Flexible office space, as embodied by companies such as WeWork, has captured the fascination of landlords, tenants and investors. CBRE has released a number of reports on this topic and their lead author has been was CBRE executive Julie Whelan.
What is the current state of flexible office space?
Flexible office space in the United States is just under 2 percent of office space; 60 percent of space is in downtown versus suburban markets. Downtown markets are also a bit more penetrated with just under 3 percent of office space dedicated to flexibility. The largest market by far for this space is Manhattan with Los Angeles, Chicago, Boston and Dallas rounding out the top five. Yet, it is a really important to remember that despite all this growth even the most penetrated market of San Francisco is only at 4 percent penetration.
The flexible office space model today has a lot of variation, from a straight shared coworking model focused on community