Redefining Coworking: Creating Value in Peripheral Locations

Until now, operators' options seemed to boil down to two: ignore “the elephant in the room” or resort to a price reduction, a strategy that can generate friction in brand perception and trigger a cascade effect if demand weakens and prices continue to fall. In practice, this used to mean offering the same product at a lower price in less attractive locations or, conversely, maintaining the price in a location that transformed the offer without making adjustments, trusting that low availability would do the rest of the work.

However, there is another alternative. A few months ago, Marta Gracia, CEO of Cloudworks, proposed a different approach: “Areas that are not in the center can be positioned as a different product, with larger offices, more common spaces and larger size. The center is the center and is still the most demanded, but it also imposes greater limitations in space and capacity.”

This approach opens a new path, in which the value proposition is not based on choosing between location and price, but between location and more space.

Objective

To explain the philosophy and strategies Cloudworks has used in its new spaces away from the city center.

Key points

Brief intro of Cloudworks to give context. KPIs 2025 (2-3min)Explain the reasons that have led Cloudworks to develop this strategy.

Revenue?brand?market reaction to this strategy: KPIs?