Flexible Office Leasing Activity Has Another Strong Quarter
 

  • Flexible office leasing activity totaled 4.0 million sq. ft. in Q3, up 9.4% from the prior quarter and up 4.0% from Q3 2018.

 

  • More than 98% of flex leasing activity in Q3 was in new leases or expansions. A single operator, WeWork, accounted for 69% of all flex leasing activity in Q3.

 

  • Manhattan, Los Angeles and Dallas/Ft. Worth accounted for 38% of all flex leasing activity in Q3, with Manhattan alone accounting for 21%. Rolling four-quarter totals for most major markets were up an average 54%, with the national average increase at 43%.

 

  • Flex leasing in the four quarters ending in Q3 2019 increased by 1.2 million sq. ft. from the same period last year.

 

  • Detroit, Miami and Salt Lake City all had year-over-year increases in leasing of more than 700%. Markets with the largest absolute increases in leasing over the past year were Manhattan (947,700 sq. ft.), Los Angeles (646,300 sq. ft.) and Washington, D.C. (568,300 sq. ft.).

 

  • Flex startups Venture X, Office Evolution and Bond Collective each leased 200% more space over the past year, with the largest absolute increases in leasing by WeWork (4.2 million sq. ft.), Knotel (800,000 sq. ft.) and CommonGrounds Workplace (303,000 sq. ft.).