Homelessness increases --> any place where you can just hang out without paying attracts more homeless people --> there are too many homeless people hanging out for hanging out to remain good for business --> cheap hangouts close --> expensive hangouts like co-working spaces become viable.
We've been seeing that here in my Northern California city for the past few years.
If anything local governments should provide more for these populations, showers at libraries and pop up clinics would do wonders.
Of course the bigger issue would be housing costs going straight to the moon. Rent should be 70% of what it is.
Ideally you'd plug them into housing assistance programs so the overall numbers of homeless go down overtime.