Yardi Matrix Special Report Spotlights Shared Space’s Steady Growth

Segment tops 93 million square feet in U.S.; suburban markets present new opportunities

SANTA BARBARA, Calif., Nov. 8, 2019 – Shared space is on the rise, driven by the gig economy, burgeoning technology-sector employment, corporations seeking lease flexibility and other factors. This segment is the subject of a new Yardi® Matrix special report based on leases for 5.5 billion square feet of office space in the top 50 U.S. markets.

The report shows that coworking accounted for one-third of office leases over the last 18 months. The top 50 markets contain 93.2 million square feet of space, representing 1.7% of total office space. The metros having the most shared space as a percentage of stock are New York City boroughs Manhattan and Brooklyn with 3.9% and 3.7%, respectively; Miami is close behind with 3.5%.

Manhattan, with 17.3 million square feet, is the top metro for coworking space, followed by Los Angeles, Washington, D.C., Chicago and Boston. Manhattan has added 4.1 million square feet of working space since the fourth quarter of 2018, followed by Los Angeles (2.7 million square feet), San Francisco and Dallas (1.2 million square feet each), and Atlanta and Miami (1.1 million square feet each).

While highly visible turmoil surrounding industry leader WeWork fosters the impression that the entire business model is at risk, “most signs point to coworking as a growth industry that remains in the early stages of development,” the report says, noting that the practice “is expanding especially rapidly within large markets [and] is also gaining steam in the suburbs. As the industry matures, we expect that coworking will rise in suburban office markets.” New business models, such as establishing coworking properties in shopping malls and other non-traditional settings, are emerging as well.

Get up to date on this dynamic industry with the Yardi Matrix special report, titled “Shared Space: Coworking’s Rapid Growth Set to be Tested.”

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, industrial, office and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.