Space as a Service (SPaaS): Examples, Features & Meaning for Real Estate

The global shift to remote work challenged the necessity of long-term rentals. As productivity stayed high, and businesses did not need to invest in renting office spaces, more and more people choose comfort of their homes over daily commute and commitment to one location.

To enhance this experience, an innovative solution appeared – Space as a Service. This technology allows for advanced flexibility and user convenience in residential, commercial real estate, and storage services.

In our article, we explain what Space as a Service model is, why it emerged and how it can be beneficial. You will also find key features of SpaaS platforms, their difference from a traditional long-term rental and coworking spaces, and the examples of successful SpaaS companies. Enjoy!

What is Space as a Service?

Space as a Service is a business model that offers various types of spaces, such as offices and meeting rooms, as a flexible on-demand service rather than a traditional lease or ownership model. AirBnB, Convene, LiquidSpace, and Clutter are the most widely known examples of Space as a Service model.

Space as a Service (SpaaS) model means users have flexible on-demand access to required space without long-term commitment and the constraints of traditional real estate lease. SpaaS may provide a variety of spaces, from coworkings, offices, and workspaces to warehouses and residential places for short-term rent. Space as a Service is a compelling, productive, and highly convenient model, as users also get access to all the required amenities for effective work.

The SpaaS creators do not possess any physical assets: they rent out the space in the building, equip it with the relevant amenities and then provide it as a service to customers who need such solution. Let’s find out how it works with the example of office space as a service. Instead of renting out a space for the long term, businesses book the space for the time that they require – it can be a month, day, hour, or any other time.

The SpaaS provides essential services like high-speed internet, Wi-Fi, security, sometimes storage rooms, and additional amenities, like wellness rooms, communal areas, or catering, to make the workspace more comfortable, and the work of employees – more effective.

Businesses save resources and get fully equipped offices, SpaaS owners profit from providing the place and service, simultaneously spreading and decreasing risks. This way, space as a service model is reshaping the commercial real estate industry, prioritizing user experiences and branding over simple space provision.

Main Features of Space as a Service Platform

• Space listings. SPaaS platforms include a comprehensive listing of multiple spaces available for booking and rent, offering users a variety of choices. Listings include information about each space, such as location, size, amenities, and pricing, to allow users to explore and compare different options and find the one most suitable to their needs.
• Advanced search and filtering system. To provide its users with the best solution tailored to their needs, SPaaS must have high-level search and filtering options. The most common criteria for filtering, except location, are types of space needed (office, coworking, retail space, storage, commercial space, event room, etc.), the capacity of place, and dates when it is needed. Optional features may be added, like extra security, lockable doors, projectors for presentations or microphones for conferences, etc.
• Map search. Space as a Service model visualizes the search of relevant property at a maximum level by integrating mapping services, enabling the user to choose the desired space location on the map. As SPaaS offers not only office space as a service, but also retail, warehouse, or commercial real estate, the location may be a crucial factor in the customer’s choice.

Map Search | Source: Convene

• Integrated CRM system. Integration of Customer Relationship Management systems is an absolute must in SPaaS platform. Coworking CRM integration allows the owner to manage customer interactions, track, save, and contact leads, and personalize the user experience based on customer data and preferences. CRM integration also may help to keep track of bookings and optimize marketing activities, for instance, sending an email reminder to a one-time customer, or an outdated lead.
• Visualization of spaces. High-quality visualizations of available spaces may provide customers with a comprehensive understanding of the layout, design, and features of the spaces before making a booking. This may include high-resolution photos of space interior and the surroundings, floor plans, or other relevant visual information.
• Convenient booking and communication tools. A booking system is required in SPaaS to enable users to check space availability, book spaces, and manage reservations easily through the portal. Apart from this, high-quality customer support is also necessary, to provide customers with timely and relevant answers to any possible questions they might have. Built-in communication tools, such as messaging or chat features, facilitate direct communication between users and space providers for inquiries, support, and any necessary assistance.

Booking | Source: Industrious

• Flexible pricing. Usually, the SpaaS platforms’ prices are flexible and depend on multiple factors – the size and type of the space rented, type of event, size of a team or organization, additional services like 24/7 surveillance, etc. The price may be subscription-based, hourly, or daily. This makes the space rented easily accessible, flexible, and cost effective for the business.

Optional Features

• User authorization and dashboard. While it may seem an obvious and a must-have feature, in reality not all SpaaS models offer personal dashboards for users. Such a function is undoubtedly a benefit both for businesses and for the SpaaS platform itself. User profile creation and management functionalities allow customers to create accounts, manage their preferences, track their bookings, and access payment history, which is a highly convenient way to handle the bookings and keep track of spaces reserved.
• Virtual 3D tours of the space or property. Some SPaaS platforms offer virtual reality tours of available spaces, allowing users to explore and experience the environment remotely. High-resolution virtual reality tours of every kind of workspace, from communal areas to conference rooms enhance the user experience and enable customers to get a tailored solution perfectly suiting their needs.

3D Coworking Model | Source: WeWork

• Floor plans. To provide high-quality user experience and comprehensive understanding of amenities available, some SPaaS platforms feature full scale floor plans of the workspaces. They allow users to navigate common areas, offices, and other spaces, and select areas based on their preferences, such as size, amenities, or location.

3D Floor Plane | Source: Convene

• Extensive location information. Except for the address or zip code, SPaaS platforms may include a convenient map featuring the necessary information for customers: nearest bus, train, or subway stops, parking (if not provided by the space), closest restaurants and cafes.

• Reviews. Some platforms also feature a reviews section so that customers can share their impression of the space and how likely they are to book again. The reviews may be helpful for a potential SpaaS user, letting them decide whether the chosen space is suitable for their needs and benefits of the place are worth the price.

Rating system | Source: AirBnB

• Tour scheduling. While it is mostly relevant for long-term space rental with higher numbers at stake, there may be a possibility to schedule and book a tour around the space you are interested in. This works for users who would like to check everything in person before finishing the booking and make sure that space would fully meet their requirements.
• Smart Office. Certain SPaaS platforms provide smart office integration, allowing users to control various aspects of their workspace remotely, including lighting, temperature, and access control, through a centralized platform.
• Extra on-site facilities. Additional services, like on-site cafes, espresso bars, bike racks, mother’s room, wellness room, dedicated storage spaces and other facilities are a significant competitive advantage of SpaaS spaces compared to traditional office lease. Together with hosted reception, print/scan equipment, and common areas, available in most of the SpaaS platforms, office space as a service model is highly beneficial for companies using it: few business owners can boast such convenient and highly organized office with so little investment dedicated to it.

Available amenities | Source: Industrious

• On-demand service. For some events, like conferences, presentations, or teambuilding, there is a need for extra services that must be ordered additionally. Space as a service model may provide these services at additional cost to the booking, but this takes the responsibility of organizing the event off the shoulders of business owners or their assistants. Most common services are catering, furnishing, event organization and consultancy, and on-site support team. Some SpaaS platforms reach this through partnerships and integrations with other providers, and some models include it into their plans. In any case, this makes the life of business owners much easier, and the organization of events becomes a breeze, not a burden.
• Relaxation areas. Except for typical office facilities like printer, scanner, common area, and kitchen, some of the spaces provided by SpaaS platforms can boast additional areas for relaxation. The users of these spaces have access to gyms, relaxation rooms, yoga spaces, and wellness rooms, which makes them even more attractive for employees, increasing employee satisfaction and engagement, and promoting networking and collaboration.

Types of Space as a Service Platforms

The notion of SPaaS is pretty straightforward, however, there are still doubts about which companies can and cannot be named Space as a Service. We have tried to differentiate them based on the purpose and describe the unique core offering of each.

Workplace and Office Space as a Service

These SPaaS platforms cater to the specific needs of companies seeking efficient and tailored office environments without the burden of traditional leasing commitments. The solutions are flexible, fully equipped workplaces that provide office space as a service on demand.

The business model of office space as a service provides various coworking and collaboration spaces available. Some of the coworking space as a service examples include:

• WeWork. WeWork is one of the most well-known SPaaS companies, offering a wide range of flexible workspace solutions, including co-working spaces, private offices, and event spaces, designed to accommodate businesses of all sizes.
• Regus. Regus, part of IWG (formerly known as Regus plc), offers a global network of flexible workspace solutions, including serviced offices, meeting rooms, co-working and event spaces, and virtual office services, with locations in various countries.
• Industrious. Industrious focuses on providing premium co-working spaces and private offices for individual hybrid workers and teams with locations in key cities across the United States.
• Convene. Convene specializes in providing flexible meeting and event spaces, offering a range of private offices, event and conference spaces, and hospitality services for hosting conferences, seminars, and corporate gatherings as well as for work and collaboration.
• ServCorp. Servcorp provides premium serviced office spaces, meeting rooms, virtual offices, and coworking solutions. The company focuses on creating a community of business professionals and providing possibilities for collaboration among its members. A unique feature is the possibility to promote your business to a community of professionals, and a platform provided for business management and administrative issues solutions.

These office space as a service providers offer a diverse range of workspace options, services, and amenities, catering to businesses seeking adaptable and community-driven workspace solutions.

Traditional Office vs SpaaS

Vacation Space as a Service

The SpaaS model is suitable not only for businesses, but also for individuals seeking short-term residential space, usually for a vacation stay. While AirBnB is one of the most widely known examples of vacation SPaaS, there are also other companies which work at similar principle.

• Airbnb. Airbnb is a leading online marketplace for lodging, primarily known for its extensive offering of vacation rentals, homes, apartments, and unique accommodations worldwide. The principle of the company is to connect property owners with tourists seeking accommodation, charging a fee for each booking. Airbnb made short-term residential stays simpler, and vacation – more accessible and affordable.
• FlipKey. FlipKey is a vacation rental marketplace that connects travelers with property owners and managers, offering an array of rental homes, apartments, and condos for short-term stays. The company almost fully follows the AirBnB business model, offering tourists the chance to rent a place, and owners – to list their homes.
• Tripping.com. Tripping.com aggregates vacation rental listings from various platforms, allowing users to compare and book a diverse range of residential properties and vacation homes across various locations. Unlike previous companies, Tripping combines listings from various platforms, and finds the one most suitable for you.
• GlobeLiving. Previously known as Recharge, Globe Living is a service offering the booking of 4–5-star hotels and unused apartments, enabling customers to pay solely for the time they require. This booking platform connects you with a desired apartment or hotel room that can be reserved by the minute for stays under 24 hours, taking short-term rentals to the next level.

Residential Space as a Service

• Homeroom. Homeroom is a co-living startup based in Kansas City, with properties in Kansas City, Dallas, Austin, and other US cities. According to this SpaaS company’s vision, everyone should have a great place to live, not only regarding room, but also a supportive community around. Except for fully furnished residential spaces, Homeroom focuses on the shared living experience. The tenants have the chance to choose their roommates and share the vide of the place. The company hosts a variety of events to get to know roommates better, provides household items, and environment maintenance. They also offer services like internet setup and maid care. Overall, Homeroom is committed to making renting better for everyone by providing safe, high-standard shared homes that focus on community.
• Coliving.com. Coliving.com is a leading platform for finding and booking coliving homes worldwide. They offer over 25,000 rooms in more than 1,300 coliving spaces across 60 countries. The SpaaS platform will suit professionals, remote workers, and students, simplifying the process of finding and booking coliving stays. The mission of Coliving.com is to provide a community-driven, cost-effective, and sustainable housing solution, along with creating a community of roommates whose household habits seamlessly match. The SpaaS spaces are fully furnished, include cleaning, maintenance, workplaces, laundry, pool and gym, kitchen essentials, and other required services for perfect coliving experience.
• Livinc. Livinc is a provider of serviced apartments, aparthotels, and coliving spaces in the UK. They offer community-inspired coliving spaces, sleek city centre aparthotels, and fully furnished apartments. The services of this SpaaS company are flexible, as they suit leisure and corporate travels, and long-term rentals. Livinc accommodations are always fully furnished, with bills included, and they offer flexible terms from one night to one year. They also provide regular housekeeping and Wi-Fi services. The company also pays attention to the roommates, letting the customers decide on their environment and enabling them to socialize with like-minded people, creating a strong sense of community.

Retail Space as a Service

The concept of Airbnb for retail space became most often implemented in the form of pop-up shops. These are temporary retail spaces that operate for a limited period, typically ranging from a few days to several months.

Often set up in high-traffic locations such as shopping malls, vacant storefronts, or event venues, these spaces are used by businesses to create unique and engaging retail experiences, launch new products, test markets, or generate buzz for a brand. The examples are:

• We Are Pop Up. We Are Pop Up is a marketplace that facilitates short-term retail leasing for retailers, offering a diversity of retail spaces, including full space and shop share such as storefronts and market stalls. The platform enables users to search, book, and manage their pop-up retail spaces efficiently.
• Storefront. Storefront operates as an online marketplace for short-term retail spaces, allowing businesses and brands to find and rent commercial spaces for pop-up stores, product launches, product presentations, exhibitions, non-profit, fundraising, and other retail events.
• Matagora. Matagora is an innovative platform that offers a marketplace for businesses to discover and book short-term retail locations. With a focus on connecting brands with prime retail spaces, Matagora facilitates the process of finding and booking pop-up shops, shelves in shops, and other short-term retail experiences.

Event Space as a Service

If you are looking to host an event, like a conference, corporate party, exhibition, or a wedding reception, neither residential nor commercial Space as a Service will suit you. However, a separate branch of SpaaS is a perfect solution for such an occasion – event space as a service.

The variety of platforms offer this kind of space, along with food, catering, decoration, and other similar services that might be highly helpful for hosting your event, whether it is a corporate or a private one.

• Spacebase. Spacebase is an online booking platform that specializes in providing a great variety of event spaces and meeting rooms for short-term rentals, catering to corporate events, workshops, conferences, banquets, and seminars. The SPaaS platform simplifies the process of finding and securing unique event spaces to host most kinds of professional and creative gatherings, with or without catering.
• Eventup. Eventup operates as a SpaaS online marketplace offering event spaces for short-term leasing, serving as a one-stop destination for discovering and booking venues for corporate events, private parties, and other special occasions. The platform provides users with a selection of diverse event spaces, including ballrooms, rooftops, and conference centers, to accommodate different event requirements.
• Splacer. Splacer is a SPaaS connecting businesses with event spaces available for short-term leasing. The platform offers a variety of venues from pop-up shops and workspaces to warehouses and art galleries, to host a range of events, from corporate meetings to brand activation and pop-up experiences.
• Peerspace. This Space as a Service platform offers customers spaces for a wide range of purposes – from restaurants and banquet halls to warehouses, storefronts, and galleries. The spaces could be rented for short-term commercial experiences as well as private ones (like houses or studios that are also available on the platform). The marketplace is popular for photoshoots, meetings, wedding receptions, parties, corporate events, and many other activities.

Warehouse and Storage Space as a Service

The AirBnB for warehouses, storage space as a service model popularity rose along with the evolving needs of businesses for flexible and cost-effective solutions dedicated to managing inventory, stock, and merchandise.

These platforms serve as valuable marketplaces, providing businesses with on-demand access to secure and scalable storage spaces without the constraints of long-term leasing commitments. The examples of such a kind of business model are

• Clutter. Clutter is a tech-enabled storage solution that operates as an on-demand storage service, allowing customers to store their belongings securely without the need to visit a storage unit. The company offers pick-up, storage, and retrieval services through a convenient online platform.
• Stowga. Stowga is an online marketplace that connects businesses with warehousing and storage spaces, enabling users to find and lease short-term or long-term storage solutions. Basically, an AirBnb for warehouses, the platform connects businesses requiring storage with warehouse owners who have spare storage space, leading to improved supply chain and extra income generation.
• SpareFoot. SpareFoot connects customers with local storage facilities, where users can put literally anything, from outdated household items to cars, boats, and RVs. Platform enables users to compare storage options and book storage units based on needs and preferences.
• Warehouse Exchange. Warehouse Exchange connects businesses with available warehousing and distribution spaces. Except for spaces, the company provides legal support, shipping, and inventory services, which makes business life much easier.

Examples of Popular SpaaS Platforms

WeWork

• Type: Workplace and office space as a service
• Founded: 2010
• Solutions available:
  • Dedicated desks;
  • Private offices;
  • Full floor private offices;
  • Coworking access;
  • Event spaces.

WeWork concept is probably the most widely known SPaaS. The company works for a wide range of businesses, from startups and freelancers to large enterprises. The company currently operates in 119 cities, with 667 locations around the globe.

The payment plan is monthly subscription-based, with the most popular plan ‘Dedicated desk’ ranging from $300 to $800 a month, and a more traditional ‘Private office’ in New York from $1,900 to $3,700 a month. WeWork business model is designed to create collaborative work environment, foster networking, and a sense of community among its members.

Convene

• Type: Workplace and office space as a service
• Founded: 2009
• Solutions available:
  • Private workspaces;
  • Private office suites;
  • Meeting rooms;
  • Studios for virtual and hybrid events;
  • Corporate event spaces;
  • Coworking access;
  • Hospitality services: full culinary catering and on-site support.

Convene is one of leading flexible workspace and meeting space provider that operates in key cities across the United States, including New York City, Los Angeles, San Francisco, Washington DC, and Chicago. The company offers a range of fully serviced workspaces, meeting rooms, and event venues, along with full catering and support.

Convene focuses on delivering elevated hospitality experience, catering to both workspace and event needs. The company has 39 locations in 9 cities of the US and UK, more than 500 employees, and has already hosted more than 30 thousand events.

The platform offers membership for regular customers, and flexible events pricing which depends primarily on the number of attendees and the duration.

Airbnb

• Type: Residential and Vacation Space as a Service
• Founded: 2008
• Solutions available:
  • Accommodation rentals for short-term;
  • Long-term stays;
  • Emergency stays;
  • Experiences;
  • Online experiences.

Airbnb is one of the first residential SpaaS that connects hosts offering accommodation and experiences with travelers. Launched in 2008, the initial idea was to provide an alternative SpaaS system by allowing hosts to rent out properties or spare rooms to travelers, promoting a sense of community and cultural exchange.

AirBnB provides local homes, apartments, and unique properties, enabling travelers to experience destinations like a local. Hosts can generate income from their properties and travelers are offered a wide choice of properties and prices, from economy to luxury ones.

Clutter

• Type: Warehouse and storage space as a service
• Founded: 2015
• Solutions available:
  • Storage space in a safe warehouse;
  • Security and surveillance;
  • Online photo catalog of items;
  • Flexible delivery;
  • Local and long-distance moving service.

Clutter is an on-demand storage solution company operating primarily in the United States. Overall, the company has storage locations in 34 cities, and provides moving services in 21 locations.

With a team of over a thousand employees, Clutter provides customers with convenient and secure storage services, offering pick-up, storage, and retrieval of items through its online platform.

The company aims to simplify the storage process by providing accessible storage solutions and utilizing technology to streamline inventory management. Clutter pricing depends on the service required and is monthly based subscription in case of storage services.

Storefront

• Type: Retail space as a service
• Founded: 2013
• Solutions offered:
  • Pop up shop;
  • Showroom;
  • Art gallery;
  • Shopping mall;
  • Press conferences space;
  • Event space;
  • Fashion shows events spaces.

Storefront operates like AirBnB for retail, offering short-term retail spaces, catering to businesses seeking pop-up shops and temporary retail activations globally.

With a worldwide presence in various cities, Storefront offers a diverse selection of retail spaces, providing businesses with the flexibility to showcase their products and brands in high-traffic locations.

Storefront has a specialized focus on providing short-term retail spaces, enabling businesses to experiment with physical retail while minimizing the risks and costs associated with traditional long-term leases.

Meaning of SpaaS for Real Estate

As a growing number of customers no longer wish to commit to long-term contracts for offices, or year-long apartment rentals, flexibility, provided by SPaaS becomes a priority. This shift towards technological real estate and space as a service as its implementation will impact the real estate industry in many ways, including:

• How real estate is provided: Real estate will focus more on providing a service, not just square feet of space. While the emphasis on user experience was previously less important, the shift to a service-oriented model requires a strong focus on customer experience and brand identity. Understanding customer behavior and utilizing data to personalize the experience becomes essential.
• How real estate is appraised: Valuations will not only depend on traditional factors like location, size, and financial metrics but will also consider the property’s capacity to generate revenue from various business lines. Quality of service and customer experience will play a crucial role. Real estate companies that offer more than physical space will gain a competitive edge.
• How real estate is managed: The real estate industry has been slower to adopt digital transformation compared to other sectors. However, this is changing rapidly as technology revolutionizes various aspects of real estate management and operations. Technology plays a pivotal role in enabling the seamless delivery of space as a service solution.

How can I benefit from SpaaS model?

SPaaS offers many benefits for both businesses using the service and for companies providing it. It provides a better experience for businesses and easier management for property owners.

SpaaS Benefits for Businesses:

• Cost-Efficiency. SPaaS models offer businesses the flexibility to utilize workspaces without committing to long-term leases, thereby reducing overhead costs.
• Scalability. The adaptable nature of SPaaS allows businesses to scale their operations easily, accommodating fluctuating space requirements as they grow.
• Access to Amenities. Businesses can leverage the amenities and technology provided by SPaaS companies, enhancing their operational capabilities without investing in infrastructure.
• Improved Focus. Delegating property management tasks to SPaaS companies enables businesses to focus on core operations, fostering productivity and growth.
• Enhanced Flexibility. SPaaS provides the freedom to choose locations and adjust space utilization according to changing business needs.

SpaaS Benefits for Property Owners:

• Flexibility and Adaptability. SpaaS owners can easily adjust their offerings and services to meet the needs of clients, providing a level of flexibility that is often hard to achieve with long-term commercial real estate leases.
• Diverse Revenue Streams. Using SpaaS business model owners can generate multiple revenue streams by accommodating various businesses and professionals with different space requirements, meaning a more diversified and resilient income model.
• Lower Financial Risk. SpaaS property owners minimize financial risk by avoiding the legal and financial burden associated with long-term commercial real estate leases, offering a more agile approach to space utilization and management.
• Enhanced Customer Experience. With the range of amenities, customizable spaces, and on-demand services, SpaaS can deliver an outstanding customer experience, fostering customer loyalty. With SpaaS model, furthermore, the connection between satisfied customer and higher revenue is more evident, due to the more flexible nature of service provided.
• Efficient Resource Management. SpaaS platforms enable owners to optimize resource allocation, ensuring efficient use of space and amenities, resulting in cost savings and improved operational efficiency.
• Technological Integration. By integrating advanced technology and digital tools, SpaaS owners can streamline operations, offer seamless booking and management processes, and enhance the overall user experience for their clients, minimizing at the same time necessity of human interaction and expenses for staff.

Ascendix’s Role in Creating an Effective and Lucrative SpaaS

For over two decades, Ascendix has been at the forefront of real estate business automation, actively engaged in the real estate technology sphere since 1996. Our extensive experience in proptech development has made us experts in the creation and integration of cutting-edge technology solutions for real estate enterprises, closely following AI and other tech trends since their inception.

Why do industry leaders such as JLL and Colliers place their trust in Ascendix?

With over 20 years of real estate proficiency and 16+ years of dedicated proptech development expertise, we bring unparalleled industry knowledge to the table.

While our headquarters are in Texas, our global reach allows us to serve real estate businesses around the world, ensuring comprehensive and tailored solutions.

Operating through 5 international offices, we offer cost-effective strategies and comprehensive support for a seamless experience.

How can we assist you in SpaaS implementation?

• For startups aiming to bring their innovative ideas to life, we provide custom SPaaS development services and comprehensive software auditing and testing.
• If you are seeking to enhance your existing commercial real estate business by bringing in coworking CRM or switching to Space as a Service business model, we can create SPaaS software specifically dedicated to this aim.
• If you are investigating and considering new opportunities in the real estate sphere and have doubts about SpaaS system and its benefits for your company, or its suitability to your existing real estate portfolio, we can conduct audit and provide consultancy.
• For real estate professionals striving to keep up with the pace of technology, we leverage our expertise in APIs and software modernization to facilitate the smooth and efficient integration of AI tools into your existing infrastructure.

Ready to revolutionize the industry of real estate? Contact us for further information and schedule a consultation.