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.
CBRE’s coworking business gives landlords a say
As flexible workspaces continue to flourish, big brokers such as CBRE are elbowing through to get a piece of the pie by offering landlords a better deal that cut out the middlemen.
Landlords once embraced coworking firms as a way to rent out their spaces, but now owners are fearing that major tenants will develop loyalty to operators, which would subsequently reduce their control over who occupies the space.
CBRE has launched its own coworking sector called Hana, where it plans to offer flexible spaces and partner with landlords to maintain their relationships with tenants.
Its first deal will be with Dallas’s PwC Tower in partnership with the building’s owner, Metropolitan Life Insurance Company.
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The company will take over three floors of the 900,000 square foot building that is expected to open midyear. Under the Hana partnership, CBRE and the landlords will share the expense of designing, building and profiting from the space.
Andrew Kupiec, chief executive of Hana, said that the firm hopes to have multiple locations across 25 markets within three or four years.
WeWork has also started exploring the partnership structure in order to maintain a connection with its tenants.
“In the last three to four months, we’re pushing [the partnership structure] a lot more,” said Granit Gjonbalaj, WeWork’s chief real-estate development officer.
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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.