[bctt tweet=”A new CBRE report “Let’s Talk About Flex: The U.S. Flexible Office Market in 2019” has revealed the massive impact the industry has made on New York’s office leasing market.” username=”allwork_space”]
The report found that flexible space leasing takes up 3.6% of Manhattan’s total office leasing inventory, compared to the less than 2% worldwide.
“The modern idea of coworking grew out of the financial crisis,” said Nicole LaRusso, director of Research & Analysis for CBRE’s tristate region. “As people were getting laid off, they had to be self-employed, or wanted to start new businesses. They looked around their Manhattan apartments and realized, ‘It’s either here or at a coffee shop. Maybe I can do better.’ That’s what really kicked off coworking, and that had an epicenter here.”
The borough’s flexible office footprint has more than tripled since 2014, reaching 15 million square feet as of H1 2019. This is likely due to the boost in corporate flex office members, as well as serving as a technological hub.
As the country braces for an inevitable economic downturn, flexible office spaces may be there as a support for New York’s office leasing market. While the report said that a recession could negatively impact the sector, many operators will likely lower their costs through renegotiated deals and landlord partnerships.
Overall, the report finds that flexible office space is beneficial to New York, as well as the rest of the nation’s office leasing industry.