Detroit Flex Space Sector on the Rise
Detroit flex space sector on the rise. JLL senior research analyst Harrison West weighs in on if the trend is sustainable.
Detroit, 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 Detroit?
Detroit has 67,580,207 square feet of office inventory; of that, 392,477 square feet is comprised of flexible office space. With population rising and 3.5 percent of Detroit employees working in tech (a high user of flexible office space), the city is poised for an uptick in flexible leasing activity.
JLL Senior Research Analyst Harrison West elaborates: “Flexible office space is not just a trend, it’s becoming the future of work. While it’s generally thought of as space for startups and freelancers, more recently we are seeing large corporations joining in on the movement. The flexible office sector will continue to disrupt traditional lease formats as occupiers and landlords adapt.”
According to 2018 data, a Detroit coworking desk will run about $224 per month or $564 per month for a private office.
For more information on JLL’s Detroit 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