Coworking sector sprouting in Jamaica
Although most workplaces have long called back employees into office in the post-pandemic era, options for coworking and virtual office space in Jamaica continue to grow, at least in Kingston.
From The Business District Limited founded decades ago and in continuous operation since 2011, long before the pandemic, to Enigma Coworking, which entered the market this year, the idea of a shared office environment where several small businesses can work separately or collaborate has taken root.
“I think coworking is on the steady rise in Jamaica. We’re seeing a lot more freelancers popping up, new businesses are being established, and persons are looking for flexible workspace options,” said Kemal Brown, founder and CEO of the Digita Global Group. Enigma is a subsidiary of Digita Global.
Post-COVID, the hybrid model has become more attractive for both small and larger firms who have become more capital-sensitive, and so they’re turning away from traditional, long-term leases unless they are absolutely necessary,” Brown said in an interview with the Financial Gleaner.
Coworking has been defined as a collaborative working arrangement where individuals from different companies share a common workspace, fostering community and flexibility, while providing essential office amenities.
According to marketreportsworld.com, the global coworking spaces market is valued at approximately US$22.54 billion today and will reach US$43.07 billion within a decade, growing at an annual rate of 7.46 per cent between 2025 and 2034.
Enigma, based at Mountain View Avenue in Kingston, can house some 35 persons at any time, with rates starting from $2,750 per hour. Rates are charged hourly, daily, weekly or monthly.
Brown says Digita Global promotes the space online, and has generated interest from persons in “as close as Colombia and as far as Canada and the USA”.
Enigma’s clients include workers in the STEM field – science, technology engineering and mathematics – as well as start-up companies in various fields, a medical diagnostic company, and individuals just wanting a change of environment.
“We have had the CEO of a 400-person company working here because he just wanted to get away from his office,” Brown said.
Maria Jones, chairman of The Business District, which has been in continuous operation since 2011, prefers the term ‘serviced office’ in describing her business, and says coworking is a part of what her company offers.
The Business District, which has been around since November 1993, also offers storage pods, meeting rooms and a range of business support services at two locations in the Corporate Area, on Old Hope Road and on Cargill Avenue.
With over 12,000 square feet of space in total, Jones says the occupancy level at its Old Hope Road facility is at 92 per cent, and hovers around 80 per cent at its larger and newer Cargill Avenue operation.
“We own both of our spaces and we currently have about 350 associates, or clients, with 30 per cent being residential, and the others virtual, who, while not being physically present, this where their mail is collected and their visitors seen,” Jones said.
A range of professionals make up The Business District’s client list, with the largest group being attorneys, but also including accountants, engineers, microfinance companies and others.
The company welcomes a few clients from overseas, who make up less than five per cent of the total.
Brown believes Enigma has stepped into a market that has the potential to grow.
“Enigma is a brand that we hope to expand within and outside of Jamaica. We have plans to go to Montego Bay with the same brand,” he said.
With an investment of more than $70 million on Enigma, which Brown said was funded from his savings and debt, he says he managed to turn a profit in the first year of operation.
“We have definitely seen an increase in persons interested in coworking spaces but I think for next year, we’re definitely going to see a much more robust push primarily because with the rise of AI and other tools, many individuals are becoming ‘solopreneurs’, because they see where they can achieve their goals in much shorter time,” he said.
Other coworking spaces in Kingston include CoWork Ja, the Hub Coworking Limited, and Corporate Hill. Other coworking operations are also to be found in capital towns Mandeville, Spanish Town and May Pen.