COVID-19 badly struck the office space and especially the co-working firms reliant on short term leases arbitrage. Companies small to large, after vacating headquarters for a stint due to the pandemic, noticed the power of WFH. Nonetheless, coworking firms continued to pay their monthly rent to office landlords. Aside from the outlier WeWork, going public via SPAC, it seems like more and more coworking firms are landing buyers/equity partners. Recently, after Knotel filed for bankruptcy, Newmark acquired the real estate startup. Once both parties came to an agreement, CBRE took a 35% equity stake in Industrious. Lastly, a few months back Regus bought a majority stake in The Wing. The coworking startups of the real estate world live another day. Interestingly enough, the rise of coworking in the suburbs may just be very well the next iteration and trend of the decentralization of offices. Moving away from corporate campuses and towards work mobility, employers and employees alike recognize the shift in modern work culture. The hybrid model consisting of both office time and remote work may present plentiful opportunities for coworking companies.
What do you anticipate will be the next phase for coworking as more real estate service operators take a greater stake of ownership in coworking companies?
Leave a Reply