Coworking operators are benefiting from the uncertainty clouding the future of the workplace.
As employers continue to delay their return to the office, coworking firms have noted seeing a spike in occupancy over the summer thanks to their short-term leases and flexible nature.
“I think a number of those companies would have just simply gone into traditional long-term space,” said Nick Clark, CEO of Common Desk. “And the uncertainty is bringing them to us.”
In Houston, office occupancy levels have been trending down since the end of July due to the Delta variant of Covid-19 according to data from Kastle Systems. However, the area still has a higher occupancy rate than other cities the company tracked.
Still, this slowdown does not seem to be impacting coworking operators in the same way.
In fact, Clark stated that Common Desk’s Houston facilities have seen tour traffic grow by 30% during the second quarter of this year compared to the prior three months. Additionally, the company’s revenue across its Houston portfolio has grown by 60% since May.
“I think what Covid has done, and especially as Covid has lingered, it’s just simply given more companies a chance to sit and think and strategize, and realize that maybe that five- to 10-year lease term isn’t necessary,” said Clark.