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Manhattan’s Flexible Office Growth Hits Triple Digits Y-O-Y
Leasing velocity in Manhattan’s flexible space sector is well into triple-digit territory for year-over-year growth. 2018’s total of 4.7 million square feet was up 263% from the year prior, and 163% above the five-year average, according to research by CBRE’s Nicole LaRusso.
With 111 transactions, the sector saw more deals in 2018 than in 2015 through 2017 combined. Total square footage of leasing transactions was more than the sector represented over the preceding four years.
That 4.7-million-square-foot tally represented 18% of total 2018 leasing volume across Manhattan, or triple the share seen in 2017, according to CBRE. Led by WeWork, International Workplace Group’s Regus and Knotel (pictured), which comprise 71% of the sector’s total inventory, there are now over 80 flexible workspace operators throughout Manhattan.
However, all of this growth is occurring from a comparatively small base. CBRE notes that the flexible office sector now accounts for 3.3% of total inventory in Manhattan.
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