• The COVID-19 pandemic has forced some states to impose strict stay-at-home orders that are adversely affecting many industries. This is leading the U.S. economy into a recession that will result in very sharp declines in GDP for H1 2020 and in job losses, particularly in the retail, food & beverage and transportation sectors.

 

  • While some flexible office locations have temporarily closed, those that remain open are experiencing little to no use given shelter-in-place restrictions. Many operators are entering rent renegotiations with landlords to remain solvent. Several small flex operators have permanently closed.

 

  • Flexible office commitments1 totaled 1.0 million sq. ft. in Q1, remaining at a muted level for the second consecutive quarter. For the four quarters ending Q1 2020, commitments from flex operators were down by 32.1% year-over-year. For the first time since its founding, WeWork accounted for no commitments this quarter. Other providers postponed any expansion plans.