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CBRE has made a $100-million investment in flexible workspace leader Industrious

Flex and Co-working Providers Face Downturn in Manhattan and Globally

Amid the spread of COVID-19, the major flexible office and co-working providers have made moves toward downsizing both their workforces and their leased space. However, it’s too early to gauge the impact these actions will make on these providers’ sizable Manhattan presence, says Avison Young in its first-quarter Manhattan office report.

The report by Avison Young’s Marisha Clinton quotes a WeWork spokesperson as saying the firm is “conducting an in-depth review of operations and assets globally.” Similarly, Industrious recently announced a 30% workforce reduction, while Knotel recently announced a 50% reduction of its staff amid the COVID-19 pandemic.

“Whatever additional real estate portfolio changes lay ahead for flexible office and co-working providers, we do know that government-mandated quarantines will continue to have an impact on such operators, as they are with so many other businesses across Manhattan and around the rest of the globe,” Clinton wrote.

Pictured: An Industrious space in Manhattan.

For comments, questions or concerns, please contact Paul Bubny

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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