Catlin oversees the firm’s Commercial Leasing Division and says there is still “significant demand” for co-working office space in Boston.
It definitely will not strengthen at the rate that WeWork was absorbing space for.
There’s a lot of other players wishing to take a role in this space.
”On Tuesday, news emerged that WeWork, which was slated to become one of the year’s hottest IPOs, will be bailed out by SoftBank at deal valuing the co-working space at less than $8 billion.
“I think there’s a huge barrier to entry now, because we’re working on a number of different transactions on different sides of these transactions where everybody has been reading the WeWork debacle and nobody wants to talk to anybody in flexible workspace, in regional HQ space or anything.
So anybody in this space is fighting a bit of an uphill battle, because what landlords are looking for now is a colossal amount of security deposit because of the WeWork effect.
The so-called WeWork effect should eventually lead to a right-sizing of deals, according to Catlin.