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how the Coronavirus is impacting the Flex Workspace industry globally.
The following charts illustrate the impact on consumer's demand. The first chart shows the evolution of Google searches for "coworking". The first three months of 2020 are in steep decline compared to previous years.
The evolution of online visit to the largest operators' website is also a proxy of the demand for flexible workspaces. We rebased the traffic in base 100 as of January, 1st 2020. In March 2020, while Industrious is holding on, WeWork, Spaces, Regus and Knotel all see a drop in traffic from -10% to -40%. In June 2020, the largest global and US brands saw a moderate uptake of online traffic. Industrious appear as outliers with more traffic in June than in Jan' 20, while WeWork lags behind. Spaces / Convene stands at 70% of their Jan ´20 traffic.
The following chart gives an indication as to the proportion of traffic coming from existing users as opposed to consumers looking up the company. The share of direct traffic is indeed likely to be higher when more users visit the website to book a meeting room, download an invoice or connect to the live feed. Regus and WeWork have relatively high share of direct trafffic, which might indicate that the drop in visit seen above (-10% and -35% respectively) represents a proportional cancellation of contracts. Regus thus seems to have kept a relatively lower churn than WeWork so far.