101 Fifth Ave./ Image: Google Maps, office building where Knotel recently leased two floors
NEW YORK CITY—A May 2019 CBRE report on co-working lists the top US flexible-space markets: Manhattan, Los Angeles, Washington, DC, Chicago, Boston, San Francisco, Dallas/Fort Worth, Seattle, Denver and Atlanta. These 10 markets which account for 70% of co-working inventory across the country experienced 25% overall growth in 2018.
The top five operators in the US in terms of leased office space by square foot are WeWork, Regus, Spaces, Knotel and Industrious, according to CBRE. The brokerage firm notes WeWork, Regus and Spaces have a 50% share of the flexible office space inventory, with Knotel and Industrious holding 10%.
Large corporations are more aggressively exploring flexible space. The 2018 Americas Occupier Survey found 85% of real estate executives plan to add flexible office space to their portfolios. CBRE adds, “If these strategies prove successful, there is potential for more explosive growth of co-working.”
Holding the top spot, Manhattan accounts for 25% of all national co-working inventory, which amounts to 4 billion square feet across 54 major metropolitan areas. Last year, Manhattan added 4 million square feet of co-working space.
The advisory firm's research comes following news of WeWork's preparing for an IPO, and WeWork's agreeing with RXR to a new partnership for flexible office space across four floors at 75 Rockefeller Plaza.
In recent flexible office deals, on Thursday Knotel announced a 14,160-square-foot, long-term lease at 101 Fifth Ave. from Eretz Group. The lease covers the entire fourth and fifth floors at the 11-story building. Newmark Knight Frank's Greg DiGioia and Michael Morris represented Knotel.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
