Co-working locations around the US have taken a devastating hit from the Covid-19 virus pandemic. The nascent industry was just getting a solid footing when they were required to close along with other gathering places, such as restaurants, gyms and non-essential businesses. Investors are wondering if businesses such as WeWork will even survive the downturn. According to Business Insider, “WeWork pulled its IPO in 2019 after mulling a massive valuation cut to drum up investor interest, and Co-Founder Adam Neumann was ousted as CEO and chairman. WeWork has been slashing jobs and selling or shuttering businesses.” Though that doesn’t bode well for other co-working businesses, industry analysts believe co-working will survive, just not in the same design as before.
There’s a two-pronged trend moving through the work world that is filled with a dichotomy: people who were forced to work from home during the pandemic might find out that they liked it and want to continue doing that, and, offices realizing that they will have to redesign themselves for returning workers to remain safely distant from each other. However, people still need interaction and collaboration to work well, and so it seems co-working spaces will continue.
The population of mobile workers will continue to increase. According to a report from International Data Corporation over 105 million workers will work from home this year at least once a week. And to be perfectly honest, we all know that “working from home” sometimes means working from a coffee shop or a bookstore, or a co-working table. Technology is allowing companies to go global and offer their employees the flexibility, security and mobility to work wherever they might find themselves.
In the meantime, during a business shut-down such as we are witnessing right now, co-working offices, bookstore, coffee shops, restaurants and even some parks are closed. This means that the mobile worker needs to have a place at home to work, where he or she can make phone calls in private and block the noise from the neighbor’s barking dog, the children playing, other family members talking. Interior designers are reporting that their clients are looking to add another room specifically for the office, or carve out space in an unused closet, under the stairs, or in a back room. Most believe having a home office will be the norm, even after the pandemic is over.
It is likely that co-working, far from being over, will expand in a hurry once the self-quarantine is over. Companies have become more comfortable with people working from home (let’s say, “remotely”) and will allow those who wish to work remotely to do so at least one day a week, if not more.
In the meantime, during a business shut-down such as we are witnessing right now, co-working offices, bookstores, coffee shops, restaurants and even some parks are closed. This means that the mobile worker needs to have a place at home to work, where he or she can make phone calls in private and block the noise from the neighbor’s barking dog, the children playing, other family members talking. Interior designers are reporting that their clients are looking to add another room specifically for the office, or carve out space in an unused closet, under the stairs, or in a back room. Most believe having a home office will be the norm, even after the pandemic is over.
Paradyme is on top of the changes, investing in the new trends in work environments and commercial real estate. To see how you can be involved in this emerging movement, contact us today.
