CommercialEdge’s latest office report shows that coworking spaces are emerging as the one-stop-shop for all workspace solutions in the future of work.
According to the report, shared space made up around 117.5 million square feet of space, or 1.7% of office stock, last month.
Additionally, industries that typically rely on offices added 115,000 new jobs in July, or over 1.5 million jobs year-over-year.
At the end of July, nearly 150 million square feet of space was under construction, while completions for the year came to 28.7 million square feet. Of these spaces in the pipeline, 42% were located in the suburbs.
Despite the spike in suburban office stock, the report forecasts that developments in these areas will fall in the coming years. This is likely due to the Great City Exodus slowing down as society attempts to return to normal.
In addition to the growth in total footprint, office vacancies have risen to 15.1%, an increase of 10 points from the same time last year.
The growth in demand for shared offices is tied to various factors, including the desire to cut costs, the wide embrace of remote and hybrid work arrangements, as well as the employee demand for more flexibility in the work day.