Could the new co-working trend eat into office demand? Green Street investigates this in their special report with an estimation of a 2-3% cumulative reduction in demand by 2030.
The most well-known provider of flexible office space, WeWork, has grown significantly from one office in New York in 2010 to more than 160 locations and a $20 billion valuation.
Green Street's study suggests that the co-working trend could be modestly negative for the office business. The trend was instigated by the rise of the independent worker: entrepreneurs, freelancers and small start-ups.
"Folks that previously were working in a coffee shop or their living rooms have been brought into office buildings," states Jed Reagan, the lead analyst for Green Street's office sector coverage.
However, larger corporations are starting to use these space too. Bigger corporate customers may 'outsource' larger components of their core headquarters to co-working operators rather than signing a new lease.
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Article source: Green Street Advisors: Coworking impacts on office demand
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