T
he office real estate market has been struggling for years, but there are signs of life, particularly in demand for part-time offices. Commercial giant CBRE is acquiring flexible workplace company Industrious in a deal valued at around $800 million, reflecting the growing popularity of coworking spaces.

    The shift to hybrid work has been a boon for the coworking industry, which is evolving beyond its traditional model. In pre-pandemic times, companies signed long-term leases for office space, but with hybrid teams and uncertain workforce numbers, shorter-term contracts are becoming more appealing.

    Industrious' CEO Jamie Hodari notes that 10-year leases are no longer feasible due to the unpredictability of employee numbers. Instead, his company offers one-to-two-year contracts for satellite offices, which is proving successful. Industrious' revenue has tripled since COVID-19.

    The coworking model is shifting towards shorter-term rentals for companies to take over entire offices, rather than catering to freelancers and entrepreneurs. Some firms are even paying for employees to work at coworking sites next to strangers just to keep them happy.

    However, flexible workplace consultant Cali Yost remains skeptical about the effectiveness of coworking in resolving the employer-employee conflict over return-to-office policies. She emphasizes that employers must prioritize the work and then determine the workspace, rather than forcing employees back into offices for the sake of it.