A new report from Upsuite shows that the coworking and flexible office industry found some stability this fall thanks to workers returning to the office.
According to the findings, asking rents for flexible workspaces grew by 2.5% across the U.S., while 24 new locations opened and 21 closed.
However, despite the industry steadying, Upsuite found that their listings fell 25% quarter-over-quarter which they credit to seasonality and concerns over the Delta variant.
“It was a very positive quarter for the underlying kind of fundamentals and the dollars and cents in the business. I’m not expecting a blockbuster Q4, like, ‘Whoa, not only is it back, but it’s revolutionizing everything.’ It’s just getting back on track,” said Ben Wright, CEO and founder of Upsuite. “That is what’s remarkable about it — that there’s elements of normalcy here.”
Among the many trends that are emerging from the industry, the number of closures appears to be the most significant as it indicates that the market has recalibrated, according to Wright.
While this doesn’t mean a huge upswing for flexible offices and coworking spaces, it does insinuate that the eruptive impact the pandemic has had on the industry is over.