Hana property management service pairs users with co-working space
After WeWork’s became the largest leaseholder in New York city with 5.3 million square feet, more players are entering the co-working office market. Now CBRE Group, Inc. has announced the launch of Hana, of new property management service which provides private office suites to corporate users.
“The way space is being used is evolving rapidly. Companies want the flexibility to adjust their occupancy to meet changing business needs and a better workplace experience to attract and retain top talent,” said Bob Sulentic, CBRE’s president and chief executive officer.
The move comes at a time when nearly 35% office space leases in the second half of this year came from co-working, and flex-space occupiers and institutional property investors are looking for ways to differentiate and enhance their assets.
The class A office space provider says it plans to leverage expertise from CBRE 360 a workplace experience app launched earlier this year that connects building occupants to high-end services and amenities.
“Hana is perfectly suited to meet these needs. Reflecting this, we have already generated significant interest from building owners who are looking for a trusted partner to help deliver flexible space offerings, and have a robust deal pipeline” Sulentic said.
Hana will help building owners to design and flexible space with the amenities, technology, and develop branding and culture that corporations require, the company says. The facilities will provide conference room and event space that can be rented on an hourly, daily or weekly basis, and a traditional co-working space offering.
However, in contrast to competitors like WeWork CBRE will not collect rent and instead co-invest with building owners and share the cost of built outs and manage facilities while taking a portion of the revenue.
While the number of freelance and independent workers using coworking spaces has declined, corporate occupiers or companies with more than 100 employees has increased by six-fold since 2010, according to Steve Weikal head of Industry Relations at the MIT Center for Real Estate.
“Corporate occupiers are starting to recognize advantages of co-working or using a third party provider and pushing the risk off and having flexibility,” said Steve Weikal at a recent CREtech’s Chicago event earlier this month.
CRBE plans to launch Hana in New York early next year and will compete with class A flex space providers Convene, Knotel and others.