Recent trends suggest coworking is back, and WeWork is at the center once again, per The New York Times. For better or worse, coworking has become synonymous with WeWork and Adam Neumann’s ability to use tech-speak to reap billions from investors, but recent trends suggest it is back.
Coworking has become increasingly favorable thanks to several macro factors
The proliferation of covid vaccines has made the return to office feel safer
- Many workers want to return to the office, and their companies are looking to fulfill hybrid work environments while still offering flexibility
- Startups facing an uncertain funding environment – the new normal these days – favor short-term leases
WeWork occupancy jumped to 67% in Q1 2022, up from 47% a year earlier, and not far from its 72% pre-pandemic level
One reason is that landlords are becoming more open to profit-sharing agreements rather than traditional leases which allow coworking companies to reduce their monthly payments
But coworking still has its challenges
59% of workers who can work remotely want to stay remote, meaning coworking spaces won’t be much of an attraction for them
- Coworking spaces are also at risk for security issues
- WeWork was found to have weak WiFi security, which exposed sensitive data on its network
