Just two years ago, coworking was the fastest-growing sector in the D.C. office market, with providers like WeWork leasing large blocks of space and serving as a primary demand driver for the otherwise-stagnant market.
That dynamic has now flipped. Flexible workspace providers have given back hundreds of thousands of square feet of space during the pandemic, further weakening a D.C. office market in desperate need of new growth sectors.
“Coworking was really the only sector that was new and was driving positive growth for the city up until this year,” JLL Senior Research Director Michael Hartnett said. “None of these sectors that are D.C.’s homegrown sectors are in growth mode outside of a bit of tech. Coworking was really the only sector that was in growth mode this cycle, or at least the largest.”
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