Flexible Office for the Evolving Workforce

Economic Downturns Provide Opportunity Entrepreneurship generally increases during recessions, spurring startup activity

Layoffs May Impact Demand

• After a hiring binge during the pandemic, tech companies have led layoff announcements since the start of 2022. • Additional cost cutting by companies is expected through 2023. Thus far, layoffs have been concentrated in the tech sector, with a share of 63% of total layoffs announced through April 2023. • Tech companies have historically been significant users of flexible office space. As the sector has diversified its user base, there is more ability by other user groups to absorb the tech slack. • As companies continue to decrease headcount, the flexible office sector may see increased demand for flexible office solutions as companies realign costs with business plans.

Global Layoffs 2022-2023

500

450

421

391

400

350

300

250

200

150

100

Total Layoffs (# Thousands)

50

0

2022

2023 YTD to April 30

Tech Other Sectors Total

Source: Layoffstracker.com