Did the pandemic cause a permanent shift, rendering coworking spaces obsolete?

The covid19 pandemic has drastically increased employees working remotely. Many predicted that coworking would lose its appeal permanently because people would no longer feel safe while working in a shared space. But is that the case?

The pandemic must have been brutal for coworking and flexible space. According to CBRE, U.S. leasing for flex office space was down 45 percent in the second quarter of 2020. 

NY-based Knotel, which reached a valuation of more than $1B in 2019, filed for bankruptcy in Jan 2021 and was acquired by Newmark for $70 million, a reflection of the damage Covid 19 had wrecked on the company. 

The dramatic rise and fall of WeWork, a shared office space company, made headlines in 2019 when its high-profile initial public offering (IPO) failed. The arrival of the pandemic the next year certainly didn’t help. Its valuation fell from a lofty $47 billion to $10 billion, which was less than the $12.8 billion it raised in 2010. The company has further fallen to $5.1 billion as of May 2022. 

According to JLL, a commercial real estate company, 30% of all office space will be flexible by 2030.

Have you tried working in co-working space? How was your experience?

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