Given recent headlines, CBRE has adjusted its U.S. flexible office space inventory growth forecast to 23% in 2019 and 13% in 2020. CBRE projects flex office inventory to total approximately 87 million sq. ft. by year-end 2020, as flex-space providers with sound operating models increase their offerings in strategic markets.
Engagement models between landlords, occupiers and flex operators will continue to evolve in 2020, as both landlords and occupiers will likely scrutinize the risk profile of operators more closely. Partnership or service agreements between landlords and flex operators will be a prime driver of flex space expansion in 2020, enabling landlords to have more insight into and control over the flex operations in their buildings.
CBRE expects occupier demand for flex space to remain strong in 2020 as companies continue to deal with headcount uncertainty and decentralized workforces. Speed, flexibility and low capital outlay will remain at the heart of occupier demand for flex space in 2020 and beyond.