Providing office space flexibly would be approximately 50 % more profitable than leasing premises out in the traditional sense , according to research and advisory firm Green ##house . It used data gleaned from London and Europe on the Ebitda margins of co - working firms to reach its conclusions . It found an occupancy rate of around 80 % was sufficient for increased profitability compared with a traditional lease in most cities . “Significant scale, know-how and brand awareness would be required to operate profitably, and providers like WeWork are already miles ahead on all of the above However , the firm also found buyers required higher capital rates for offices run purely as flexible workspaces , sometimes as much as 50 % above what was needed for traditionally leased offices .
Providing office space flexibly would be approximately 50 % more profitable than leasing premises out in the traditional sense , according to research and advisory firm Green ##house . It used data gleaned from London and Europe on the Ebitda margins of co - working firms to reach its conclusions . It found an occupancy rate of around 80 % was sufficient for increased profitability compared with a traditional lease in most cities . However , the firm also found buyers required higher capital rates for offices run purely as flexible workspaces , sometimes as much as 50 % above what was needed for traditionally leased offices .