Will We Work spaces be sustainable in the future?

What will happen to shared work spaces? Prior to 2020 shared work spaces like We Work seemed to be gaining momentum as the hot flexible, practical and fashionable way to use experience office space. Now with the Covid-19 pandemic this model seems to have been torpedoed by social distancing. “Popular SF coworking space and ‘wellness club’ closes permanently…The Assembly, a self-described “wellness club” marketed primarily towards women and located in a 100-year-old church just off the Mission District’s Valencia Street, is closing permanently. Members of the club (of which there were 630 in January) paid a $250 monthly fee to access a coworking space, fitness classes and “wellness” activities such as acupuncture, cupping sessions, manicures and even tarot reading sessions.” What was once a dream space for shared workspace now has become a vacant nightmare due to social distancing mandates and mindsets. Instead of working collaboratively in a shared space, workers have quickly shifted to working from remote solitary locations. While this would have been difficult to predict, one of my investing clients has frequently told me he does not want to be an investor in single tenant commercial spaces. For years he has turned his focus to single family homes and non-rent controlled apartments. Something to think about indeed as a landlord: who do you want your tenants to be? Will you be able to withstand a bankruptcy of a single commercial tenant? Do you have the will to deal with residential tenants?