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There is No Coworking Without Workers
Let's walk through the flexible office presence, players and places in key U.S. markets.
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Major Market Insights
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The
Flex
Machine
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80%
think that Wi-Fi
is important
Dissatisfied with air quality,
noise levels and temperature
think their office improves
their productivity
Comfort of work area,
cleanliness and lighting
are most important
think a quiet space
is important
Only 62% are
satisfied with their workplace technology
76%
40%
WASHINGTON, DC
of the 3.0 MSF of office space controlled by flexible providers, 73% is in the core DC submarkets (East End & the CBD)
3.0
million square feet of total flexible options
of total office
inventory
2.4%
(Select market below and click on bars for provider value)
03
Flex Provider Market Share WeWork Dominates!
NEW YORK CITY
WASHINGTON, DC
SAN FRANCISCO
CHICAGO
ATLANTA
HOUSTON
LOS ANGELES
ORANGE COUNTY
Square feet of inventory (millions)
Spaces
Regus
Convene
Knotel
WeWork
0.0
2.0
4.0
6.0
8.0
10.0
Square feet of inventory (millions)
Carr Workplaces
Convene
Make Offices
Regus
WeWork
0.0
0.2
0.6
0.8
1.0
1.4
1.2
0.4
Clearly dominant but nosediving from grace. WeWork accounts for 45% of flexible space profiled in this report. Its future growth remains in question and will undeniably be more muted. Some markets have more exposure than others, with New York topping the chart on total square footage occupied.
WeWork Exposure,
What's Your Market Risk?
04
Square feet of inventory (millions)
Spaces
Regus
Knotel
WeWork
0.0
0.5
1.0
1.5
Square feet of inventory (millions)
Novel Coworking
Industrious
Convene
Regus
WeWork
0.0
0.2
0.6
0.4
0.8
1.0
1.2
NEW YORK CITY
05
What's Next?
Top Transactions Landscape Sure
to Change
Square feet of inventory (millions)
10.0
5.0
0.0
NYC
DC
SF
CHI
ATL
HOU
LA
OC
WeWork accounted for 67% of all leasing by flexible space providers through Q3 2019, including every single one of the top 10 largest transactions profiled to the right
Stay tuned for updates throughout 2020 as we watch closely for fallout as the flex machine powers forward, with or without WeWork in tow
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NEW YORK CITY
437 Madison Avenue
362,197 SF
Q3 2019
Savills helps organizations find the right solutions that ensure employee success. Sharply skilled and fiercely dedicated, the firm’s integrated teams of consultants and brokers are experts in better real estate. With services in tenant representation, workforce and incentives strategy, workplace strategy and occupant experience, project management, and capital markets, Savills has elevated the potential of workplaces around the corner, and around the world, for 160 years and counting. Amplify the power of people.
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NYC
DC
SF
CHI
ATL
HOU
OC
LA
NEW YORK CITY
million square feet of total flexible options
14.0
of total office
inventory
3.1%
of the 14.0 MSF of office space controlled by flexible providers, nearly half is in Midtown
SAN FRANCISCO
million square feet of total flexible options
2.9
of total Savills tracked office inventory
3.6%
of the 2.9 MSF of office space controlled by flexible providers, 65% is in the Financial District
CHICAGO
million square feet of total flexible options
3.4
of total office
inventory
2.4%
of the 3.4 MSF of office space controlled by flexible providers, 49% is in The Loop (East, West & Central Loop)
ATLANTA
million square feet of total flexible options
1.3
of total office
inventory
2.2%
of the 1.3 MSF of office space controlled by flexible providers, 65% is in the Midtown Submarket
HOUSTON
million square feet of total flexible options
3.0
of total office
inventory
1.6%
of the 3.0 MSF of office space controlled by flexible providers, 86% is in the Suburban submarkets
LOS ANGELES
million square feet of total flexible options
4.9
of total office
inventory
2.3%
of the 4.9 MSF of office space controlled by flexible providers, 76% is in the CBD (Primarily Downtown LA and West LA)
ORANGE COUNTY
million square feet of total flexible options
1.6
of total office
inventory
1.9%
of the 1.6 MSF of office space controlled by flexible providers, 60% is in the Airport Area Submarket
Square feet of inventory (millions)
Peachtree Offices
Industrious
Spaces
Regus
WeWork
0.0
0.1
0.4
0.2
0.5
0.6
0.7
0.3
Square feet of inventory (millions)
Spaces
The Cannon
WeWork
Regus
Workstyle
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Square feet of inventory (millions)
The Camp
Premier
Spaces
Regus
WeWork
0.0
0.5
1.0
1.5
2.0
2.5
Square feet of inventory (millions)
Spaces
Techspace
Regus
Premier
WeWork
0.0
0.1
0.2
0.3
0.4
0.5
WASHINGTON, DC
SAN FRANCISCO
CHICAGO
ATLANTA
HOUSTON
LOS ANGELES
ORANGE COUNTY
8,089,000
2,140,000
875,000
620,000
608,000
WeWork leases over
three times more space than any other flexible provider
49%
32%
19%
Midtown
Midtown South
Downtown
NEW YORK CITY
199 Water Street
Q1 2019
200,000 SF
LOS ANGELES
5750 Wilshire Boulevard
Q3 2019
158,000 SF
CHICAGO
167 N Green Street
Q2 2019
140,000 SF
WASHINGTON, DC
1333 New Hampshire Avenue, NW
Q1 2019
134,000 SF
WASHINGTON, DC
655 New York Avenue, NW
Q3 2019
131,000 SF
LOS ANGELES
3000 W Olympic Boulevard
Q2 2019
112,000 SF
WASHINGTON, DC
200 Massachusetts Avenue, NW
Q2 2019
111,273 SF
WASHINGTON, DC
1100 15th Street, NW
Q1 2019
109,943 SF
02
03
04
05
06
07
08
09
10
NEW YORK CITY
620 Avenue of the Americas
Q2 2019
212,387 SF
(Ownership Interest)
02
45%
Click
on bars
for market value
East End
CBD
Other
42%
27%
31%
Financial District
Other
65%
35%
49%
28%
23%
1,278,000
WeWork leases almost five times more space than any other flexible provider in the market
270,000
159,000
154,000
147,000
1,497,000
WeWork leases over
three times more space than any other flexible provider
469,000
238,000
138,000
1,041,000
WeWork leases almost three times more space than any other flexible provider in the market
370,000
335,000
267,000
195,400
8,089,000
1,278,000
1,497,000
1,041,000
639,000
245,000
2,008,000
470,000
Flexible space meets the on-demand and elastic needs of today’s evolving workforce. Workers love coworking, with all the amenities and community it provides. Corporations love the ability to scale up and down as needed, and leverage flex options to attract the next generation of talent. As a result, providers continue to expand at an explosive pace absorbing large blocks of office space across the U.S. Even with WeWork’s stumbles, the flex machine is here to stay. Still, those stumbles are worth quantifying and tracking, as WeWork alone accounts for 45% of space profiled in this report.
Talent
Coworking
Corporations
Flexibility
's
Flexible Office Market Exploding
The Loop
River North
Other
65%
15%
20%
Midtown
Buckhead
Downtown
Suburban Markets
CBD
86%
14%
Suburban Markets
CBD
76%
24%
Airport Area
South County
Other
60%
8%
34%
639,000
WeWork leases over
three times more space than any other flexible provider
186,000
139,000
125,000
59,000
1,014,000
Workstyle is the dominant player in the Houston market
868,000
245,000
131,000
101,000
2,008,000
WeWork leases over
three times more space than any other flexible provider
598,000
491,000
435,000
143,000
470,000
WeWork and Premier Workspaces are the largest coworking providers in the market
435,000
208,000
162,000
103,000
A Savills and Workthere Report
The cultural shift is undeniable.
Read on to see the current flex presence in eight top U.S. markets, along with potential market exposure given WeWork’s dominance in the space.
Source: CoStar Group
Workthere is a business by Savills, formed in February 2017 to help clients looking for flexible office space.
Combining technology with real people, we provide quality advice to help businesses find the right space to work and grow. Something that's essential in a market with an ever-growing supply of different types of space.
Dom Harding
Head of Workthere Americas
Dom Harding
Head of Workthere Americas
+1 (212) 418 2400
Call on us
info@workthere.com
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With flexible options exploding, the modern workforce is the fuel.
surveyed workers in both conventional and coworking space to identify what workers want. The survey yielded top needs and pain points of today’s workforce. We’ve found that flexible space has evolved to uniquely meet and exceed a number of those demands, reflected in its massive popularity.
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(Click on the purple box below for an expanded view of that market)
By Q4, WeWork signed just two leases across all markets