October 29, 2018
“If you had to sum up the third quarter market drivers in one word, it would have to be ‘coworking,’” said Transwestern’s Danny Mangru. “It’s become one of the fastest growing market segments we’ve seen in several years.”
Twenty percent of Q3’s seven million square feet of Manhattan office leasing came from WeWork, Knotel and other coworking firms, Transwestern reported. That’s up from 15% of the year-to-date total.
The proportion is even higher for large deals of 50,000 square feet or more. Q3 saw 21 deals greater than 50,000 square feet, of which coworking tenants represented eight, or more than one-third. Half of Q3’s eight deals greater than 100,000 square feet came from the coworking sector.
”Overall, leasing activity is doing fairly well,” said Mangru. “While this quarter’s seven million square feet leased is down from last quarter’s 10 million figure, YTD leasing is up 4% over last year’s total.”
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