Work-From-Home and Co-Working Form a Symbiotic Relationship

Co-working offices will serve a new purpose in the post-pandemic world. Rather than serving start-ups and entrepreneurs, as they did before the pandemic, co-working offices have found a new demand pool among work-from-home employees at larger companies.

“Many employees of larger companies who are given the option to work from home are choosing to work from a co-working space or follow a hybrid approach instead yet most larger companies continue to seek traditional space for their central office locations,” Eli Randel, chief strategy officer of Crexi, tells GlobeSt.com.

Co-working offices are able to provide a unique experience to work-from-home employees, and they easily support a hybrid working model with little investment from the employer. “Co-working spaces support the work-from-home trend by offering people services and amenities they essentially don’t have at home, space for in-person meetings, and a community of like-minded professionals while still providing flexibility,” says Randel. “Many employees spend their workweek in a co-working space to switch up their scenery and to feel more productive in an office environment without having distractions they would have at home.”

Prior to the pandemic, WeWork, the leading co-working operator, went through a challenging period that included a failed IPO that subsequently led to a merger with SoftBank Group. In 2021, the company launched a successful IPO, and the work-from home model could support future growth. “Many operators are seeing a boom in demand and still expanding, but it can be market-specific and some locations are doing better than others,” says Randel. “One lesson learned from the WeWork situation was to ensure operations are sound as the novel hype-value has passed.”

The co-working industry is poised for stable growth, and Randel expects the industry to build on this new demand for flexible office space. “We are seeing continued growth, but modest and measured. Co-working and flexible spaces offer great benefits for some employees but not all,” he says. “With most workplace trends from 2021 revolving around the need for flexible scheduling and hybrid models, it should come as no surprise that the coworking industry is poised to grow astronomically over the next few years.”