Can Coworking’s Massive Expansion Persevere Through A Downturn?

Although the coworking industry is seemingly unstoppable due to high demand, some industry professionals believe that the market is becoming oversaturated.

A survey from Real Capital Markets found that 37% of respondents believe the industry to be at risk, while only 4% said it showed no risk whatsoever.

“Experts believe coworking is here to stay, but many suggest a consolidation within the space would be very natural,” said Tina Lichens, COO of Real Capital Markets. “While dozens of companies are active in the space, there are a handful that dominate the market.”

In the early days of the industry, the real estate market worried that coworking would simply drain leases from the rest of the market. But history has now shown that coworking firms have become an amenity for offices, which has further fueled oversaturation.

Whether the industry can thrive through an economic downturn will determine its longevity as an asset within the office market.