Most co-working space owners are optimistic about the future

Most co-working space owners are optimistic about the future

This information was presented in a study from Workthere, consultant Savills Aguirre Newman’s international platform focused on the coworking business, which further indicated that operators in North America are the most optimistic, followed by Europe and Asia.

In order to compile the report, Workthere carried out a survey, named Workthere’s Flexible Office Provider Sentiment Survey, through which it gathered more than 100 responses from operators in 11 countries all over the world to analyse the position and plans for the future from the coworking providers, as well as their prospects for the short and long-term.

The study also showed that the average occupancy for coworking spaces globally was at 83% before the Covid-19 and that by the end of May it is expected to be at 71%. Demand for this type of space in Asia started to bounce back in April and was established at 33% above the normal levels, compared to the 20% global average caused by the effects of the Covid-19 crisis.

Jess Alderson, the global investigation analyst at Workthere, pointed out that «our survey on the coworking spaces’ providers’ sentiment shows us the portrait of the current situation and the impacts associated with Covid-19. It is encouraging to see an optimistic point of view for the coming 12 months and the global occupancy levels above 70%. It is also interesting to see the responses from Asia, which are on a different point of the cycle, ahead of those from Europe and North America».

Cal Lee, global director at Workthere, remarked that «the coworking market is clearly exposed on the short-term to any impact on the market, such as we are witnessing with Covid-19. The risk is that companies do not renew their contracts when they enter survival mode. Teamwork is now essential to assure that the relation between the owner, the operator and the client continues to work without any problems since companies are starting to think about returning to work and on how that will work out. Providers who support their clients during that period will likely see a return from the clients in terms of loyalty in the coming years. The segment is in a good position to recover on the short-term and, on the long-term, it will carry out a fundamental role, since office users resort to this segment when seeking diversification and flexibility according to their working space needs».

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