Skip to Content
US Videos

Coworking Revives Office Real Estate

Investors and participants in REITs should pay close attention to the opportunities and risks.

Yousuf Hafuda: Once a dormant corner of the commercial real estate industry, office real estate has come to life recently as a result of various shifts affecting the U.S. economy. The most salient of these shifts has been the rise of coworking, popularized in large part by WeWork. Notwithstanding WeWork’s well-publicized struggles, the coworking model continues to gain traction as tenants seek greater flexibility in the way they utilize office space. The ever-increasing pace of change in the economy and growth in freelancing both provide a wellspring of demand for office space not tethered to the multiyear leases featured in traditional office space.

We view the effects of this shift on the office industry as being mixed, with the positive impacts broadly outweighing the negatives. Although coworking is additive to demand in that it aggregates space from individuals and small organizations that would not have otherwise had access to an office, such tenants are much riskier than their larger corporate counterparts. The short-term nature of lease agreements in coworking, which are typically signed for a month or as little as a day, likewise magnifies risk. Such agreements provide much-needed flexibility but allow tenants to rapidly shrink their usage of space during periods of economic difficulty.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.