factors for business success. Shared office spaces provide a unique platform for overseas companies to quickly integrate into the local business ecosystem and establish valuable business relationships.

The shared office space itself is a diverse business community. Here, businesses can come into contact with companies and individuals from different industries and backgrounds. This diversity provides businesses with rich opportunities for communication and cooperation. Through daily interactions, companies can understand the dynamics of different industries, obtain market information from multiple perspectives, and may even discover unexpected business opportunities.

Many shared office spaces regularly organize various social activities, such as breakfast meetings, industry lectures, entrepreneurial sharing sessions, etc. These events provide formal and informal communication platforms for businesses. By participating in these events, companies can not only showcase their products or services, but also meet potential customers, partners or investors. For companies that have just entered the market, these activities are an effective way to quickly establish local relationships.

Some high-end shared office spaces also provide members-only online platforms or APPs. These platforms usually include member directories, event calendars, cooperation requirement postings, and other functions. Enterprises can use these tools to find partners more specifically, or publish their own needs. This digital communication method has greatly expanded the scope of the enterprise’s network and greatly increased the possibility of business cooperation.

Shared office spaces usually have close cooperative relationships with local business associations, business incubators, investment institutions, etc. Through these relationships, businesses have easier access to industry resources and professional support. For example, some shared office spaces will invite venture capitalists or successful entrepreneurs to share, which provides companies with valuable learning opportunities and potential financing channels.

Shared office space provides a comprehensive solution for overseas companies. By optimizing costs, providing flexibility and scalability, giving local support and helping build business networks, shared office spaces greatly reduce the barriers and risks for companies to enter new markets.

Challenges and coping strategies

Although shared office spaces bring many advantages to overseas companies, companies may still face some challenges during actual operations. These challenges involve cultural adaptation, privacy protection, long-term development planning, and balance with traditional office models. Successfully addressing these challenges will not only help companies better take advantage of the benefits of shared office space, but also lay a solid foundation for the company’s long-term development. Below we explore these challenges and their corresponding strategies in detail.

1. acculturation

In a shared office environment, companies and individuals from different backgrounds and industries coexist in the same space. Although this diverse environment is full of opportunities, it also brings cultural adaptation challenges. For companies going overseas, this challenge may be more prominent, because they not only need to adapt to the culture of shared office, but also need to adapt to the culture of the country or region where they are located.

Businesses may experience differences in work styles and communication styles. For example, some cultures focus more on direct communication, while others prefer euphemism. This difference can lead to misunderstandings or conflicts. To address this challenge, companies can adopt the following strategies:

• Conduct cultural training: Organize cultural sensitivity training before employees enter the shared office space to help them understand and respect different cultural backgrounds and work styles.
• Encourage open communication: Establish an open communication channel, encourage employees to share the difficulties and doubts they encounter during the cultural adaptation process, and provide timely support and guidance.
• Participate in community activities: Actively participate in various social activities organized by the shared office space, which not only helps employees better integrate into the environment, but also enhances understanding and communication with other companies.

In a diverse environment, companies may face the challenge of maintaining their corporate culture. To adapt to the new environment while maintaining your company’s identity, consider the following strategies:

• Regular team building: organize regular team activities to strengthen corporate culture and values ​​and enhance team cohesion.
• Create an exclusive space for the company: Divide an exclusive area in the shared office space, use corporate logos or decorations to reflect the corporate culture, and provide employees with a space for identity recognition.
• Flexible working arrangements: While adhering to the rules of the shared office space, provide employees with a certain degree of flexibility, allowing them to work in the way they are accustomed to without affecting others.

2. Privacy protection

In an open shared office environment, privacy protection has become a challenge that cannot be ignored. Enterprises need to ensure that sensitive information and business secrets are effectively protected while enjoying the convenience and communication opportunities brought by an open environment. This challenge involves many aspects such as privacy of physical space, data security and intellectual property protection. For privacy protection in physical spaces, enterprises can adopt the following strategies:

• Choose an appropriate office area: According to business needs, choose an independent office or a semi-open workstation. When you need to have private discussions, use the conference room or phone booth provided by the shared office space.
• Use a privacy screen: Install a privacy screen on your computer screen to prevent sensitive information from being inadvertently viewed by others.
• Establish a clear visitor policy: Employees should use a dedicated reception area when receiving visitors to prevent visitors from entering the work area.

When it comes to data security, businesses can consider the following measures:

• Strengthen network security: Use VPN and encryption technology to protect network communications and avoid transmitting sensitive information on public Wi-Fi.
• Implement strict data management policies: Develop a clear data classification system that clearly defines how different levels of data are processed and stored.
• Regular training: Provide regular information security training to employees to improve their security awareness and operating practices.

For intellectual property protection, companies can adopt the following strategies:

• Sign a confidentiality agreement: Sign a strict confidentiality agreement with employees and partners, clearly stipulating confidentiality obligations and liability for breach of contract.
• Handle documents with care: archive or destroy important documents promptly after use and avoid leaving sensitive documents in public areas.
• Pay attention to intellectual property registration: apply for patent or copyright protection for innovative achievements in a timely manner to reduce the risk of intellectual property leakage.

3. long term development plan

Although shared office spaces provide companies with flexibility and cost-effectiveness, how to formulate long-term development plans under this model has become a challenge faced by many companies. Enterprises need to find a balance between flexibility and stability to ensure that the shared office model can support the company’s long-term development goals. Enterprises need to conduct detailed needs analysis and long-term planning:

• Evaluate business growth expectations: Based on business development forecasts, estimate future personnel and space requirements to provide a basis for selecting appropriate shared office solutions.
• Establish phased goals: Break down long-term development goals into short-term, medium-term and long-term goals, and regularly evaluate and adjust office needs.
• Consider geographical expansion: If you plan to set up offices in multiple cities or countries in the future, you can choose a coworking brand with a global network to facilitate cross-regional expansion.

Enterprises should establish flexible office strategies:

• Hybrid office model: Combining fixed office areas and flexible workstations not only ensures the stability of the core team, but also provides flexible space for project teams or temporary needs.
• Combining long-term and short-term leases: For core business areas, consider signing longer-term leases to obtain better prices and more stable space; for newly expanded businesses or projects, you can choose short-term leases to reduce risks.
• Establish a virtual office system: Invest in a powerful remote office system that enables teams to collaborate efficiently in different shared office spaces or even when working from home.

Enterprises should focus on cultivating an adaptive culture: encouraging innovative thinking, cultivating employees’ ability to adapt to changes and uncertainties, and encouraging them to seek innovation opportunities in shared office environments. Pay attention to knowledge management and establish an effective knowledge management system to ensure that the company’s core knowledge and experience can be effectively inherited and accumulated in a flexible office environment. Regularly review and adjust, establish a regular evaluation mechanism, and timely adjust office strategies based on business development and market changes.

4. Balance with traditional office model

Despite the many advantages of the coworking model, completely abandoning the traditional office model may not be suitable for every business. The challenge faced by many businesses is how to find the best balance between coworking and traditional offices to meet the needs of different departments and employees while optimizing overall operational efficiency. Businesses need to conduct a comprehensive needs assessment:

Evaluate the nature of work, collaboration needs and privacy requirements of each department to determine which departments are more suitable for shared office and which are more suitable for traditional office. Understand employees’ preferences and concerns about different office models and consider employees’ opinions in the decision-making process. Compare the costs and benefits of different office models, including direct costs (such as rent) and indirect costs (such as employee satisfaction, collaboration efficiency, etc.).

Enterprises can consider implementing a hybrid office strategy: retaining a traditional core office area while renting flexible workstations or conference rooms in shared office spaces to cope with business fluctuations and special project needs. Implementing an office location rotation system allows employees to rotate between traditional offices and shared office spaces, which can not only maintain team cohesion but also enjoy the innovative atmosphere brought by shared offices. According to different work needs, functions are allocated between traditional offices and shared office spaces. For example, daily operations are placed in traditional offices, while creative meetings and customer negotiations are arranged in shared office spaces.

Enterprises should focus on cultural integration and management innovation: establishing a unified corporate culture, maintaining consistent corporate culture and values ​​no matter what kind of office environment they are in, and enhancing employees’ sense of belonging. Optimize management processes and adjust management methods and performance evaluation systems to adapt to a more flexible and decentralized office model. Strengthen communication tools and invest in advanced collaboration tools and platforms to ensure that employees in different office environments can collaborate seamlessly. Based on business development and employee feedback, regularly evaluate the effectiveness of the hybrid office model and make necessary adjustments in a timely manner.

Successfully addressing these challenges requires companies to adopt a comprehensive and flexible strategy, including strengthening cultural adaptability, paying attention to privacy protection, formulating long-term development plans, and finding the best balance between shared office and traditional office. Through careful planning and continuous adjustments, enterprises can make full use of the advantages of shared office while avoiding potential risks, thereby achieving sustainable development in the fiercely competitive international market. As work styles continue to evolve and technology advances, companies need to maintain an open and adaptable mindset and constantly innovate management methods to respond to new challenges and opportunities that may arise in the future.

Future Outlook

As an emerging office model, shared office space has had a profound impact on a global scale. Especially for overseas companies, it provides a flexible and efficient solution. With the advancement of technology, the evolution of work styles, and changes in the global economic landscape, the development prospects of shared office spaces are exciting.

1. market forecast

The coworking space market has experienced rapid growth over the past few years, and despite some challenges, the overall trend remains positive. According to forecasts from multiple market research institutions, the global shared office space market will continue to maintain steady growth in the next few years.

In terms of scale, it is expected that the global shared office space market will reach approximately US$30 billion by 2025, with a compound annual growth rate remaining above 15%. This growth mainly comes from several factors: first, more and more large enterprises are beginning to adopt flexible office strategies and put some teams or projects in shared office spaces; second, the rapid development of emerging markets, especially in the Asia-Pacific region country, demand for shared office spaces is growing rapidly; finally, changes in working styles in the post-pandemic era are also driving demand for flexible office solutions.

From a geographical perspective, while North America and Europe will remain the most mature markets for coworking spaces, the Asia-Pacific region, especially China, India and Southeast Asian countries, is expected to be the fastest growing region. This is undoubtedly good news for overseas companies planning to expand to these areas, because they will have more high-quality shared office space options.

From the perspective of user composition, in addition to traditional entrepreneurs and freelancers, the proportion of large enterprises and multinational companies using shared office spaces is expected to increase significantly. This trend may push coworking space providers to further improve the quality and specialization of their services to meet the needs of large enterprises.

2. Possible new trends

With the development of the market and the advancement of technology, some new trends may emerge in the shared office space industry. These trends will not only change the operating model of shared office spaces, but also affect the user experience.

Technology integration will become one of the core competitiveness of shared office spaces. With the popularization of 5G, Internet of Things and artificial intelligence technology, shared office spaces in the future may become more “smart”. For example, facial recognition technology enables contactless admission, smart sensors are used to optimize space utilization and energy efficiency, or AI assistants are used to manage conference room reservations and visitor reception. The application of these technologies will greatly enhance user experience and also help operators manage space more efficiently.

Health and well-being will become important considerations in the design of coworking spaces. In the post-epidemic era, people’s attention to health and hygiene has increased significantly. Shared office spaces in the future may pay more attention to elements such as air quality, natural light, and green planting, and may also provide more facilities to promote physical and mental health, such as gyms, meditation rooms, or outdoor work areas. This trend will not only help improve work efficiency, but also attract more companies that focus on employee well-being.

Shared office spaces may become more specialized and vertical. As the market matures, some shared office spaces may begin to focus on specific industries or fields, such as technological innovation, financial technology, life sciences, etc. This kind of professional shared office space can not only provide customized facilities and services, but also promote communication and cooperation between companies in the same industry and form an innovation ecosystem. For overseas companies, this means that they may be able to find office solutions in overseas markets that are more suitable for their own industry characteristics.

Coworking spaces are likely to become even more closely integrated with urban development. With the advancement of urbanization and the transformation of commercial real estate, some large commercial complexes or old factory renovation projects may use shared office space as an important component. This integrated “work-life-entertainment” space not only provides a convenient office environment, but also satisfies people’s pursuit of quality of life. For overseas companies, this means that they may be able to find more comprehensive solutions overseas, which not only solve office needs, but also provide employees with good living facilities.

3. Long-term impact on overseas companies

The development trend of shared office spaces will have a profound impact on overseas companies, and these impacts may reshape their overseas development strategies in many aspects.

The popularity of shared office spaces will further lower the threshold for companies to go overseas. As the global shared office network expands and service quality improves, overseas companies will be able to establish a foothold in target markets faster and at lower cost. This is not only conducive to the globalization of large enterprises, but also provides opportunities for internationalization for small and medium-sized enterprises and startups. In the long term, this may accelerate the integration of the global economy and promote the frequency and depth of cross-border business activities.

The development of shared office spaces may change the organizational structure and management model of enterprises. As remote working technology advances and shared office facilities improve, companies are likely to adopt more decentralized and flexible organizational structures. For example, a business might have small teams in different coworking spaces in multiple countries, rather than being centralized in one large overseas office. This model can not only improve the flexibility and responsiveness of enterprises, but also help enterprises better adapt to different local markets.

As a communication platform, shared office space will play an increasingly important role in promoting the internationalization of enterprises. Through shared office spaces, overseas companies can more easily access local business partners, talents and resources. In the long term, this network effect may become an important consideration for companies when choosing shared office spaces, and may even affect their market entry strategies.

The growth of shared office spaces may impact corporate talent strategies. As work styles change and shared office facilities become more common, businesses may be more inclined to hire remote workers or freelancers around the world. This not only helps companies acquire diversified talents, but also improves the flexibility of human resource allocation. In the long term, this is likely to drive further opening and integration of global labor markets.

The trend of intelligence and digitalization in shared office spaces may drive enterprises to accelerate digital transformation. To take full advantage of advanced coworking facilities and services, companies may need to upgrade their digital infrastructure and workflows. In the long run, this may improve the company’s overall operational efficiency and innovation capabilities and enhance its competitiveness in the international market.

Conclusion

Japan’s shared office market provides unique and potential opportunities for overseas companies. As the world’s third largest economy, Japan has a mature business environment and advanced technological infrastructure, which has laid a solid foundation for the development of shared office spaces. In recent years, the Japanese government has actively promoted the reform of working methods, and the increased demand for flexible offices in the post-epidemic era has further promoted the rapid development of the shared office market. For overseas companies, this means that they can use shared office spaces to enter the Japanese market at lower costs and risks, while enjoying high-quality office environments and services.

However, companies still need to be cautious when choosing shared office spaces in Japan. We recommend that overseas companies first clarify their own needs and long-term development strategies, and then carefully evaluate the location, facilities, services and cultural atmosphere of different shared office spaces. In particular, it should be noted that Japan’s business culture has its own unique features. Choosing a shared office space that can provide localized support and network resources may greatly promote the company’s market adaptation and business expansion. At the same time, companies should also consider the flexibility and scalability of shared office spaces to accommodate possible future business growth or adjustments.

Japan’s shared office market is expected to continue its growth trend. As technology advances and work styles continue to change, we are likely to see the emergence of more intelligent, personalized and professional shared office solutions. At the same time, shared office spaces may be more deeply integrated into urban development and community construction, becoming an important platform connecting work, life and innovation. It will be crucial for companies going overseas to pay close attention to these trends and flexibly adjust their strategies. By effectively utilizing shared office spaces, companies can not only reduce operating costs but also better integrate into the local ecosystem, thereby gaining a foothold in the highly competitive Japanese market and achieving sustainable development.