German Coworking Operator Design Offices Puts Expansion Plans On Pause Amid Market Pressures
Design Offices, one of Germany’s largest coworking operators, has put its expansion plans on hold as it faces rising costs and uneven occupancy across its portfolio. CEO Dr. Joachim Gripp outlined the situation in a recent interview with the IMMOBILÉROS podcast, describing the company’s current phase as a “tense period” requiring adjustment and clear strategic focus.
Gripp confirmed that the operator, which has built a national network since its founding in 2008, is now “under special financial observation.” Occupancy rates are below expectations in some locations, prompting the decision to halt new openings for the time being, though he noted there are waiting lists in certain sites where demand is stronger.
Between 2020 and 2023, Design Offices grew from 40 to 50 locations all over Germany.
According to Joachim Gripp, a key factor driving pressure on the business is index-linked rent agreements, characterized as a “dangerous misunderstanding.” With inflation pushing up lease costs, he called for political action, pointing to international markets where governments have intervened.
The competitive landscape is also shifting.
Subletting by landlords and companies releasing surplus space has become an “aggressive” form of competition, offering terms that directly rival coworking operators. This trend adds another layer of challenge for flexible office providers already under pressure to adapt.
At the same time, Gripp argued that the role of the office itself is changing. Businesses are increasingly asking what value they want from office space, leading to a move towards “smaller, but better” workplaces that prioritize quality and functionality.
Looking ahead, one area of opportunity may be international tenants, especially from China. Joachim Gripp said he was impressed by the plans and knowledge of Chinese companies about the German market, suggesting they could become a significant customer base.
Joachim Gripp will be a keynote speaker at the upcoming Coworking Europe 2025 in Berlin (Nov 19-20).
Pic source: Design Offices website
