COVID-19 Prompts Rethinking of Co-working Spaces
COVID-19 Prompts Rethinking of Co-working Spaces
Prior to COVID-19, coworking office spaces were surging in popularity. Rob Speyer, CEO of the commercial firm Tishman Speyer even called the sector the “biggest disruption to real estate since the invention of the elevator.”
Coworking has been a way for business owners and independent contractors to share space and cut costs. But as the outbreak spreads, the configuration of offices is being rethought.
Coworking companies like We Co. and WeWork are trying to restructure leases as demand for office space begins to shift. For most coworking companies, their business model relies on leasing spaces from landlords long-term and then subletting the space to office users under flexible terms. They tend to make more money by packing more customers on to each floor.
But under new social distancing norms, that business model may be more challenging. The commercial industry is already realizing that demand for open office layouts and densely packed offices could shift as workers return. WeWork said last week that it was “evaluating how our full-floor layouts can function to support distancing.”
Nevertheless, demand for furnished office space under short-term deals isn’t likely to disappear. “As more companies eschew long-term leases, adopt flexible schedules and let employees work from home, the flexibility of a coworking membership could become more appealing,” The Wall Street Journal reports.
As such, more coworking companies may switch from leases to revenue-sharing arrangements with landlords. They believe that could protect them better in any future downturns as that type of arrangement provides co-working companies greater financial flexibility.
Source:
National Association of REALTORS
admin
For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.
Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.
Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.
When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.
For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.