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The end user is moving at a rapid pace towards a need for more variable space solutions. Varaible space allows for lowered capital intensity, streamlined process and an increase in end-user focused services that benefit both the business and personal needs of the occupants.
Coworking operators are filling the variable need unmet by fixed space in traditional office leases at an unprecedented rate. With 1.2 million people using coworking in the U.S., we see the fast expansion and emergence of national players like WeWork and Industrious among others growing their footprints to accommodate over 7 million new seats worldwide. Even with the ever-present news of another opening and lease signing, this product will occupy less than 10% of the average office market across the U.S.
If owners aren’t already thinking about adding more variable products, they need to start figuring out how to stay relevant as end-user’s demands continue to shift.