Is Co-Working Becoming Oversaturated?

Tina Lichens

The co-working market could be in trouble. While co-working operators have expanded rapidly in recent years—fueled by tremendous demand—office leaders now believe the co-working market is now or is on its way to being oversaturated. In an office survey from Real Capital Markets, half of all respondents said the co-working industry was at moderate risk, and 37% said it was a great potential risk and showed early signs of oversaturation. Only 4% of respondents said the co-working niche showed no risk at all.

“Given the significant expansion of co-working, some investors are questioning whether this market segment is nearing a saturation point,” Tina Lichens, COO of RCM, tells GlobeSt.com. “They are asking ‘how much is too much?’ and ‘is there a bubble that is likely to burst and have an impact on the market?’”