Flexible Office for the Evolving Workforce

Right-Sizing Continues North America shed space while European markets see growth slowing

Changes in Inventory

Q2 2020 - Q2 2021 Q2 2021 - Q2 2022

• North American markets continued to shed flexible office space in the past two years after the aggressive growth of the last decade. Course correction in over exposed markets accelerated in the period of Q2 2021 – Q2 2022. • Top European markets continued to see inventory growth in the last two years. The accelerated pace of growth, however, has slowed. • 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.

10%

8%

6%

4%

2%

0%

-2%

-4%

-6%

-8%

-10%

Europe*

North America

*Major cities only, including Paris, Berlin, Amsterdam, Stockholm and London

Source: Cushman & Wakefield Research