Miami’s office market continues to be dependent on coworking firms to fill their spaces, but some landlords are concerned that their absorption rate is becoming too much.
2018’s biggest real estate tech deals
2018 has proven to be a huge year for the real estate market and the tech industry, which is becoming richer by the second. Although the top real estate tech deals of the year may be familiar names, the impact they are placing on the market is astounding.
Coworking giant WeWork takes the first and second spot of the list with its $3 billion and $1 billion round of investments from Japanese-based company SoftBank, putting the startup at a $45 billion valuation. SoftBank is seeing some resistance from its investors, so the future of this powerful partnership is up in the air.
In third is construction startup Katerra, who raised $865 million from SoftBank in January, but has faced some setbacks in expansion.
OpenDoor, an online platform that buys and sells single-family homes, raised $725 million in which SoftBank contributed $400 million.
“We were planning to launch a city a month,” CEO Eric Wu said. “and now we’re planning two a month.”
Compass raised $400 million this year from, once again, SoftBank. Partnering with Qatar Investment Authority, the investors put Compass at a $4.4 million valuation.
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Sonder, an apartment hotel startup, raised $85 million in a Series C funding round led by Greenoaks Capital, which then they used towards leasing 169 apartments on 20 Broad Street in New York City.
Another coworking company that made the list was New York City-based Industrious, with $80 million from Fifth Wall Ventures and Riverwood Capital. The company avoids long-term leases with landlords in favor of hotel-style management agreements, where revenues and profits are split between the landlord and operator.
Procore, another construction startup on the list, raised $75 million. The company sells an app that tracks construction sites progress.
Women-only coworking space The Wing takes the 9th spot with $75 million led by Sequoia Capital.
Rounding out the list, New York-based coworking operator Knotel raised $70 million in April and $60 million in October led by Newmark Knight Frank and the Sapir Organization, the Wolfson Group, Moinian Group and Wainbridge Capital. The company is expanding at lightning speed with over 100 locations as of December.
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Gym-coworking hybrids have gained traction recently, allowing members to be productive at work while encouraging them to take care of their physical and mental health.
The 2019 Global Coworking Survey has revealed that there is to be 2.2 million coworking members by the end of this year and identified the state of the industry so far.
Office Depot has been testing out coworking spaces within three of their existing locations in an effort to expand its current services and drive traffic into stores.
Just ahead of its IPO, WeWork has signed four new Manhattan leases to open its “Headquarters by WeWork” offering dedicated to providing un-branded spaces for clients.
Despite the coworking industry seeming congested, operators are not concerned about the competition as each coworking space gears its services to a specific audience.
Flexibility in the workplace has become a common option for workers, but some firms are going further by becoming 100% remote so staff can work from wherever they please.
Coworking firms, such as WeWork and Knotel, have been rapidly expanding their footprint in New York’s Flatiron District as it becomes the city’s hub for shared offices.
British brand Established & Sons have introduced four new furniture designs that aim to create a more comfortable workplace, while also being functional to homes.
Condeco’s newest research paper found that 41% of employers offer remote working, thanks largely in part to major technological advancements that are sweeping workplaces.
Industrious is partnering up with national retail and mixed-use developer Seritage Growth Properties to brings its coworking spaces into five of the retailers locations.
Companies have accepted that wellness in the workplace should be prioritized, but the trendiness of it can overshadow what is most effective — starting from the basics.