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Flexible Workspace Market Update: Instant Office’s 2019 Global Cities Report

By Amanda Fanoun
06.08.19 ·

Instant Offices, the leading provider of data and trend reporting in the flexible workspace market, has just released their Global Cities Report. In this study, they reviewed the trends and market drivers across the 18 most active flexible workspace cities globally. In this blog, we highlight a few key stats that underpin the coworking market.

The Largest Markets for Flex-space

The Global Cities Report is based on an analysis of the following 18 global cities, which according to Instant, represent the largest markets for flexible workspace.

  • Los Angeles
  • Chicago
  • New York
  • San Francisco
  • Toronto
  • London
  • Paris
  • Melbourne
  • Sydney
  • Madrid
  • Singapore
  • Beijing
  • Hong Kong Island
  • Shanghai
  • Berlin
  • Mumbai
  • Dubai
  • Tokyo

Flex-Space Supply and Demand

This report details how supply and demand are impacting the flexible workspace market. Increase in new supply across key markets has reached approximately 16%. In addition to the measure of increased supply, James Rankin, Head of Research at Instant Offices, predicted continued growth in the market. He notes the minimal amount of flexible space versus total square feet of office inventory within major city markets.

The Expected Impact of Changing Demographics

Instant took a global look at the demographics driving change within the market. Notably, the rise of the Chinese economy and, specifically, how increasing incomes and changing attitudes towards business practices are expected to drive demand beyond that of Western markets. Instant compares current pricing and pressure struggles in the APAC flexible markets to similar growing pains experienced decades ago in US and EMEA markets.

Pricing Adjustments

Instant reports that “The Market Takes a Pause” in reference to cooled pricing in key locations over the past year. Where supply has increased by 20% or more, desk prices have fallen 5% on average during the same period. This is attributed to increased competition and aggressive pricing and discounting to keep occupancy levels up. Instant also notes price cooling to new centers expanding outside of Central Business District areas where their cost base is lower.

Interestingly, there are two extremes in the pricing growth spectrum (for 2018 desk rates) according to Instant data: Chicago fell by 17% to $707 and Tokyo desk rates sky-rocketed 19% to $991. Meanwhile, still holding strong as the most expensive global market, New York desk rates fell by 4% to $1,063.

Key Flexible Workspace Market Stats

Instant Offices’ latest global cities report discusses stats that define our market as we know it today. Below we’ve highlighted the most important numbers for you to know. Read on and click to tweet!

[click_to_tweet tweet=”There are more than 5,000 #FlexibleWorkspace operators globally with over 30,000 centers @TheInstantGroup #Coworking #flexspace” quote=”There are more than 5,000 operators globally with over 30,000 centers.”]

[click_to_tweet tweet=”Over 23% of #FlexibleWorkspaces are located in the leading 18 global markets @TheInstantGroup #Coworking #FlexSpace” quote=”Over 23% of #FlexibleWorkspaces are located in the leading 18 global markets “]

[click_to_tweet tweet=”NYC is still the most expensive flexible workspace market per desk in the world @TheInstantGroup #FlexibleWorkspace #Coworking ” quote=”NYC is still the most expensive flexible workspace market per desk in the world “]

[click_to_tweet tweet=”Pricing is 5% down on average across the key global #flexibleworkspace markets @TheInstantGroup #Coworking #FlexSpace ” quote=”Pricing is 5% down on average across the key global flexible workspace markets”]

[click_to_tweet tweet=”#FlexSpace supply has increased on average by 20% across the global flexible workspace cities @TheInstantGroup #Coworking #FlexibleWorkspace” quote=”Flex-space supply has increased on average by 20% across the global cities.”]

[click_to_tweet tweet=”Larger requirements for 10+ desks now make up approximately 1/5 of total market demand in the global cities @TheInstantGroup #Coworking #FlexibleWorkspace” quote=”Larger requirements for 10+ desks now make up approximately 1/5 of total market demand in the global cities”]

[click_to_tweet tweet=”Growth in the supply of centers remained at 17% in London and 20% in New York City @TheInstantGroup #FlexSpace #FlexibleWorkspace #FutureofWork” quote=”Growth in the supply of centers remained at 17% in London and 20% in New York City”]

[click_to_tweet tweet=”EMEA remains the largest flexible workspace market by number of centers @TheInstantGroup #FlexibleWorkspace #Coworking #FutureofWork” quote=”EMEA remains the largest flexible workspace market by number of centers”]

 

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