Cleveland Flex Space Sector on the Rise
Cleveland flex space sector on the rise. JLL Vice President of Research Andrew Batson weighs in on if the trend is sustainable.
Cleveland, Feb. 14, 2019 – There is no denying it: coworking and other flexible real estate solutions are reshaping the U.S. office market. The flexible space sector has grown at a 23 percent average annual rate since 2010. In 2018 alone, it made up for nearly two-thirds of the country’s office market occupancy gains.
But how sustainable is this trend and what does it mean for Cleveland?
According to JLL Vice President of Research Andrew Batson: “We see continued growth in this sector in Cleveland. A number of new coworking locations have opened in Cleveland in recent months (Bounce, LaunchHouse and Beauty Shoppe) and several other operators have announced expansion plans in 2019, including Cube Workspace. These opportunities are ideal for organizations with uncertain growth projections or rapid expansion, and we’ve seen clients of varying sizes take advantage.
What does the data say?
- Cleveland has 27,173,852 square feet of office inventory; 252,107 square feet is comprised of flexible office space.
- 3.1 percent of Cleveland employees work in tech (a high user of flexible office space).
- 7.4 percent in rent growth over the last three years.
- Ceveland coworking desks run about $196 per month or $499 per month for a private office.
In total, we believe Cleveland is poised for an uptick in flexible leasing activity.
For more information on JLL’s Cleveland office, please visit www.us.jll.com/en/locations/midwest.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 90,000 as of December 31, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.