Co-working spaces have been grabbing square footage in cities across the world over the past several years, fighting over who gets to house the influx of innovative startups and budding entrepreneurs. It appears that this market has hit oversaturation, and even the biggest names in co-working are starting to pull back.
WeWork cut forecasts earlier this year, and the CEO has pronounced an end to the company’s “spending culture.” Even though WeWork says its profits are stronger than ever, it’s hard to imagine how long that will last.
The community atmosphere offered by operators like WeWork is undeniably appealing, but it’s no longer a novelty. Traditional companies across Chicago are remodeling their offices to embrace a collaborative spirit and recruit young, creative talent. This, combined with a notoriously difficult business model, most likely signals the beginning of the end for co-working spaces.