Earlier this week, commercial real estate news Globe St. announced that WeWork has enlisted JLL to market and lease 38 coworking locations in seven cities across the U.S.
With landlords repositioning real estate strategies and companies reevaluating their need for physical space, demand for flexible office space is expected to deepen. A recent report by JLL, which surveyed 2,000 office workers, found that two-thirds want to work from different locations post-COVID. As a result of these trends, office owners are starting to recognize the value of flex space, leading to new partnerships with coworking operators that involve sharing revenues.
“This is more meaningful than a shifting of deckchairs,” says Ben Munn, managing director of flex space at JLL, in the report. “Companies and investors are taking a different view on flex space entirely and are willing to invest because they see this as a bigger proportion of the overall office market than it is currently.”
WeWork and JLL’s new arrangement will see JLL acting as “an extension of WeWork’s in-house sales team” in cities such as Atlanta, Boston, Dallas, Denver, New York City, Phoenix, and San Francisco.
The assignment will be led in New York and nationally by JLL’s Vice Chairman Howard Hersch, Executive Managing Director Clark Finney, and Executive Managing Director Aaron Ellison.
One year after the pandemic shuttered new leasing activity and drove leasing volume down by 92%, JLL predicts the flex market will return to growth in the second half of 2021. After facing an unprecedented downturn, the sector is well-poised for a comeback, with flexible office providers paving the way forward.