"But an even bigger problem: Many people are likely to consider proximity to other people risky in the future, said Stuart Gabriel, director of the UCLA Ziman Center for Real Estate.
'We are going to carry the trauma of this virus risk with us for some time,' Gabriel said. People will avoid 'anything that has the word ‘co’ in front of it — co-working, co-living.'
With WeWork’s occupancy and revenues in decline, Gabriel said he is 'very concerned' about the company’s ability to pay its debts over the next four quarters. A sustained economic contraction could pose a substantial threat to co-working providers because the start-ups that flock to them might fold at a greater rate as funding and demand for their products dry up. Bigger companies that use flex space for supplemental offices also might contract."
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