By Joshua Burd
Co-working space continues to grow in New Jersey, as more options come to market in a time of continued uncertainty about traditional office settings.
A recent report by CoworkingCafé, part of the Yardi network, found that the state has nearly 2.5 million square feet of shared or flexible workspace across 146 locations. Both metrics saw upward growth in the second quarter, the research platform found, while noting that co-working spaces in New Jersey averaged 16,828 square feet.
Nationally, the stock of co-working space reached 6,163 total locations by midyear, CoworkingCafé said. That was a 10 percent increase in the span of a quarter, up from 5,612 in March, with Manhattan, Los Angeles and Washington, D.C., leading the way among all markets.
New Jersey ranked 10th in the number of locations and 14th in total square footage of co-working space.
“Many companies still aren’t certain the number of employees who will be in their physical office space in the near or long term,” said Doug Ressler, business intelligence manager at Yardi Matrix. “That has led to firms doing smaller projects with startups, like pilot tests, instead of larger-scale purchases.”
Several large property owners in New Jersey such as Inspired by Somerset Development and Hugo Neu have added co-working spaces in recent years to large business centers such as Bell Works and Kearny Point, respectively. Smaller, independent operators have also emerged at office buildings throughout the state, as landlords consider nontraditional tenants to help fill large vacancies.
CoworkingCafé expected to see continued expansion of co-working space nationally amid the increase in remote and hybrid work.
Co-working demand grows in New Jersey, as users seek flexibility amid continued uncertainty
