The total German coworking/flex workspace net surface remained stable, in 2024. Before a new phase of expansion boosted by management agreements?

“This year, in Germany, we anticipate 31 openings of new flex workspaces, totaling 51,000 m2, contrasted by closures and a planning freeze affecting over 50,000 m2”, observes Helge Zahrnt MRICS, Head of Research & Insight Germany for Cushman & Wakefield (C&W). This downturn represents a significant shift from the peak years of 2018 and 2019, where nearly 200,000 m2 were introduced annually.

The closure of some locations, by rent24, or the bankruptcy of Work Republic, some months ago, decreased the total offering in Germany negatively. However, the leading operators such as Mindspace, International Workplace Group plc or Design Offices, a.o, and a lot of other strong players (orangery. , 1000 Satellites GmbH, Work Inn, worqs Coworking, Unicorn Workspaces and many more) have, since then, continued to support the dynamic of coworking adoption in Germany, and will contribute further, in the near future, to the increase of the net total offering.

Tina Reuter MRICS, Head of Germany at C&W, remain optimistic about the flex office market’s resilience and potential for growth. “With falling interest rates expected later this year, we anticipate a revival in investment decisions, particularly in high-quality, flexible spaces that cater to evolving workforce needs”, she says.
A new boost could come from the more open mindset German landlords could show towards management agreement contracts with coworking space operators, believes Calum Russell, from COVALT, where risks and profits are shared. Germany would follow on that pathway the UK market, where property owners are embracing the model more massively, with a strong impact on the growth of the flex offering all across the UK, nowadays. “The sector’s ability to innovate in management practices will likely dictate its trajectory.”

This is what also believe Madeleine Gummer v. Mohl and Maximilian von der Ahé, LL.M., co-CEO of betahaus, the first mover in the Berlin coworking market, 15 years ago. “The future of coworking lies in management contracts”, they say in Immobilien Zeitung.

Regarding the article by Refire Online, the numbers don’t indicate whether the calculation takes into account the many smaller rural coworking spaces in Germany.

https://www.refire-online.com/investment/germany-flex-office-sector-faces-first-contraction-in-2024/

https://www.iz.de/unternehmen/news/-die-zukunft-des-coworkings-liegt-in-managementvertraegen-2000026427