Coworking providers burst into the office sector over the past few years, but the spread of the novel coronavirus could throttle the nascent industry, as the crisis forces flexible office workers to abandon once-vibrant workplaces.
Flexible offices were envisioned as communities where a new form of work could thrive, one where startups and smaller businesses could share the kind of splendid amenities once reserved for major corporations, with short-term leases that didn’t tie them down to traditional spaces. That has left the industry vulnerable.
“We’re so flexible that many of our members can get out of their leases with a 30-day notice,” Global Workspace Association Executive Director Jamie Russo said.
Her coworking industry trade group is still analyzing what impact that is having on its member companies, and she expects to form a clearer picture in the coming weeks.
“At this point our focus is to help our members through the next 30 days and then the next 60 days,” she said.
Every coworking firm must now make tough choices on where to limit operations, or shut down completely. Even tougher choices may lie ahead. COVID-19, the disease caused by the novel coronavirus, appears considerably more lethal than similar pandemics of the recent past, and the disruptions it causes may extend far longer than anticipated just a short time ago, forcing coworking firms to devise new long-term strategies to hold their communities together.
Without stronger attempts to actively suppress the new virus, the U.S. could suffer up to 2.2 million deaths, according to a study released Monday by London’s Imperial College. The severity of the threat lit a fire under many state governors, including New York’s Andrew Cuomo and Illinois’ J.B. Pritzker, who over the past week all shuttered schools, bars and restaurants. California Gov. Gavin Newsom said Tuesday schools there could stay closed the rest of the school year. The Centers for Disease Control and Prevention has urged people not to partake in gatherings larger than 50 people through May 11, and the Trump administration is recommending avoiding gatherings of more than 10 people.