According to the Reuters article 'Coworking' surge in Manhattan raises asset-liability quandary:
"The amount of office leasing by “coworking” firms in Manhattan is nearing 10 percent of all new leases, a sign of growing demand for short-term contracts by companies seeking workspace ..."
As the article chart below shows, coworking's share of new office leases in Manhattan has grown 4x over the past 5 years.
This surge is leading to questions about whether coworking is reaching a saturation point.
For example, Savills Studley’s Q2 2018 Manhattan Office Report says:
“Like other new innovations the ultimate market share of shared office space is not known, but this growth path seems unsustainable. Even without a recession, coworking will reach a saturation point in the next several years, forcing some level of retrenchment in the footprint of these trailblazers.”
But despite the strong growth of coworking in New York, it’s still lags well behind London in terms of market penetration.
The chart below comparing the two cities comes from Cushman & Wakefield’s report Coworking 2018 – The Flexible Office Evolves. Based on this data, New York has room for more coworking space.
We think coworking in nowhere near the saturation level.
But as we point out in our most recent coworking forecast, we're expecting coworking’s growth in the U.S. and Europe will slow over the next 5 years.
This is simply what happens when an industry get larger.
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