It’s always fascinating to take a numerical look at the growth of Coworking in the office market. Earlier this year, the Yardi Matrix team put together an in depth analysis of the top markets for Coworking, and upcoming trends in the industry.
Now, the Matrix team has researched 20 of the largest U.S markets, and detailed exciting new data about just how widespread and popular Coworking has become.
What they found was that 43.5 million square feet of shared office space was being rented in Q4 2018. In just one calendar year, this number jumped by an astonishing 62%. The total now represents about 1.7% of the total office market in these areas. Coworking is now up to 2.2% of the office market in urban areas, and 1.2% in suburban.
The gulf between amount of Coworking space in Manhattan and the next biggest market continues to grow. Manhattan has 13.7 million square feet, while Los Angeles came in second with 4.7 million. This isn’t to say the other 19 markets in the study aren’t thriving in and of themselves, but Manhattan’s domination of the industry shows no signs of slowing down.
The other markets in the top 5 for percentage of total office space include Portland, Miami, and San Francisco.
The study attributes Coworking’s growth, in part, to a ‘gig economy’ of freelancers, independent workers, and corporations deploying workers remotely.
Furthermore, its becoming more evident that the business model is catching up to members’ and operators’ demands. Landlords and brokerage firms are offering more amenities and flexible lease terms than ever before.
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