Despite COVID-19, Coworking Is Here to Stay

While COVID-19 has made working from home an imperative for many employees, coworking spaces are likely to re-emerge as a key workplace option, according to a new report by Cushman & Wakefield.

“The Changing Role of Coworking in the Workplace Ecosystem” considers challenges tied to the pandemic and analyzes recent and potential growth in shared office spaces across more than two dozen metro areas in the U.S., Canada and South America.

The report focuses on properties that allow workers from different companies to share space. More than two million people co-worked in over 22,000 sites worldwide, according to Cushman & Wakefield.

“A major draw of coworking—its social factor—has become a drawback during a health crisis,” the report said. “As providers said goodbye to the popular ‘happy hour’ and hello to social distancing, many were wondering how a sector focused on socialization and community would survive through the pandemic.”

The answer, the report concluded, lies in coworking spaces taking the same health-and-safety precautions as other offices: Screening, or self-screening of employees at entry; stepped-up cleaning and ventilation; and limiting kitchen-area access with a focus on single-serve, disposable food and beverage items.

As for the future, the report identifies a number of pandemic-related issues that could ultimately make coworking more appealing. Some companies and workers who have found blending work and home life challenging may find a conveniently located coworking space attractive. A post-pandemic suburban “renaissance” may also benefit coworking locations outside downtown centers.

“As an alternative to committing to large amounts of space under multi-year leases at suburban corporate parks, some companies could opt to implement a re-imagined workplace ecosystem that balances office, home and third places, the report said. “In this ecosystem, some employees [work from home] a couple of days a week and at a coworking office close to their home the other days.”

WeWork remains the largest cowork space provider, leading 25 of 29 geographic markets and offering a combined 33.1 million square feet. Regus, Knotel, Spaces and Industrious round out the top five.

New York is by far the biggest coworking market in North and South America with 16.6 million square feet. Northern California comes in second with more than 6.1 million square feet and Los Angeles is a close third with just under 6.1 million square feet.

Lima, Peru has seen some of the most explosive growth in coworking construction with a 635% increase in space over the last three years. Buenos Aires, Argentina. is also an emerging market with a 452% increase in space over the same time period. Domestically, markets in Miami (390%) and Houston (272%) have experienced significant growth.