Los Angeles is the second largest flexible office space market in the U.S. by square footage, according to a new report from CBRE. The market’s flexible space footprint grew 15% to 4.23 million square feet in 2018. Flexible space now accounts for 2.1% of Greater L.A.’s total office inventory.
In 2018 alone, flexible space in the top-10 markets grew by 25%, with number one Manhattan growing the most on an absolute basis (+four million square feet) and Seattle growing the most on a percentage basis (44%). Growth since the start of this cycle has been constant and is showing no signs of slowing. Flexible-space operators are currently in the market for more than six million square feet of space.
A few national highlights from the report:
– The top 10 flex space markets account for more than 70% of the flexible office stock.
– Flex space in these markets grew 25% in 2018.
– Flexible space as a percentage of total office inventory is roughly 2%.
– San Francisco and Manhattan are the most saturated markets for flexible space, with more than 3% each.
– The top-five operators by square footage are WeWork, Regus, Spaces, Knotel and Industrious. The We Company (WeWork) and IWG (Regus and Spaces) hold 50% of the U.S. flexible-office inventory. Knotel and Industrious have another 10%.