The coworking industry has gone from a niche shared office filled with entrepreneurs to an in-demand workplace that is home to millions of workers from all corners of the workforce. Even as major household names like WeWork struggled to stay afloat, other operators made up for the company’s challenges.
Then COVID-19 struck, and the constant hum of collaboration between coworking members fell quiet. So how can an industry that has based its core business on sharing office amenities fit in a post-pandemic society?
While some have argued that coworking is one of the most high-risk segments of the office market, others see a world of opportunity for these flexible spaces. For instance, Joe Brady, CEO Americas for The Instant Group, says that businesses may look into cutting down on their own real estate footprint and adopt a hub-and-spoke model, where coworking spaces could serve as spokes.
“With this idea of the hub and spoke, if you’re reducing expensive real estate in the prime core business districts, the urban cores, and you’re moving out to first string suburban, you’re going to see some, some cost savings,” said Brady.
Doing so allows coworking operators to bring in a wider range of members, while also servicing suburban areas rather than solely big cities.