After WeWork revealed a positive growth in the first quarter of 2019, experts are still concerned about how sustainable the company would be in the face of a recession.
Coworking is not hip, trendy or cool
Martijn Roordink, cofounder of Amsterdam-based coworking company Spaces, has consistently denied that him nor his office space are “hip and trendy.”
Coworking spaces have often been synonymous with cool, modern work alternatives, but Roordink does not want that to take away from the hard work operators put into their office spaces.
Despite all their effort, when Spaces was bought out by the International Workplace Group (IWG), the company continued to face much backlash.
Now, IWG is evidently seeking out prospective buyers for Spaces, but Roordink has yet to comment on these reports.
This is not the first time private equity firms have taken over a flexible office company. For example, Blackstone took a portion of The Office Group in 2017.
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Some property agents and other experts warn that the long-term leases coworking operators take out could be in trouble as they face a possible recession.
Mat Oakley, head of commercial research at Savills, expects some coworking firms to go bust this year and that being seen as trendy will not be enough to keep them afloat.
Regardless, many large companies (think Microsoft and Spotify) are enlisting operators to open offices for them as the sector continues to grow.
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According to Coworking Resources, coworking spaces are continuing steady growth this year as firms continue to gear their services and amenities towards Millennials.
Young adults have started choosing the all-in-one model when it comes to work and favoring workspaces that also provide lifestyle amenities such as gyms, cafes, and more.
Codi is a startup out of the Bay Area that allows residents to apply as hosts and provides remote workers access to apartments or houses to be used as coworking spaces.
Ahead of its initial public offering, WeWork is shifting their narrative so public market investors see their losses as investments in an effort to avoid the Uber effect.
Kr Space, WeWork’s biggest competitor in China, has raised $145 million in a new funding round led by IDG Capital as well as Gopher Asset Management and Yixing Capital.
Coworking operator Industrious will open its first workspace within an Equinox fitness center at Hudson Yards in New York City, taking up 44,000 square feet of space.
Coworking provider Spaces has announced that its fifth Australian location will be located at Charter Hall’s newly redeveloped, luxurious Raine Square in Perth.
New York-based coworking operator Knotel will open its first Dublin location by the end of the year as it continues its major expansion across several European markets.