Small businesses oftentimes rely on co-working spaces, which are facing two issues during the Coronavirus Disease 2019 (COVID-19) pandemic.

  1. Some co-working spaces are staying open in the event that any of their users provide essential services – does this warrant charging continued fees to all users? Furthermore, because shared spaces may challenge company-wide safety guidelines, does this risk the well-being of space users?
  2. Small businesses typically do not have the same degree of insurance, cash reserves, and other safeguards as large businesses. Therefore, an inability to terminate co-working space contracts early may be a significant cash burden to small businesses.

In short, small businesses should consult with counsel to better understand what rights may warrant an early termination of their overall office and other related third-party contracts to effectuate an early termination, fee discounts for the term of their corresponding contract during the COVID-19 pandemic, or a temporary cancellation of their contract.