Coworking & Flexible Office Space

Industry-level Consolidation / Diversification : There will likely be a consolidation among providers. Currently, there are hundreds of different companies in the coworking space, most of which are very small. It is likely that a recession would induce the bankruptcy of some providers followed by eventual consolidation of the majority of coworking locations under the umbrella of a handful of well-capitalized companies. Those with the most robust cash reserves and the broadest suite of services are likely to do the best. Despite potential perils awaiting the industry when the next downturn occurs, it is clear that the trend towards flexibility is here to stay. Occupiers will continue to seek ways to add flexibility on the margins of their portfolios. This demand will lead to a number of solutions in the marketplace including coworking, spec suites, and more flexible lease terms in traditional leases.

Coworking and Flexible Office Space

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