It’s been a long couple of years for coworking.
But that wave we predicted in April of 2020 is happening.
Some areas are bouncing back faster than others but the numbers are undeniable.
Here are some of the top insights from industry leaders:
- By mid-year 2021, the world’s two biggest global coworking operators, WeWork and IWG plc (formerly known as Regus), reported a bounce-back in occupancy, to 52 percent and 69 percent, respectively. They also reported increases in revenue.1
- While physical office occupancy remains well below pre-pandemic levels overall, with average weekly attendance down 50 percent, the occupancy at co-working facilities is significantly higher than for traditional offices, says Jacob Bates, head of Americas flexible space with JLL Property Management.
- After a blip during the Omicron wave this winter, co-working leasing activity is expected to pick up over the next couple of months and some operators are already looking for spaces to grow, according to New York City-based Christelle Bron, Americas agile practice leader with real estate services firm CBRE. She notes that availability of co-working space is already tight in certain markets, including Miami and Seattle, and 26 new co-working locations opened in the fourth quarter of 2021 across the U.S. and Canada.
By 2025 the coworking market is expected to balloon to $13.03 billion.
- In a mid-2021 survey conducted by property brokerage JLL, 41% of office tenants said they expect to use more flexible office space as a result of the pandemic, up from 29% in a 2020 survey.
- Flexible workspace provider WeWork Inc said it expects 2022 revenue to jump at least 30% amid demand for office space from companies switching to a hybrid model of work.
- The Softbank-backed firm said it expects full-year revenue between $3.35 billion and $3.5 billion, a 30%-36% rise from its 2021 revenue.
- Demand for flexible office space increased 40% from Q3 to Q4 2021, an increase of more than 50% from Q1 2021 and 26% from Q1 2020, according to data from Denver-based coworking-office marketplace Upsuite Corp. That suggests many coworking and flex-space operators are back to, or exceeding, pre-pandemic levels.
- CBRE found 69% of large companies (with 10,000 or more employees) it surveyed in its 2021 Occupancy Sentiment Survey identified flexible office space as the most in-demand amenity of the future. Additionally, 28% of large companies report using flex space to solve for uncertain demand.
- According to a 2021 survey of flex operators in the U.S., United Kingdom and the Asia-Pacific countries by Brady’s The Instant Group, 77% say they feel positive about the industry’s future. Furthermore, 64% predicted occupancy would climb above 81% in the six months after the survey was conducted in September 2021. Nearly half of the operators reported they were likely to start expanding.
- JLL predicts 30% of office space to be flexible in some form by 2030.
- In almost every return-to-work poll and survey, 80% of respondents make “wellness” their number one demand for going back.
- Younger generations are more likely to rank wellbeing as the most important thing they are looking for in an employer. Every organization that needs young leaders — which includes every organization — should consider how to make wellbeing an essential part of their employee experience.
To learn more about why coworking, flexible workspace and hybrid are all the buzz, join us at GCUC in Seattle this May. Space is limited. Get your seats now! na.gcuc.co
The New Workplace Formula: Positivity, Mindfulness, Community, Vibrancy, Identity and Purpose