Week 22, 2025

In early April 2025, J.P. Morgan Research raised the odds of a U.S. recession in 2025 to 60%, up from 40% just months earlier. Miro Miroslavov from OfficeRnD digs into a few ideas around how operators can prepare given the economic uncertainty that is definitely in the air.

The post touches on a few emerging trends we’re tracking for TWIC subscribers – most notably the 3 Undercurrents topics of e-commerce, dynamic pricing and additional revenue streams (or the new/next rev stack). But it also mirrors many of the conversations we’re having and hearing with execs across the coworking industry who are preparing for the worst, but hoping for the best.

UK design agency Interaction shared an insightful article making the argument for how asset managers can learn valuable lessons from coworking operators who have built successful commercial models through community-building, flexible design, and tenant-focused experiences.

Key tactics that can be borrowed include investing in sustainable design features that can command 7-10% rental premiums, implementing smart building technologies for cost savings and efficiency, and offering flexible lease terms to adapt to market uncertainty. Studies show that a 1-point increase in tenant satisfaction correlates with 8.6% higher lease renewal likelihood and 3-5% increase in annual returns.

As more operators are approached to consider management deals with building owners, the data in this article supports the value proposition experienced brands bring to the table.

Virtual office products and services are starting to receive long overdue attention, as technology catches up to expand those offerings. If you’ve struggled with how to engage those virtual members, a recent AllWork article by Alliance Virtual Offices highlights some best practices.

Featuring industry experts Carson Owen from Venture X (Greensboro, N.C.), Aubrey FitzGerald from Barrister Executive Suites (Woodland Hills, Calif.) and Keller Davis from Createscape Coworking (Austin, TX) the post emphasizes how building genuine relationships with virtual clients creates loyalty, with some clients staying over 45 years (and averaging 15-year tenures).

The key is treating virtual office clients with the same care and inclusion as physical members, fostering trust that generates long-term retention and positive referrals.

Charlie Ward shares that Ramen Club, a community for bootstrapped founders (ie those not chasing external funding to grow their businesses), has launched a coworking community in London called Ramen Space.

The team first hosted coworking sessions back in 2019 at Ministry of Startups in Whitechapel. 6 years (and a pandemic) later and they’re launching their own space in Dalson.

Toni Barreiros, the Head of Innovation at the Municipality of Fundão (in Portugal) shares that their regional "Passwork Fundão" now includes access to more than 20 shared workspaces and partner locations across Portugal and Madeira island.

We love that a municipality is embracing, and enabling coworking via these "Passwork Cards"

Another response to the recent comment encouraging operators to disintermediate themselves from brokers and "middle men"…

Jeremy Bamberg, COO at Factory, argues that disintermediation isn’t a future threat but a current reality, driven by operators who truly understand their customers and build differentiated products that speak directly to user needs.

His post emphasizes that when companies design buildings around genuine human requirements rather than just premium locations or features, they can establish direct relationships with end users without intermediaries, reducing friction and barriers. Rather than predicting the disappearance of brokers, he suggests their role is being rapidly reinvented, with successful disintermediation naturally following when the underlying product truly works and resonates with its intended market.

Richard Smith, founder and CEO of Office Freedom, has strongly criticized a recent conference talking point for office providers to "disintermediate" flex agents to improve efficiency and cut costs, describing it as a betrayal after 32 years of industry advocacy and revenue generation.

In particular, he highlighted the contradiction in the company’s (Yardi) position, noting that they recently acquired flex broker Hubble while simultaneously calling for the elimination of brokers, and argued that most flex providers aren’t recognized brand names that rely on broker partnerships for visibility and client acquisition. Its being argued that abandoning the broker model could lead to increased voids, reduced revenue, and transform the industry into a "glorified oligopoly," while emphasizing that flex deals are growing larger and becoming viable lease alternatives rather than just stepping stones.

As long as clients value centralized market comparison and expert advice, we believe that it will be tech-enabled brokers that remain an essential support system, rather than unnecessary intermediaries in an increasingly interconnected global marketplace.

Jamie Dundas, Managing Director at Good Space has outlined his company’s structured approach to team gatherings as part of a four-part series on "scaling with soul" in multi-venue hospitality businesses.

The framework includes weekly "Snippets" for Monday information sharing via Slack, 30-minute Friday "Huddles" focused purely on culture and learning, and highly structured "Level 10" meetings based on the Entrepreneurial Operating System that use timed segments to ensure efficiency and focus. Monthly practices include commercial reviews and "Zoom Outs" – one-on-one coaching sessions held outside the workspace that focus on professional development, role optimization, and addressing friction points that prevent team members from doing their best work. Dundas emphasized that while small businesses often excel at culture but struggle to scale, and larger businesses may grow quickly but lose their soul, purposeful meeting structures can help maintain both elements effectively.

In a continuation of hot topic discussions from conferences in the UK, Alexandra Livesey, CEO of Clockwise Offices, led a compelling debate asking whether flex offices represent a profit engine or costly experiment, concluding that flex is far from a trend but rather a proven model with 40 years of evolution.

The discussion emphasized that modern flex goes beyond simply providing desks and WiFi, urging landlords to understand their options, engage more closely with space users, and determine their preferred level of involvement. Livesey drew a powerful comparison to the hotel industry, noting that flex has reached the same maturity stage where operators can franchise entire buildings, bring in established brands to self-manage, or appoint third-party operators.

ASX-listed WOTSO has officially removed "Property" from its company name to better reflect its strategic transformation from a traditional real estate company into one of Australia’s leading flexspace operators. CEO Jessie Glew explained that many still perceive WOTSO as a real estate investment trust, when the company’s focus has shifted to operating income and community-building for its 5,700 members across suburban and regional locations. The company aims to become Australia and New Zealand’s largest flexspace operator, targeting growth of six to seven new sites annually while emphasizing flexible terms that help businesses scale near where people live and work.

The rebrand highlights a remarkable business evolution, with WOTSO’s flexspace division now operating 31 sites and generating $15.8 million in revenue—double that of its traditional property portfolio valued at $265 million.