Low vacancy rates and a lack of new buildings under construction are threatening to hinder further expansion of the flexible office market in San Francisco Bay Area. While an increasing number of co-working companies are looking to enter the market for flexible office space in the area, the lack of supply has become the biggest obstacle to further expansion. A Tightening Office Market San Francisco coworking and flex office providers have increasingly leased more space since 2015, when 187K SF was leased, reaching a high of 922K SF in 2017, according to CBRE data. Last year 922,000 sq ft was leased for flexible working, with current trends likely to produce a similar amount in 2018, according to data from CBRE. The report also highlights that while there is still room for growth in the market, it will take time before more offices can be built due to limited land availability.
Low vacancy rates and a lack of new buildings under construction are threatening to hinder further expansion of the flexible office market in San Francisco Bay Area. While an increasing number of co-working companies are looking to enter the market for flexible office space in the area, the lack of supply has become the biggest obstacle to further expansion. Last year 922,000 sq ft was leased for flexible working, with current trends likely to produce a similar amount in 2018, according to data from CBRE. The report also highlights that while there is still room for growth in the market, it will take time before more offices can be built due to limited land availability.