• Sign In
  • Create an Account

Dizzy

  • Search
    • Brokers
    • Haves
    • Wants
    • Transactions
    • Marketplace Advertisers
    • Directory
  • Blog
    • tBL Blog
    • How To Blog With Us
    • Blog Contributors
  • Marketplace
  • Advertise
    • Advertise on tBL
    • Marketplace Program
    • Placement Opportunities
  • FAQ
    • tBL FAQs
    • Why theBrokerList?
    • In the News
    • BULK SUBMISSION
    • Buildout Syndication
    • Site Updates
    • Contact Us
    • Feedback

CBRE looks to challenge WeWork with new co-working business

This post originally appeared on Marketplace Advertiser, Connected Real Estate Magazine and is republished with permission. Find out how to syndicate your content with theBrokerList.

//?#
Share
Tweet
Share4
Pin
4 Shares

The co-working space business has rapidly become more crowded in recent years, but no less lucrative, which is perhaps why CBRE Group, the world’s largest commercial real estate services firm, has stepped into the industry, reports The Wall Street Journal. The company is looking to help landlords create their own flex-space companies rather than rely on intermediaries like WeWorkCBRE coworkspace

CBRE coworkspace

.

Flex spaces have become appealing to large companies because they can expand and contract their space quickly and do so at any time. More companies are moving towards this model and away from the standard 10 to 15-year leases that have existed in the office space industry for decades.

At first, landlords embraced co-working companies like WeWork as a way to rent space and attract startup businesses. Now, property owners have expressed concerns that major tenants will remain loyal to the companies they see as “middlemen.” Such loyalty could diminish the owner’s ability over who’s moving in and out of their building.

CBRE looks to take a different approach as it enters the co-working company space. It still plans to capitalize on offering big landlords the same services that companies like WeWork, Industrious and Knotel do, but CBRE wants to establish partnerships with landlords so they can still have a relationship with tenants.

Hana, CBRE’s new business, will have a workspace on three floors of the PwC Tower in Dallas in a venture with Metropolitan Life Insurance, Co., according to The Wall Street Journal. MetLife owns the tower in a 900,000 square foot complex and the facility is scheduled to open in the middle of this year. Under Hana’s partnership agreements, CBRE and landlords will share design and building expenses along with the profits from operating the space. The partners will also take part in negotiations with occupants.

“(Traditional deals between co-working space companies and landlords) have completely misaligned incentives,” Hana Chief Executive Andrew Kupiec told The Wall Street Journal. Kupiec also said he hopes there will be multiple Hana facilities in 25 markets within a “three to four-year period” as well as partnerships with landlords.

CBRE is not alone when it comes to partnering with landlords, however. WeWork itself has used landlord partnerships more often to help quell their fears of becoming detached from their tenants. WeWork’s Chief Real Estate Development Officer stated the company has been using that structure more during the last three to four months.

Subscribe to CRE Magazine

Subscribe to CRE Magazine

Meanwhile other commercial real estate companies are moving into the flex space industry, including JLL, which had made numerous workplace investments, including one in an app firm called HqO. JLL stated tenants leased more than 23.2 million square feet of space in co-working spaces in the United States alone.

Please follow and like us:
Share this article:
Feb 22, 2019Connected Real Estate Magazine
9 months ago Marketplace Partners#PropTech, Building Technology, commercial real estate tech trends, CRE Technology Changes, Wireless Technology81
Connected Real Estate Magazine

Connected Real Estate Magazine is a free subscription based publication that features the latest news and industry highlights about everything Wireless for the commercial real estate professional.

Alyssa Waters Joins SouthpaceBeyond Compliance: The Hidden Benefits of the New Lease Accounting Standards
  You Might Also Like  
 
Can 5G Fix America’s Broadband Problems?
 
AT&T Acts to Help Attract Youth into Volunteer Fire Service
 
Packet announces Edge Access Program to accelerate use cases

You must be logged in to post a comment. - Log in

 Advertisers 
 Categories 
  • Best Practices (1,011)
  • Brokerage Life & Leadership (228)
  • Business Trends (211)
  • Commercial Real Estate Is (6)
  • CRE Market Reports (227)
  • CRE Marketing (60)
  • CRE Promotions/Job Changes (16)
  • DNA of #CRE (4)
  • Done Deals (240)
  • Events & Conferences (86)
  • How To Use theBrokerList (91)
  • Marketplace Partners (1,911)
  • Member Blogs (14)
  • Press Releases (169)
  • Shout-Out (1)
  • Sponsored Blog Posts (3)
  • theBrokerList Podcast (1)
  • Top 10+ CRE Blogs (6)
  • Uncategorized (123)
 Company 


Contact Us
Technology Partner Program
Terms of Service
Privacy Policy

Copyright 2019 - theBrokerlist
 Connect 
Become a Member
Subscribe to theBrokerlist Daily
Subscribe to Property Announcements
Submit a Property Have
Submit a Property Want
Submit a Property Transaction
Submit a Blog Post or Feed
 Advertise 
Advertise with theBrokerList
Join the Marketplace
Custom Media Opportunities
Property Promotion Advertising [coming soon]

Heap | Mobile and Web Analytics
2019 © theBrokerList Blog