Major office space provider IWG has started adopting the franchisor model, pioneered by fast-food company McDonald’s, in its effort to edge further away from WeWork.
Canadian operator OneEleven launches offices in London
London’s office market has become riddled with coworking spaces, shared offices and more. The likes of US-based operators such as WeWork and Knotel having an international presence have left other companies with no room in the market— until now.
Toronto’s OneEleven believes it has a new take on helping London’s fast-growing businesses by providing “scale as a service.”
Tenants have access to turn-key services like HR, brand and marketing support, sales tools and more. With this, companies will be able to completely focus on operating their businesses.
Since 2013, OneEleven claims to have seen 70 companies raise over $500 million with a collective valuation of over $2 billion.
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“London offers incredible support for early-stage businesses as they start out, and once they reach Series A funding – but there simply isn’t enough of an infrastructure out there at the moment to help companies at that crucial in-between stage,” said Dean Hopkins, CEO of OneEleven.
Hopkins says that while many companies go through incubator programs, once their term is up, they are left to fend for themselves.
Since OneEleven does not take equity from members’ companies, the a la carte services do come at a price for businesses in the building.
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America’s malls are becoming more and more vacant, but coworking companies are taking advantage of these empty spaces to expand their services in a nonconventional way.
Flexible workspace provider Knotel has once again expanded its presence in central London, signing three new deals across the city totaling 40,000 square feet.
Office Evolution, the nation’s biggest coworking franchisor, will expand its footprint in Mount Pleasant as it continues to cater to small business owners in the area.
Although coworking spaces are often categorized as servicing major cities, tier II cities are having their moment as many startups continue to flood into these areas.
Amy Nelson, CEO of The Riveter, has made it her business to promote inclusivity of women in professional settings while also providing men tools to value gender equality.
A survey of 1,000 WeWork members found that, while some use the space out of convenience, others find the culture to have an effect on their professional identities.
While WeWork is expected to file for an IPO this year, its valuation and recently announced losses have left investors worried about the sustainability of the company.
IWG has started rolling out a franchise model, similar to that of McDonald’s, enlisting franchisees to take the reins in subleasing Regus and Spaces offices to companies.
Chicago-based Novel Coworking has purchased Denver’s 195,753 square foot, 17-story boutique office property Trinity Place in Uptown that is currently 65% leased.