Flex-office Sector Expected to Grow as Companies Rethink Their Portfolios: CBRE
Originally published by Michael Tucker on October 26, 2021, for Mortgage Bankers Association.
CBRE, Dallas, said the flex-office sector is poised to benefit as companies adapt their office portfolios to accommodate more flexible work practices.
“The flex-office sector is weathering a challenging office market to emerge with a bright outlook,” said Julie Whelan, CBRE Global Head of Occupier Research. “Flex-space providers are well positioned to meet the need for companies to accommodate evolving employee work patterns while remaining nimble to change course if needed.”
Whelan noted flex-office providers have spent the past year trimming excess or unprofitable locations from their networks, resulting in a collective reduction of 10.1 million square feet of flex space in 40 cities in the U.S. and Canada. The industry now spans roughly 70 million square feet in North America, just under 2 percent of the overall office market.