Back To Daily Digest
Tags: BUSINESS

Could a possible recession be coming for the coworking industry?

2018 was no doubt a successful year for the coworking space industry, but now, experts are weary about its future.

CBRE’s year-end report showed that coworking increased 200% from 2017 to 2018 with 200 coworking companies operating nationwide.

“The demand for flexibility is very strong and negotiating lease terms — whether it’s directly with a landlord or going through a third party flex-space operator — there’s increasing appetite for that,” said Nicole LaRusso, director of research and analysis at CBRE.

Although coworking seems unstoppable at the moment, there is speculation on how the durable the trend is.

The Latest News
Delivered To Your Inbox

Trading tensions and possible (inevitable) economic downturn could lead the real estate market into risky territory. In this scenario, experts say that tenants leasing flexible spaces could be the first casualties.

LaRusso says that in this case, tenants will most likely look for short-term options, so some may continue to move into coworking spaces and others may give back their space.

“The divergence is likely due to the perceived risk associated with higher concentrations of flex space, as well as the fact that buildings with high flexible space concentrations are much more likely to be Class B buildings,” according to the CBRE report.

Latest on Daily Digest

What can agile working do for your office?

Agile working has transformed the idea of typical office models by allowing more flexibility, fostering creativity, attracting more diverse talent, and boosting morale.
CBRE’s coworking business gives landlords a say

CBRE has launched its new coworking company, Hana, which focuses on entering into partnerships with building owners to maintain a strong relationship with tenants.
Coworking grows further in the West Coast

While many flexible workspace providers have set their focuses on tech-heavy areas of the country, the San Diego and Orange County coworking markets are on the come up.
Convene co-founder takes a step back

Chris Kelly, co-founder and president of Convene, announced he would be taking a step back from his current role and focus on developing the company’s culture and brand.
WeWork is moving into the software business

Coworking operator WeWork recently acquired Euclid, which is a small analytics software company that allows businesses to track how their spaces are being utilized.
Knotel enters the West Coast market

WeWork rival shared office provider Knotel will officially enter the Los Angeles market with its new 12,388 square foot space on Santa Monica Boulevard.
Everyone wants a slice of the coworking life

As flexible office and coworking options continue to expand, many businesses and landlords are taking note of the success of the market and finding ways to benefit from it.
Luxury flex space operator enters Houston market

Firmspace, an Austin-based high-end flex office provider, has announced plans for a new Houston location within the city’s BBVA Compass Plaza office tower in Uptown.
UAE is joining the coworking phenomenon

As the digital age pushes real estate markets towards offering more space-as-a-service options for companies, Dubai is finding its footing in the rapidly growing market.
Healthy work environments no longer a luxury

In the past few years, incorporating health and wellness in the workplace through greenery, air quality and exercise has become priority in attracting young talent.
Savills launches coworking directory in the U.S.

Savills has entered the massive U.S. coworking market with Workthere, its program that allows businesses and clients to find the perfect workspace to suit their work.
Providing secondary cities with high-end coworking

Serendipity Labs offers high-end, upscale workplaces to underserved secondary markets and suburban areas, places that are barely untouched by major coworking operators.
Ad

FOLLOW US

  • Facebook
  • Twitter
  • LinkedIn
  • RSS
  • instagram
  • pinterest
Ad