A new report from CBRE has revealed that Manhattan’s flexible office space footprint has tripled to 15 million square feet over the last five years.
Manhattan maintains to have the largest flex office market and the second most penetrated market in the country. Additionally, Manhattan’s flexible office inventory grew by 9.5% in the first half of the year, which is likely being driven by medium and large corporate users.
CBRE’s report indicates that the 10 largest flex markets will continue to grow faster than other markets, growing 70% since 2017 compared to 43% in other markets.
Going forward, more operators are looking to enter long-term lease agreements with landlords.
“Flexible office space is no longer a niche offering hidden among building stacks of long-term leases,” said Nicole LaRusso, CBRE’s Tri-State Director of Research & Analysis. “Not only is it prominent in the buildings that it occupies but it is also at the heart of real estate strategies from landlords to corporate occupiers.”
