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Home Press

8% Increase In Flexible Workspace Supply In Denver

by Allwork.Space - Press
April 22, 2019
in Press
Reading Time: 5 mins read
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Press Release

The flexible workspace market in Denver is growing, with an increase of 8% in flexible workspace supply

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Supply of flexible office space has increased by 8% in Denver as businesses of all sizes look to secure agile office space in prime locations, according to a report by Instant Offices. Significant demand for serviced offices, and in particular hybrid space, has seen average desk rates become highly competitive across the city.

As reported in the 2018 Annual US Market Summary, Denver outpaced others as the city with the highest desk rates overall between 2016 and 2017. At $1255 per person, average desk rates in the Colorado capital soared compared to neighboring Arizona and Kansas at $510 and $470 respectively, even rising higher than New York City, which is traditionally the most expensive location in the US.

Much has changed, however, and over the last year, the explosive global growth of the flexible workspace industry has seen major shifts occur across the board as more competitors enter the market. As one of the fastest growing cities in Colorado, a thriving tech hub and a center of significant development of new office space, Denver is no exception. As the market continues to scale, increased competition has seen desk rates contract across key areas, giving the city a competitive edge that’s only set to grow, with average desk rates now at $664 on average.

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Number of Flex Spaces in Denver Overall: 91

Flexible Office Market Growth in 2018 Overall Serviced Coworking Hybrid
Denver City Overall 8% 2% No Change 16%
Downtown 12% 13% No Change 14%
Tech Center 9% No Change No Change 100%
Glendale 10% No Change No Change 100%

Average Desk Costs

Area Average Desk Cost
Denver City Overall $664
Downtown $739
Tech Center $754
Glendale

$480

There is an estimated 80 million square feet of flexible office space in the US, making it the largest market in the world. Over the last few years, the country’s largest markets in New York, Texas and California have expanded even further, while emerging markets in states like Colorado, Massachusetts, Missouri and Louisiana have seen considerable growth in desk rates.

At the same time, demand for flex space has increased as more corporates and international firms swap the constraints of traditional offices for low-cost, low-risk flexible options. To meet this growing demand, independent and niche operators have launched new spaces or collaborated with providers across the country to produce a mix of co-working spaces, serviced offices and hybrid spaces.

Denver experienced little to no change in the number of co-working spaces in the last 12 months, while explosive interest in hybrid space has seen the number of centers rise by 100% in East Greenwood Village, Denver Tech Center, Glendale and the University area.

This type of flexible space is high in demand by corporate companies who want the feel and flexibility of a co-working space, but with the privacy of a dedicated private office.

Additional research by Instant Offices, which collates more than 20 years of data, shows businesses can save up to 73% by choosing flexible office space over conventional leased space in the world’s major cities.

Flexible Office Space in Denver

According to a report by Business.org, Denver ranks 10th on a list of 40 as one of the top US cities for entrepreneurs and start-ups, while the city is also home to major corporations like Boeing, PepsiCo and Nestle.

Flexible office space is well distributed throughout the city, with areas like Downtown and Glendale seeing double-digit growth in the number of centers available overall in the last 12 months.

Downtown

Average Desk Cost: $739

Denver’s financial and commercial district, and home to some of the city’s most famous landmarks. Downtown Denver also serves as the city’s cultural hub.

Tech Center

Average Desk Cost: $754

Home to major businesses and corporations in tech and communication, Denver’s Tech Center is a sought-after area for office space.

Glendale

Average Desk Cost: $480

Outstanding infrastructure and convenient access makes Glendale a popular business destination. The area is home to several thriving tech and entertainment industry clusters.

About The Instant Group: Flexible Workspace Specialists

Founded in 1999, The Instant Group is a workspace innovation company that rethinks workspace on behalf of its clients injecting flexibility, reducing cost and driving enterprise performance. Instant places more than 7,000 companies a year in flexible workspace such as serviced, managed or co-working offices including Sky, Network Rail, Capita, Serco, Teleperformance, Worldpay making it the market leader in flexible workspace.

Its listings’ platform Instant Offices hosts more than 12,000 flexible workspace centres across the world and is the only site of its kind to represent the global market, providing a service to FTSE 100, Fortune 500, and SME clients.  With offices in London, Newcastle, Berlin, Haifa, Dallas, New York, Miami, San Francisco, Hong Kong, Sydney, Singapore, and Kuala Lumpur, The Instant Group employs 230 experts and has clients in more than 150 countries. It has recently been included in the 2018 Sunday Times’ HSBC International Track 200.

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