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.
Colliers 2019 Asian property market outlook
Colliers International recently released its latest predictions for the 2019 Asian property market. Andrew Haskins, Colliers’ Executive Director of Research in Asia, outlined that the markets are set to slow, especially in China, Hong Kong and Singapore due to trade disputes.
“Chinese real GDP growth will slow towards 6.0% in 2019, while Hong Kong and Singapore will also see lower growth in 2019 than in 2018,” said Haskins. “Japan and South Korea look more stable, while growth in India has rebounded sharply.”
Office rents are expected to diverge after an expected supply jump in China. Singapore is anticipated to see an 8% growth, while Shenzhen will see a 4% fall.
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The logistics and industrial sectors are expected to continue growing thanks to e-commerce demand. Low vacancy is causing tenants to branch into Tier 2 cities in China.
While the retail market’s future remains uncertain due to rise in e-commerce, there is a new supply of retail space, but landlords need to put experience, digital connection and entertainment in order to succeed.
Investments totaled to $126 billion in 2017 and $122 billion and 2018. That number is expected to dip by 5% down to $117 billion in 2019 due to low activity in Hong Kong.
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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.