The Impact Of COVID-19 On The Coworking Sector
Coworking operations around the world have come to a halt as the coronavirus pandemic continues to put normal life on hold.
Once lockdowns have been lifted, coworking companies will also be faced with the challenge of lease cancellations and rental waivers, particularly from startups, freelancers and small businesses.
Still, industry experts believe that this struggle will be short-term and demand for flexibility will grow in the months after coronavirus.
“The impact of COVID-19 in India is likely to be short-lived providing the virus remains relatively contained,” said Anshuman Magazine, chairman and CEO at CBRE India, South East Asia, Middle East and Africa. “However, on the positive side, health and wellness of employees could take centre stage for the majority of the corporates with greater focus on workplace hygiene, remote working policies, and increased adoption of flexible space options.”
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For the time being, operators are renegotiating contracts with partners and tenants, with plans to go back to the original contractual terms once things return to normal.
Although the coworking sector is expected to take a hit overall, the new way of working to emerge during and after this health crisis could officially propel coworking to be part of the mainstream.
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