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.
Phoenix Coworking Market Expected To Double
Phoenix’s coworking footprint is expected to double in expansion this year according to JLL. Last year, coworking took up 9,000 square feet of office space, but the entrance of major operators such as WeWork and Industrious is giving room for the sector to flourish.
Different areas of Phoenix are seeing coworking growth, such as tech-friendly Tempe and Old Town.
JLL research has revealed that last year coworking accounted for two-thirds of office market occupancy gains. By 2030, it is expected that flexible office space will take up 30% of all office space in the nation.
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“We have fantastic population growth, quality of living, heavy labor pool that is well educated,” said Ryan Bartos, EVP at JLL. “Not only is the local economy growing with technology companies, but there is a net in-migration of tech companies from New York and other tier one markets, and that is validating that Phoenix is no longer a tier three market. We have quickly shot up the list.”
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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.