The hybrid office: A major shift is under way in the U.S. office market
Walk into any of WeWork’s offices to find artisan coffee, shuffleboard and foosball tables, free food, a wine cellar, contemporary artwork, and open communal space that resembles the studio floor of a cutting-edge furniture shop. The tenants are mostly Internet startups that pay for office space by the month and thrive on being surrounded by like-minded companies. Currently this type of office space is a relatively small segment of the U.S. office market. It elucidates our view that the U.S. office market is in the midst of a secular shift that will propel hybrid office space to outperform traditional office space.
Hybrid office space incorporates elements of both traditional space and the “creative” office space typified by WeWork. Office occupiers from all types of industries are driving this secular shift by demanding the “right” mix of collaborative versus private space, natural light, and amenities such as juice and coffee bars in their offices. Traditional off