Dear MEL Topic Readers,
After WeWork's bankruptcy, what is the future of coworking?
After WeWork's bankruptcy, what is the future of coworking?
Coworking spaces have become increasingly popular in recent years, as
more people choose to work remotely or freelance. These shared workspaces offer
a number of benefits, including flexibility, affordability, a sense of
community, and productivity. For example, if you work from home, it is not so
easy to draw a line between work and daily life. But in the structured
environment of a coworking space, you’re surrounded only by other workers like
your office. In fact, as more people started working as freelancers or remote
workers, the demand for coworking space has been on the rise, especially since
the millennium. Founded in 2010, WeWork was a shared workspace company and grew
quickly to become one of the most valuable startups with over 700 locations in 39
countries. Unlike other shared-office operators, WeWork took on long-term
leases with property owners and collected members’ fees directly to pay the
rent. This would allow them to enjoy any extra revenues above the rent they
pay. However, when the demand falls like during the Covid era, or property
value falls and their long-term lease contract becomes too expensive, this
business model collapses. This is what happened to WeWork and the company filed
for Chapter 11 bankruptcy protection on November 6. In the meanwhile, other coworking
space providers are enjoying their businesses as they have been. Another example
of rapid growth and fall in business.
Read the article and learn about what has made once a shining star in the
coworking business.
https://www.bbc.com/worklife/article/20231115-after-weworks-bankruptcy-what-is-the-future-of-coworking
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