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TL;DR: The pandemic hit coworking spaces hard in the short term as offices emptied out, but it also accelerated demand for flexible, shorter term leases as companies grew wary of long fixed commitments. The post looks at how the sector adapted and came out stronger on the other side.
How did the coronavirus affect coworking spaces? The immediate impact was a sharp fall in occupancy as companies sent employees home and members cancelled or reduced their office plans. Coworking operators, however, still had rent, salaries and maintenance expenses to manage. The way forward was to make shared offices safer, offer more private spaces and give businesses even greater flexibility. These changes eventually helped coworking spaces become useful again, particularly for companies that were unwilling to commit to a long office lease.
Before the pandemic, coworking was growing steadily. Startups, independent professionals and even established companies were using shared offices because they were convenient and easy to access. A team could move into a furnished office without spending months on interiors, furniture or internet connections.
That changed almost overnight when the coronavirus began spreading.
Occupancy Dropped Quickly
Most coworking memberships came with limited lock-in periods and shorter notice requirements. This was one of their biggest advantages in normal times. During the pandemic, though, it meant that members could leave quickly.
As offices closed and employees began working from home, many companies reduced their seats or ended their memberships completely. Meeting rooms stayed empty, common areas were unused and the lively atmosphere associated with coworking spaces disappeared.
The fall in occupancy happened quickly, but the expenses of running these spaces did not fall at the same speed.
Operators Still Had Bills to Pay
A nearly empty coworking centre still had rent and other regular costs. Buildings required security and basic maintenance even when very few people were coming in. Operators also had employees and vendor payments to manage.
This created a serious cash-flow problem. Smaller coworking businesses were particularly affected because many did not have enough financial support to continue paying for several empty locations. Some centres closed, while others tried to renegotiate rental agreements with property owners.
Health Became a Major Concern
Before the pandemic, sharing desks, meeting rooms and cafeterias felt completely normal. Once the virus appeared, people became far more careful about using common areas.
Members wanted to know how often the office was cleaned and whether there was enough distance between workstations. They also became more concerned about ventilation and the number of people allowed inside meeting rooms.
Coworking operators had to make practical changes. Cleaning became more frequent, seating plans were adjusted and sanitisers were placed around the workspace. Private cabins also became more popular because teams felt more comfortable working within their own enclosed areas.
Working From Home Had Its Own Problems
Working from home helped businesses continue during the lockdowns, but it was not comfortable for everyone. Many employees lacked a quiet room, a proper desk or a stable internet connection. Video calls became tiring, and teams often found it harder to communicate or train new employees.
Companies gradually realised that they still needed a physical workplace. What they did not want was the cost and responsibility of setting up a large traditional office while the future remained uncertain.
Flexibility Helped Coworking Recover
The feature that made coworking spaces vulnerable at the beginning of the pandemic later became their greatest strength.
Businesses could take a small private office, bring employees in on selected days and increase their space only when required. They did not have to invest heavily in furniture or sign a long lease. The coworking operator looked after everyday services such as internet, housekeeping, security and maintenance.
Some companies also began using smaller offices in different parts of a city so employees could work closer to home. This reduced travel and gave teams a professional alternative to working from their bedrooms or dining tables.
The coronavirus was undoubtedly a difficult period for the coworking industry. Occupancy fell, revenue declined and people became cautious about shared environments. At the same time, the experience pushed operators to improve safety, privacy and flexibility. Coworking spaces that adapted were able to meet a new need: offices that companies could use without making a large or long-term commitment.
