Over the last decade, the way we work has changed dramatically.Technology has decoupled traditional associations of work andlocation, paving the way for a mobile workforce and a rethinking ofhow businesses use workspaces. Space as a service now makes up aconsiderable market share of the commercial real estate industry.However, the need for added flexibility came with a shift away fromtraditional leasing models. So, how is the legal relationshipdifferent, and what are the implications for services such asWeWork? What does the new paradigm mean for co-workers and spaceproviders, particularly in the wake of COVID-19?

Co-Working Agreements vs. Leases

Space as a service agreement, or co-working agreement, arelicenses, which are separate and distinct from leases. By design,the co-working agreement provides the licensor with moreflexibility, and legally they are more like gym or clubmemberships. Flexibility and the retention of control however, mayhave the unintended consequence of licensors having heightenedresponsibilities to their customers.

The biggest difference in these two types of agreements is alease gives a tenant more control, such as exclusive possession ofa space. But in co-working agreements, the licensor maintainscontrol, and the "tenants" must share their workspace and all theamenities. In a traditionally leased building, tenant spaces arenot shared and common areas are limited to parking decks, cafes,elevators, fitness centers, restrooms, lobbies and sharedconference rooms. In a co-working environment, every area is acommon area, and no tenant has exclusive control over any area. Thelicensor maintains control over the space.