Published on 24 Apr 2021 on Yahoo Finance

Coronavirus battered the co-working industry, now it is making a comeback

It has been a rough year for co-working companies — and not just WeWork. Memberships and contract renewals dropped 40% since March, and membership inquiries dropped 70%, according to a survey of 600 co-working companies by Coworking Insights.

Health concerns made flex spaces “less appealing” during the pandemic, but co-working spaces are still one of the best-rated real estate investment prospects of 2021, according to London-based multinational professional services network PwC. And as coronavirus vaccine hopes brighten the outlook for this spring, commercial real estate owners are beginning to announce new co-working space openings.

“Our belief is that over the coming years, [flex space demand] will likely be accelerated coming out of the current circumstances,” said Ben Munn, global head of flex for JLL, a Chicago-based commercial real estate services company. JLL predicts that flex options will comprise 30% of the office market by 2030, compared to less than 5% now.