SANTA BARBARA, Calif.--(BUSINESS WIRE)--Coworking’s growth is the subject of a new Yardi® Matrix study, the first attempt to quantify the amount of office space dedicated to the practice in 20 large U.S. markets.
Shared workspace originated in the 1990s to provide space for self-employed workers and employees traveling or working remotely. The practice expanded after the Great Recession, driven by a growing gig economy, cost-cutting strategies and other factors. Today, the report says, “coworking represents a small yet growing segment of the office market” that helps companies accommodate remote employees, attract talent, promote work satisfaction and reduce leasing costs.
The Yardi Matrix study focuses on office buildings with 50,000 square feet or more in 20 U.S. markets. Eleven of the 20 have more than 1 million square feet of coworking space for lease, led by Manhattan, N.Y., with 7.65 million square feet in 245 spaces and Los Angeles with 3.7 million square feet in 158 locations. Nine other metros have at least 1 million square feet dedicated to coworking. Miami has the most coworking space as a percentage of total stock, at 2.7%.
“Demand is high in markets with concentrations of knowledge workers—especially IT but also new media or industries such as biotechnology and telecommunications—that are friendly to startups [and] in metros where space is at a premium,” the report says, and lower in metros such as Dallas and Houston that have low barriers to construction and high vacancy rates.
Last year, Yardi® acquired WUN Systems LLC, a workspace management platform provider, to help real estate companies leverage shared workspace for improved revenue and customer retention.
View the full Yardi Matrix report, titled “Shared Space: Coworking’s Rising Star.”
Yardi Matrix is a business development and asset management 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.
