Will Co-Working Spaces Return?
A few short months ago, “co-working” spaces were thought to be the future of office spaces. With the pandemic forcing more people to work from home and many tenants unlikely to renew short-term leases, co-working companies are struggling to stay afloat. On top of that, large companies may not renew their memberships as they lay off workers and cut costs. Co-working companies are asking Landlords for help during this time as the future for co-working spaces is unknown.
Several co-working companies are switching from leases to revenue-sharing arrangements with landlords, which should make the industry more resilient in future downturns by giving the co-working firms more financial flexibility.
Some co-working CEO’s think that in the long run, the industry could benefit from the current crisis. As more companies forgo expensive long-term leases, adopt flexible schedules and let employees work from home on some days, the flexibility of a co-working membership could become more appealing.
Source: 4/14/2020 Wall Street Journal, By Konrad Putzier.