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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.
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