Although the COVID-19 pandemic disrupted almost all industries, with some like tourism and travel being more affected than others, the coworking industry managed to continue its growth during 2020, even if this growth was only half of what was projected before the pandemic hit.
There are many reasons why the coworking industry has bounced back from the emergency stronger than most:
The shift to remote work was met with resistance by most companies before 2020. Suddenly, making their operation fully remote was their only choice as workers worldwide were forced to stay home for months. Now, companies and employees have some experience with remote work. This has resulted in companies being more comfortable with a fully remote workforce, and employees demanding to be able to work remotely at least 3 times each week.
The main driving point for workers is the fact that working from home eliminates their need to commute, and this frees up their time to be with their families and achieve the work-life balance they seek. But working from home is not ideal because of factors such as the constant distractions, the lack of completely private space, the substandard equipment such as chairs, desks, etc., the slow and faulty internet connection, and the lack of system security that leaves them vulnerable to hackers.
All these factors have led remote workers to look for solutions that combine the flexibility of remote work with the advantages of the traditional office, and this is exactly what coworking spaces can offer.
Rising CRE Costs
Long expensive leases have been the norm for most companies for a long time now. But in 2020, as office buildings remained almost completely empty for months and companies kept paying their leases in full, it makes sense that these same companies started looking for more flexible alternatives to the traditional office.
Coworking spaces can be the perfect alternative for companies who want to make sure that employees have access to adequate equipment, spaces such as fully equipped meeting and conference rooms, and a reliable high-speed internet connection, without having to sign long leases.
Even though business travel was practically halted during 2020, it is just starting to pick back up. Business travelers can take advantage of the many coworking spaces available in most cities around the world because not only are they better equipped than hotel rooms, but also because they provide workers with the chance to gain access to the local communities that exist around coworking spaces. This in turn helps business travelers grow their network and gain a valuable foothold in the city they intend to grow their business in.
These are just a few of the facts that indicate that the coworking industry is here to stay.