Flexible Office for the Evolving Workforce

Increased Efficiency of Office Space U.S. average square footage of Class A leases signed by year

Lease Sizes Down 16% from Historical Avg. in 2022

20,000

• Occupiers have been looking for ways to become more efficient during the pandemic to optimize costs and adapt to employees’ more flexible work schedules. Leases signed in 2022 were on average 16% smaller than the historical norm. • Shrinking footprints do have challenges, however. For example, with peak office usage occurring Tuesday through Thursday, office space can become quite tight on those days. • This can create demand for flexible space on peak days. Additionally, on demand meeting space provided by landlords and/or flexible office providers can be an asset for occupiers at a reduced overall cost.

18,000

16,000

Square Feet

14,000

-16%

12,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Avg Lease Size (SF)

Historical Avg.

Source: Cushman & Wakefield Research