The cost-per-desk for flexible workspace is following a bifurcated path, with prices declining in gateway cities while increasing in the secondary markets that are attracting businesses and people.
While New York City's Midtown market (-29%), Washington, DC (-23%), Boston (-22%) and Los Angeles (-18%) saw a significant decrease in the cost per desk, Phoenix (39%), Nashville (14%), Denver (11%) and Austin (3%) recorded gains, according to The Instant Group's US Market Summary.
The Instant Group's report also shows that during the pandemic, flexible workspace is moving closer to where people live—such as in the suburbs—as opposed to inside the gateway cities. For instance, while demand for flexible office space dropped by 14% in New York City in 2020, it rose in areas of Westchester, NY, Connecticut and New Jersey.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
