Short-term deals for spaces that can expand or shrink with the needs of companies are driving the growth of the flexible office market.
But that growth is also being driven by the new accounting standards that require long-term leases to be counted on balance sheets. That’s another reason major companies are housing their satellite offices in these temporary spaces all around the country.
With an eye on helping clients that are both tenants and building owners, Knotel has received an investment from Newmark Knight Frank. The flexible office provider that focuses on larger companies has been represented by Newmark in its leasing deals.
The financial terms were not disclosed.
Knotel currently operates more than 700,000 square feet of space in New York and San Francisco, with plans to expand to London. In 2017, it raised $25 million in a Series A financing.
In a statement, Amol Sarva, chief executive officer and co-founder of Knotel, explained, “Today’s companies are agile but their real estate is not.”