- Cushman & Wakefield have entered an exclusive strategic partnership to provide clients with best-in-class office operations.
- Cushman & Wakefield also disclosed plans to invest up to $150 million in the upcoming WeWork and BowX Acquisition merger.
- CRE services companies are increasingly investing in flexible workspace companies as they realize flexible space solutions are a key component of the future of work.
WeWork and Cushman & Wakefield announced that they have entered an exclusive strategic partnership to market and grow WeWork’s management experience platform, as well as additional new jointly developed solutions.
According to the release, “the partnership is intended to provide clients with best-in-class office operations by combining WeWork’s proprietary platform of workplace experience management software and hospitality experience with Cushman & Wakefield’s industry-leading asset and facilities management services.”
In addition to the partnership announcement, Cushman & Wakefield disclosed that it is in discussions with WeWork and BowX Acquisition Corp to potentially invest up to $150 million in the upcoming WeWork and BowX Acquisition merger.
The merger would be part of a SPAC deal to take the coworking firm public.
CRE Services Firms Are Betting on the Flexible Space Industry
Should the investment come through, it would not be the first of its kind.
Earlier this year, CBRE acquired 35% ownership of flexible workspace brand Industrious following a $200 million investment, making it the largest shareholder of Industrious. As part of the deal, CBRE’s coworking arm, Hana, was merged into Industrious.
Similarly, Newmark received permission in March of this year from a Delaware bankruptcy court to acquire Knotel following the coworking company’s bankruptcy filing in January. Speaking about the acquisition, Newmark CEO Barry Gosin said in a statement that “flexible workspace has been one of the fastest-growing areas of commercial real estate, and we expect this adaptive model will play an important role in the future of our industry.”
Flexible Space Is a Key Component of Hybrid Work Models
Despite the fact that the Delta coronavirus variant has delayed return-to-office plans for companies worldwide, workers will eventually return to the office.
However, tenant expectations around the workplace have fundamentally changed, and as companies continue to announce hybrid work models moving forward, landlords are having to rethink the way they approach workspace to continue to attract companies and workers to their buildings.
Many large companies have announced plans to reduce their real estate footprint, arguing that they will not need as much space if workers will work remotely part-time.
Recent reports have also found that organizations will increasingly leverage flexible workspace solutions to provide near-home work environments for employees, rather than requiring workers to commute to city centers on a daily basis.
Employee surveys have continuously found that workers want increased flexibility and choice over how and where they work. By leveraging flexible workspace solutions as part of their corporate real estate strategy, companies can provide workers with that choice and flexibility, while also providing a seamless and attractive workplace experience.