WeWork Reports $2.1 Billion in Losses
“WeWork’s losses almost quadrupled to $2.1bn in the first quarter of 2021,” The Financial Times reported this week. According to reports, the coworking company also lost more than a quarter of its members over the past year; “the number of WeWork ‘members’ fell from 693,000 in March 2020 to 490,000 a year later.” Neumann’s settlement for around $500 million also counted for the losses the company reported, as did the company’s restructuring. WeWork’s quarterly revenues also took a hit, falling almost 50% year-on-year.
Demand for Flexible Workspaces Grows in Secondary Cities
A recent report from The Instant Group found that prices for flexible workspaces is increasing in secondary markets while decreasing in gateway cities, Globe Street reported. The main takeaway from the report is that flexible workspace demand is moving away from central cities and into suburban areas, closer to where people live. Though this presents an opportunity for flexible workspace operators, the report notes that it’s uncertain whether operators will be able to meet demand.
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Coworking Industry Expected to Continue Growing into 2025
Recent research from Ezra has found that by 2025, 6.3 million people will be working from coworking and flexible workspaces. “In the last year alone, the estimated number of worldwide coworking spaces has climbed by 21%, up 42% since 2018 alone. At the same time, demand has also remained robust, with the estimated number of people using a coworking space up by 27% since 2020 and 49% since 2018,” the report found.Share this article