Coworking spaces allow freelancers and companies in growth mode access to flexible lease terms. But real estate experts see headwinds ahead for less sophisticated coworking businesses, and ones relying on one company or industry, if a recession hits.

Those most at risk are coworking spaces with a mix of corporate users and individuals who occupy open desks inside the same building, WorkSuites CEO Flip Howard said.

Products along these lines are heavily funded by a few larger corporate tenants seeking shorter office leases. If these companies decide to suddenly depart or ask tough budgeting questions during a recession, their evacuations could cause sudden pain for less prepared coworking ventures, Howard said.

“I see spaces coming out that are WeWork-like, they have a freelance, hip collaborative [concept], but their revenue comes from corporate users,” he said.

“I see spaces coming out that are WeWork-like, they have a freelance, hip collaborative [concept], but their revenue comes from corporate users,” he said.