The central business area (CBD) of Harare is losing businesses due to high rents

The adoption of a co-working model would be a wise move for Zimbabwean enterprises, who are already leaving the city to reduce their rent costs

Coworking space, contrary to common perception, is a business that contrasts with the conventional office setting

Harare- The central business area (CBD) of Harare is losing businesses due to high rents, parking fees, and the bad condition of several buildings. As a result, many small and medium-sized businesses are now operating in the low- and medium-density suburbs close to the city. Businesses now operate from "home," as the majority of companies have converted residential properties into offices. According to local bylaws, some businesses have turned homes into commercial spaces lawfully, but many others are doing so without actually changing the land's use. Now that property owners are asking rent in US dollars, most corporations cannot afford it given the current economic difficulties and the fact that many businesses generate revenue in ZWL terms.

The adoption of a co-working model would be a wise move for Zimbabwean enterprises, who are already leaving the city to reduce their rent costs, according to this article.The following is a good reason why.CBD's average monthly payment to businesses ranged from $2 500 to $3000. The company ultimately pays more than RTGS$ 3,750,000 per month when converted to RTGS currency on the black market. The CBD has a shortage of parking spaces for customers and employees, and City Parking charges 900zwl, or roughly $1 per hour.

Despite the arrival of Mt. Hampden, which is soon to become Zimbabwe's new capital city according to government oficials, the competition for offices in residential districts is rapidly changing the suburb into a commercial centre. In the past, Zimbabwe's major corporations preferred to have their headquarters in Harare's central business district, but that preference has changed, thus this article also promotes the usage of the co-working model. The few businesses that are still located in the Core of Harare are those whose regular clientele or foot traffic is substantial.

The focus on the CBD as the main business district is waning as evidenced by the attraction of notable big corporates to places like Borrowdale, including Zimbabwe's largest platinum miner, Zimplats, listed smartest group Cassava Smartech, leading medical aid society CIMAS, Great Dyke Investments, and resources firm, Bravura Consortium.

CBZ Holdings, one of Zimbabwe's biggest financial service providers, and Meikles Limited have both relocated their corporate offices from Harare's central business district to Borrowdale. The National Social Security Authority's cash-rich Celestial Park in Borrowdale is now home to the Securities and Exchange Commission of Zimbabwe, as has NMB Holdings, which just moved into its multi-million dollar headquarters on Borrowdale Road. Among the early settlers in the Borrowdale region were some of the largest brewers in the nation: Delta Company, CABS, and First Mutual Holdings. The enormous volume of traffic entering the city and the lack of parking spaces drive many office workers to park outside their place of employment, incurring additional costs, which causes the exodus from the CBD.

Parking in the CBD is estimated to cost ZWL$900 per hour, which many have deemed to be excessive. In high rise workplaces, where it is unfeasible to maintain a generator for a 20-story structure, for example, power outages and water supply problems are other big challenges. Property owners in Harare's CBD are feeling the strain as a result of the departure due to an unprecedented rise in the number of vacant commercial properties. The incomes of property owners have drastically decreased as a result. As a result, many property owners have had to lower their rental rates due to the pressure on occupancy levels and rentals.

Co-Working Space

In essence, coworking spaces are shared workstations. They provide low-cost office space for folks who want to get away from the solitude of a home office or a café or cheaper office space outside of town. Coworking space, contrary to common perception, is a business that contrasts with the conventional office setting. It also differs from the norm in terms of how it functions and generates revenue. This article is proposing that Zimbabwean companies adopt the co-working model.

How Do Coworking Spaces Generate Revenue?

Renting

Renting as a way that coworking spaces generate revenue can be looked at from two different angles. Investing in office infrastructure and renting it out. A coworking space, like any other workplace, has a defined amount of work areas that it leases out to individuals and groups. The main source of income for most coworking spaces is the rental of workstations. Apart from private workstations, several coworking spaces also rent out separate cabins and shared work areas. Several of them also give a flexible pricing option where consumers may choose from a variety of customizable options.

Investing in a general workspace and renting it out

Numerous coworking spaces that have open halls and conference rooms rent out these facilities for hosting events such as meetings, lectures, and training sessions, among other things. hey offer a low cost in comparison to many other resource-intensive options, and they also have enough facilities to organize these events.

Virtual Renting

Many coworking spaces go on to provide virtual offices as a service. While the staff works from home, a virtual office is a professional work address that a business may utilize for advertising, mail, and deliveries. Business owners or creatives who want to work from home but require a designated professional location for their brand would benefit from virtual renting.

Promotion And Marketing

Because coworking spaces have such a wide range of enterprises, work structures, and workers, several businesses often utilize them for a promotional schemes. Even seminars and training held in coworking spaces act as a technique for marketing a brand and generating income.

Partnerships And Investments

Connectivity and communication are at the heart of coworking. Running a coworking space allows you to network with a variety of local businesses and investors. This might help you improve the standard of your services and membership plans, as well as your own company. Good collaboration and investment bring value to your members, increase income, and produce new leads. Most of the time, collaborations also turn out to be budget-friendly strategies, allowing you to increase revenue.

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