Co-Working Companies Benefit From Return-to-Office Uncertainty

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With concerns persisting about the Delta variant of the Covid-19 virus, many companies have delayed their return-to-office plans and are seeking flexible and short-term workspace solutions

Shared office space firms like WeWork and Industrious are enjoying a rise in sales this summer as U.S. businesses grappling withsparked by the pandemic seek flexible and short-term solutions.

Hundreds of companies particularly in the technology sector are taking spaces from these firms, ranging from a handful of hot desks to over 50,000 square feet for periods as short as one month. Many individuals are doing this on their company’s dime as they wait for their employers to figure outCompanies are also using short-term spaces to plan for a post-pandemic world after 17 months of most white-collar employees working from home and liking it.

WeWork had $215 million in revenue in July, up $209 million from June and one of the firm’s strongest desk sales months in its history. Industrious, another major shared space firm, chalked up the strongest sales week in its nine-year history during the last week of July. Smaller firms with just a few locations also are seeing sales and inquiries rise. WorkHouse, which has one location in Manhattan and one in Bedford, N.Y., has rented about 120 desks since July 1, down 30% compared with the same period in 2019, according to Debra Larsen, the firm’s chief executive and founder.

 

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