Flexible Workspaces Continue to Grow

Michelle Bodick, managing director, sales and marketing (Americas), the Instant Group

NEW YORK CITY—There are more than 300 serviced office locations in Manhattan alone, and globally on a daily basis, three new flexible space offices open every day, according to Michelle Bodick, managing director, sales and marketing (Americas) of the Instant Group, an international workspace consultancy.

In a GlobeSt.com interview, Bodick cited a JLL report that notes although flexible space currently accounts for less than 5% of the current national office inventory, this figure could rise to 30% in 2030 due to tenants’ demands. The report also states in 2017 flexible office space grew three-fold to 3.1% in terms of the annual US office leasing activity, compared to two years ago when it was at 1.3%.

2017 marked a significant year for the flexible workspace industry. WeWork’s purchase of Lord & Taylor’s Fifth Avenue flagship store to relocate its headquarters jolted brick-and-mortar retail with its statement of disruption. WeWork increased its space at its Midtown office at 575 Fifth Ave. It won a $4.4 billion investment from SoftBank, while WeWork India received $15.6 million from the Embassy Group.

Last year also saw Blackstone’s $640 million purchase of The Office Group, which provides workspace in 36 buildings in London.