Coworking has helped startups accelerate their growth all over the world and have quickly become a staple in the evolution of work. Despite all of its triumphs, the industry has still had its fair share of problems which was proven during WeWork’s IPO saga.

So what are the biggest challenges that coworking operators face? One of the main factors that raised investor skepticism during WeWork’s attempt to go public is its business model of coworking companies taking out long-term leases, then subleasing them on much shorter terms. This generally has led to a gap between demand and supply for many operators.

Additionally, as several coworking spaces are typically open and host workers from various companies, there has been an increased concern about data security. Now, startups are being cautious and making sure to check the IT infrastructure of coworking spaces before signing on.

Along with operators keeping their security infrastructure reliable, coworking companies have to pay on the insurance of assets in the case of any damage caused by occupants of the space.

As coworking becomes more popularized, competition is expected to increase tremendously. This means that operators must go beyond free-flowing coffee and snacks to set themselves apart from the rest and retain their clients. According to Forbes India, the industry will see an increase in consolidation, mergers and acquisitions.