Coworking Poised for Significant Growth; Gateway Markets’ Inventory Could Triple
Coworking inventory has grown substantially over the past three years. In fact, half of all current U.S. coworking space has opened since early 2015, with more than five million square feet of new space coming online each of the past three years, according to new research. Cushman & Wakefield’s “Coworking and Flexible Office Space” report shows another three million square feet of new space opened in the first half of 2018.
Cushman & Wakefield’s Revathi Greenwood says, “Based on current near-term projections, coworking space could easily triple from its current share in gateway markets over the next decade. Total inventory could increase to over 5% of office space in many urban markets and as high as 10% in some markets.”
In the largest U.S. coworking market, Manhattan, coworking space accounts for less than 3% of office space. The other gateway markets are in a similar range with somewhere between 1% and 3% of office inventory in coworking space. Roughly half of all coworking inventory is in the six gateway markets: Manhattan, Los Angeles, San Francisco, Chicago, Washington, DC, and Boston. Non-gateway markets with over one million square feet of coworking space include Atlanta, Dallas/Fort Worth, Denver, San Diego and Seattle.
Despite this growth, coworking still accounts for only 1%, or 47.8 million square feet, of the total five billion square feet of office inventory across the 87 markets tracked by the firm.
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