CBRE’s latest research “Beyond Coworking” takes a look at Manhattan’s flexible workspace market, stating that flexible workspace solutions are now Manhattan’s fastest-growing industry. The research “examines the evolving flexible space landscape and its impact on the Manhattan office market, where flexible workspace operators continue to rapidly lease space.”
Globally speaking, New York City is one of the most expensive and largest flexible workspace markets. According to CBRE, 2017 was the “third consecutive year in which the flexible space sector leased more than one million sq ft. in Manhattan.” Today, the sector occupies 9.2 million square feet, having grown approximately 600% since 2009, with 65 different operators running over 260 workspace locations in Manhattan alone.
Moreover, “the sector has averaged an annual growth rate of 22%. If this rate continues, the footprint of flexible space operators could reach 15 million square feet by the end of 2020, or approximately 4% of Manhattan’s total occupied office space.”
Much of this growth, according to CBRE, can be attributed to WeWork alone. “WeWork is the largest flexible space operator in Manhattan, with 4.1 million sq. ft., or 45% of market share as of Q1 2018 — more than the next 10 operators combined.” And not surprisingly, WeWork continues to grow — in Manhattan and the rest of the world. In Manhattan, the coworking giant “closed five transactions for approximately 562,00 sq ft.,” which makes it the 6th largest occupier in the city.