Since its beginnings about a decade ago, coworking has transformed offices into an oasis for workers from all corners of the workforce. Whether you want a creative workspace, a female-forward design, or a luxurious office that resembles a hotel, there is a space for you.
Now, flexible workspaces have grown beyond a fad for small businesses and startups. Large companies are also seeing the benefit of the hassle-free office setup. This is leading big operators, particularly WeWork, to disrupt the commercial real estate sector as we know it.
WeWork is taking Uber’s route in absorbing losses before actually making a profit. Both companies also share a lead investor in SoftBank’s Vision Fund.
But critics are still wondering whether either company will ever make a profit, especially in the face of an economic downturn.
Despite this, WeWork has made a massive presence all across the nation, taking up 4.5 million square feet of space in Los Angeles.
This has allowed for competitors to pop up across the industry, which often provide amenities or a community sometimes not seen at WeWork locations. For example, New York-based The Wing just opened a West Hollywood space that offers office and services needs for women.
Overall, while offering flexible, agile workspaces has proven to be favorable among many tenants, the short-term lease model has yet to be tested during a recession. It is evident that not all players within the coworking industry will survive, but the big names may have a chance.