2022 Flex Office Changing Workplace

Inventory Right-Sizing Occurring Flexible Office Inventory Continued Growth in H1 2020, but Space was Shed Over the Next Year

Changes in Inventory • The second half of the last decade saw aggressive growth in the flexible office sector and led to some over-extended expansion and unsustainable business models. Over-exposure in specific markets was a particular issue. • Since the beginning of the pandemic, some operators have been creative about shoring up their businesses. Strategies include selling off assets, focusing on core business services, walking away from underperforming locations, and/or renegotiating leases to shared-risk arrangements—i.e., profit sharing leases or management agreements. • APAC was an outlier, with growth driven by aggressive expansion in India, Australia and South Korea.

Q2 2020 - Q2 2021

-10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10%

*Off-chart: APAC coworking inventory increased by 88% between mid-2020 and mid-2021.

Asia Pacific*

Greater China

Europe

North America

Source: Cushman & Wakefield Research