In Houston, flexible workspace demand has declined by 27% year-over-year, though it is still up 19% from pre-pandemic 2019. Rates have decreased by 7% year-over-year, all according to global workspace innovation firm The Instant Group.
The cost-per-desk in Houston for flexible workstations in 2022 was $421 per workstation per month; in 2021, it was $453 per workstation per month; in 2020, it was $440 per workstation per month; and in 2019, it was $438 per workstation per month.
Supply in the market has grown by 6% between 2021-22, mostly via hybrid workspaces, which represent 64% of the total supply in Houston. Coworking spaces make up just 6% of the market, while serviced offices comprise 30% of the market.
Small space requirements (1-2 desks) make up 68% of the total demand in the Houston market. Despite most demand coming through for smaller spaces, this demand has decreased throughout 2022, and mid-to-large size requirements have been experiencing more demand than earlier in the year.
“While demand from technology companies has been high as this sector moves into the market, the oil and gas industry continues to dominate Houston. The Energy Quadrant, bordering West Houston and Katy, specifically hosts oil and gas companies who are in search of smaller suites that encompass two to three private offices and a bullpen as touchdown space for employees working in the field, which may correlate with the strength of small space requirements,” said Brian Childers, Director, Digital Solutions, The Instant Group.
The included data is compiled via The Instant Group’s leading flexible workspace data platform, Instant Insight. Rate data is based on transacted rates, providing the most accurate view available within the industry, while demand data is based on demand coming through The Instant Group’s digital booking platform, Instant Offices. Percentage change is based on relative change.