Officebroker.com is rebranding as Officio to move away from the broker model and aid clients in finding long-term solutions, rather than completing short-term goals.
The ever-evolving flexible office market transforms once again
2019 is bound to see further changes in the real estate industry due to increased consolidation, institutional capital, and dealings with building owners.
With the massive amount of competition, some are estimating that 5 to 10 percent of businesses will either go out of business or be acquired at the end of the year.
Large players with the proper connections will have the opportunity to grab market shares as the economic future remains uncertain. Smaller niche businesses, such as coworking operators The Wing and Neuehouse, may find it hard to budge on consolidation agreements without deals that align with their personal brand.
Landlords are also expected to become more valued assets as they make the decision whether to buy, partner or build flexible spaces to bring in new tenants.
The Latest News
Delivered To Your Inbox
While any of these options have a chance of success, landlords would have the most trouble opening their own flexible space due to time, cost, and lack of product knowledge. The coworking sector is constantly evolving and now more than ever, tenants are seeking out to find a spot that fully meets their needs.
Additionally, we can expect to see coworking further merge with hospitality, retail and co-living services. Hospitality was the key player in services last year, and it is anticipated to continue playing a big role in the shared office sector.
Commodities including product and service enhancements are going to become essential for any player to survive in this highly competitive sector.
Latest on Daily Digest
JLL research revealed that Dallas-Fort Worth is ranked 12th out of the country’s top 15 coworking and flexible space markets, taking up 3 million square feet of space.
Office provider LABS has launched its 96,100 square foot flagship property LABS House in Bloomsbury, London that features coworking, offices, and full-service dining.
Cool office interiors are ideal at first glance, but looking into a company’s principles, such as gender equality and flexibility, will be the factors that retain talent.
Colliers International revealed the success of the office market last year due to high demand for coworking and tech firms, but predictions for 2019 are uncertain.
Shared office space providers as tenants have become the norm for many landlords and building owners, and now many REITs have adopted coworking as it continues to expand.
Brookfield Properties has teamed up with Convene to spruce up the 73,000 square foot Brookfield Place into a full-service events venue that accommodates up to 500 people.
Many coworking operators pride themselves on massive, rampant expansion, but some industry experts believe this growth could lead to failure and consolidation in 2019.