Part of CBRE's Agile Real Estate Knowledge Hub
Activity by Flex Providers Drops Significantly in Q2 2020
- As government restrictions have eased across the nation, most flexible office locations are reopening, albeit at reduced capacity and with new design features for social distancing.
- Flexible office space activity1 totaled 347,000 sq. ft. in Q2, just one-third of the previous two quarters’ already muted levels. Flexible office activity fell by 65.8% quarter-over-quarter vs. a 35% decline in total office leasing activity.
- Convene accounted for 31.3% of new flex activity in Q2, followed by Common Desk with 28.6%. For the second consecutive quarter, WeWork—the largest flex provider—took no space. Only five operators contributed to new space activity nationwide.
- Only seven markets logged activity in Q2. Many previously active markets like San Francisco had none. Manhattan, which had averaged more than 4 million sq. ft. of new activity annually since 2018, only had one new deal for 13,000 sq. ft. in Q2.
1 Flexible office space committed to via a traditional lease agreement, other management or partnership agreement, or owner/operator building purchase.
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