Elizabeth Steele, Esq. is a director at GRS Title. She can be reached at 804.486.9465 or via email at [email protected]
Everyone involved in the office sector of commercial real estate seems to be getting into the co-working space.
In May we reported on Hana, CBRE’s shared-office concept that is being operated by Trammell Crow Co. and CBRE Global Investors.
Now Hines, one of the country’s largest office owners, has launched Hines Squared, and other landlords, including Blackstone Group and Tishman Speyer, also have similar offerings.
All of these strategies are arguably a reaction to the growth of WeWork, the flexible-workspace giant, which is reportedly the largest tenant in Manhattan, London and Downtown Chicago. The timing might be good for its competitors. While WeWork, said to be valued at $42 billion, has grown significantly over the last few years, it is also losing money. Revenues in 2018 hit $1.8 billion, doubling from the previous year, but WeWork also lost $1.9 billion, putting into question its extreme growth strategy.
Hines Squared’s plan, which is a partnership with flexible-workspace operator Industrious, will start at two locations, 717 Texas, a 33-story tower in Houston, Hines’ headquarters city, and The Kearns Building, a 10-level asset, in Salt Lake City. The program is set to start in both buildings by the end of the year.
Industrious has partnerships with other landlords. It currently works with Blackstone, and mall owner Macerich is working with the firm to provide shared-offices in its shopping centers.
Eventually, Hines plans to bring the concept across its portfolio, and is currently targeting Atlanta, Boston, Denver, New York City, and the San Francisco and Washington, D.C., area for Hines Squared.
Hines operates 512 commercial real estate assets across the globe, totaling 223 million square feet.
Meanwhile, Hines spent $16 million on the renovation of Huntington Center, a 37-story office tower in Columbus, Ohio. The 36th floor of that asset is already akin to a shared office, with a bar and four conference rooms, which is open to all of the building’s tenants.
On commercial real estate’s industrial end the company recently announced plans to building an office complex in San Antonio, called Corner Ridge Crossing. It will be comprised of four buildings, totaling 576,800 square feet on four acres, and Hines expects its completion will be during next year’s second quarter. The industrial business park will span 45 acres and have tenant spaces ranging from 19,000 square feet to 252,000 square feet.
About GRS Group
GRS Group is a leading provider of commercial real estate (“CRE”) services worldwide. With offices across the United States, Europe, and affiliates around the globe, GRS Group provides local market knowledge with a global perspective for institutional real estate investors, occupiers and lenders worldwide. The GRS Group team has evaluated and advised on over $1 trillion in CRE transactions.
Through the company’s proprietary management process, Global Services Connection, GRS Group delivers an integrated suite of services including Financial Advisory, Transaction Management, Assessment and Title Insurance. We provide a single point of contact, capable of leveraging the GRS Group portfolio of companies and delivering customized solutions to assist our clients in achieving their investment goals.