AFTER a tough time during the pandemic and months of financial instability, Indonesian co-working startup CoHive finally reached the end of its rope and was declared bankrupt in January.

The fall of CoHive, once Indonesia’s largest co-working operator, sent chills throughout the industry. Some observers might be quick to declare the co-working business model unviable, but the event is just one sign of how much the co-working landscape has evolved and remains in a state of flux.

The pandemic changed working styles for good, to the benefit of flexible workspace operators. But it was also a stark lesson about the risks of getting locked into long-term leases when times are bad and office demand plunges.