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.
JLL credits coworking and the tech sector for its growth
Christian Ulbrich, CEO of JLL, said his firm has focused on coworking and real estate technology investments with $4.9 billion in revenue, a 13% increase year over year.
The boost was driven by a 25% year over year increase in global leasing, with a 34% increase in the Americas alone.
“I can say for us that the flex-based [co-working] companies … have become an important client base for us, and so quite a significant proportion of that additional growth is coming from them,” Ulbrich said.
JLL predicts that coworking spaces will take up 30% of corporate portfolios by 2030.
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The firm capitalized on both coworking and the growing real estate tech sector when it announced its venture capital wing, JLL Spark.
Since June, JLL Spark lined up seed or series-A investments into 10 different startups after it announced it would dedicate $100 million in order to stay ahead of the tech sector curb.
JLL is valued at $6.67 billion, only second to CBRE’s $15.9 billion market cap.
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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.
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