Detroit Flex Space Sector on the Rise

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.