The spike in the supply of co-working space has pushed rents lower in the world’s largest cities, according to a report from Instant Group. The Global Flex Market 2019 report said average desk prices dropped 5% in the 18 largest cities last year. also said operators were having to move outside traditional central business districts to find new space. Prices fell most in Chicago, dropping by an average of 17%, followed by San Francisco (12%), Los Angeles (11%), Toronto (7%) and London (6%). New York fared better with prices falling on average by 4%. While increased supply is the main reason for the fall, operators moving beyond traditional business districts where rent paid and received is lower was also a factor. “Co-living spaces are becoming more popular as people realize that they can save money renting out their own space,” says Andrew Smith, co-founder of Instant Group, which provides data analytics services to companies including Air@@
The spike in the supply of co-working space has pushed rents lower in the world’s largest cities, according to a report from Instant Group. The Global Flex Market 2019 report said average desk prices dropped 5% in the 18 largest cities last year. Prices fell most in Chicago, dropping by an average of 17%, followed by San Francisco (12%), Los Angeles (11%), Toronto (7%) and London (6%). New York fared better with prices falling on average by 4%. While increased supply is the main reason for the fall, operators moving beyond traditional business districts where rent paid and received is lower was also a factor. “Co-living spaces are becoming more popular as people realize that they can save money renting out their own space,” says Andrew Smith, co-founder of Instant Group, which provides data analytics services to companies including Air@@