Coworking giants, such as WeWork and IWG’s Spaces, have started to expand their services and lease high profile properties in Auckland’s rapidly growing office market.
What to expect from serviced offices in 2019
Long office leases are likely to be less favorable due to the International Financial Reporting Standard, which causes UK businesses to add £200 billion of liabilities to their balance sheets.
Last year, Savills reported a 150% increase in serviced offices in 2017 and JLL predicted that flexible work spaces would grow by 30% annually.
Still, the Office for National Statistics revealed that company investments fell by 0.7% which suggests that occupiers are being more cautious due to Brexit concerns.
There will be a wider variety of operators in the market, from major firms to smaller companies servicing local areas. It is also expected to see newer firms enter the market, but they will need to differentiate themselves from the competition in order to be successful.
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Sources have revealed that CBRE, the world’s largest commercial real estate services firm, is looking at 3 World Trade Center to house its new coworking brand Hana.
Hoxton Hotel is branching out from traditional hospitality services with the launch of its coworking brand Working From_ at its London Southwark and Chicago locations.
Speaking at the 2019 MIPIM conference, IWG’s CEO Mark Dixon said that companies of various sizes should offer some form of agility in order to attract and retain talent.
As the coworking space sector continues to evolve and grow, experts believe that there will be a 25% growth of these offices within retail properties through 2023.
Ryan Simonetti, CEO of Convene, believes that the firm sets itself apart from the competition by going beyond serviced workspaces and offering more hospitable amenities.
Building Industry Gathering Oakland has opened its 3,650 square foot, one-of-a-kind coworking space geared towards small minority and women-owned businesses in the area.
Novel Coworking’s newest Chicago location will include workspaces, such as office suites, private offices, and coworking space, to accommodate various-sized companies.
As the gig economy continues to become more prominent amongst younger professionals, the demand for flexible coworking spaces from this generation rampantly grows.
Hospitality company Accor is working to expand its coworking services to 1,200 of its hospitality locations, which could make it the largest coworking provider in Europe.
Brexit has left the London office market in development limbo, but thanks to the surprising resilience of the market, builders are moving steadily forward with projects.