Last month, during our Industry Game-Changers series, we learned that many flexible workspace leaders are predicting more industry consolidation next year.
While we don’t know who will be acquiring who next year, we do know some of the mergers and acquisitions that took place during 2016 (including some that we didn’t see coming). Here is quick rundown of acquisitions within the workspace-as-a-service industry in 2016.
Late October of this year, Regus bought Causeway House in Teddington, which comprises an entire office block. The acquisition gave Regus an extra 19,931 square feet of workspace in the United Kingdom.
Minneapolis-based COCO coworking bought Chicago-based Enerspace in May of this year. The deal indicates that we can expect more coworking consolidation next year, especially as more workspace brands aim to become regional players in their surrounding areas.
essensys, the tech company that’s among the leading IT and automation services suppliers to the flexible workspace industry acquired Hubcreate–another leading technology provider for the industry. The acquisition has helped accelerate and improve the technology created specifically for flexible workspaces and could be groundbreaking to creating a unified technology solution.
The British serviced workspace operator, Landmark Plc. bought Atelier London Ltd, the operating company of Garden Studios. Garden Studios is a multi-award-winning business center in Covent Garden that consistently operates over the 90% level. The purchase was another milestone to Landmark’s growing footprint in the UK.
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In Asia, FlySpaces–the ‘Airbnb’ for office spaces–bought Malaysian coworking marketplace, 8Spaces. The acquisition comes as another indicator of how much coworking and the flexible workspace industry are growing in Asia, and speaks particularly about the opportunity there is for workspace operators to find a dynamic market.
Premier Business Centers has significantly expanded its workspace portfolio this year, having added 6 new locations in various cities in the United States. In June, 2016, Premier bought executive suite provider, Brandywine Executive Center. The acquisition gave PBC an extra 14,533 sq ft of workspace in the Las Vegas area.
UK serviced workspace provider Bizspace acquired Design Works business centre in Gateshead. Bizspace acquired the three buildings comprising the business centre and refurbished the communal areas.
Who acquires or merges with whom in 2017 remains to be seen, and we look forward to keeping tabs on industry consolidation over the coming year.
Know of any other acquisition or merger? Let us know!