Coworking Spaces See 10% Quarter-Over-Quarter Growth: Yardi

Yardi, through its CoworkingCafe site, released a new report that seems like one of the rare bits of good tidings for the office sector: the coworking subsector saw a 10% quarter-over-quarter growth in the number of flex workspaces during 2023 Q2. By the end of June 2023, there were more than 6,100 flex workspaces.

When it comes to bad-sounding news for the office sector, it’s hard to keep up with the incoming tide of new entries. Class A values are down 35% from the pre-pandemic peak. The latest estimates say the office sector overall could lose $800 billion in value by 2030. PGIM Chief Executive Officer David Hunt’s June take on the future of office properties was a “big workout for that purgatory set over the next 24 months,” with the vale of punishment between office heaven and hell comprising as much as 60% of office buildings by his estimate.