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Rosengren Warns Co-Working Spaces May Be Creating Financial Risk

A WeWork space in Gurugram, India.

A WeWork space in Gurugram, India.

Photographer: Ruhani Kaur/Bloomberg

The rise of co-working spaces like WeWork may be creating new financial-stability risks, according to Federal Reserve Bank of Boston President Eric Rosengren.

“Evolving market models, along with low interest rates, are creating a new type of potential financial-stability risk in commercial real estate,” Rosengren said Friday in remarks prepared for a speech in New York. “One such market model is the development of co-working spaces in many major urban office markets,” he said, without mentioning WeWork by name.