SANTA BARBARA, California, December 18, 2018 /PRNewswire/ —
Coworking is no longer a trend but a fixture in the U.S. office market landscape, a new special report from Yardi® Matrix illustrates.
In researching 20 metros, Yardi Matrix found that 43.5 million square feet of office space was being rented as of the fourth quarter of 2018. This represented a 62% increase in shared space over the previous year and 1.7% of the total inventory.
The business model for shared space is evolving to match the practice’s growth, with landlords and brokerage firms offering more amenities and flexible lease arrangements. “The sector is in a nascent phase, so the pace of growth is likely to pick up in coming years,” the report says.
The study attributes the growth to an increase in “gig economy” independent workers and employers’ desire to deploy more workers remotely, attract talent and gain more flexibility for their space. Coworking has gained footholds in both urban markets (2.2% of total stock) and suburban submarkets (1.2%).
Manhattan, N.Y., ranked first in both the overall amount of shared space (13.7 million square feet, versus 4.7 million square feet for runner-up Los Angeles) and the percentage of total stock (3%) dedicated to coworking. San Francisco, Dallas and Seattle all had more than 2 million square feet of coworking space, while Portland, Ore., Miami, San Francisco and Austin, Texas, joined Manhattan as leaders in the percentage of stock.
Read the full Yardi Matrix special report, titled “Shared Space: Disrupting the Traditional Office.”
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