CBRE gives up on Hana and folds it into an investment in Industrious. Meaning? Start with 👇
In my #SpaceAsAService presentation this is the first of 8 factors determining success. Based on the joke about the difference between the chicken & pig in a bacon & egg sandwich. The chicken is involved but the pig is committed.
Neither is wrong but to succeed in #SpaceAsAService you need to be fully committed. It’s simply too hard to just be involved. If it’s not central to your core business then doing it yourself is a mistake.
For a brokerage like CBRE it was never going to be core. So they could throw money at it, but without a real defining commitment to the value proposition was it ever going to succeed?
Their core business needs to have ‘skin in the game’ of the flex market (if only so they understand the dynamics) but most likely doing so via the excellent Industrious is a much better option.
Where that leaves other real estate services companies is interesting. Has the Hana experience 100% invalidated doing it themselves? Probably. So what should they do?
Last year I criticised another firm partnering with an operator. On the basis that they should be buying at least a decent stake instead. Because if they execute well the inevitability of taking a stake will follow, but the price be much higher....
CBRE have, I think, validated that argument. So expect you know who to buy a stake in you also know who, soon. Maybe pandemic has been a short term blessing but by next year, they’ll be coughing up.
It gets more interesting for landlords. The pandemic is a near term bug for the flex industry but a massive feature long term, as demand will massively increase. So every landlord, even every major multi let building, will need to offer flex options.
To date some landlords are building their own offerings. But are these efforts even nearly enough? Chicken or Pig? I think the former. Little ‘skin in the game’ even vis a vis demand pre pandemic. Not nearly enough for post pandemic demand.
So. What to do now? Current plans are too little. Is internal commitment as well? This stuff is becoming core, or at least critical. So ‘Pig’ behaviour is needed. Are they up for that? CBRE said they were with Hana. But they weren’t. Is that an inevitability given mkt structure?
It’s make your mind up time. Landlords need to 10X commitment to doing flex themselves, or immediately back out and start Plan B. Which is to pick a range of flex partners (to service different audiences), align incentives, and buy in enough to maintain alignment.

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More from @antonyslumbers

2 Jan
Not a good article but this endlessly repeated line of ‘Covid is accelerating trends’ is, I think, completely wrong. It feels like that but most of these trends were happening so slowly and were niche, not mainstream.
Most prominently remote working is not a trend that has been simply accelerated. It was 5% or so in the U.K. before and largely based around working from home 1 day a week. An acceleration of that trend would not have got us where we are going.
More working from home 1 day a week is like a sustaining innovation. Just updating the world as it is. The underlying way we worked stays the same. Office centric, synchronous, hierarchical and digitally limited.
Read 6 tweets
2 Jan
👇 Rather baffled why this is not made more of in CRE. Someone actually said to me ‘air quality will become less of a ‘thing’ now we have vaccines coming’. NO NO NO: Do not sign any lease without knowing what they are doing to ensure excellent IAQ. Top issue.
BTW that comment was from an investor. I think many have assets where the ability to have excellent IAQ is low or non existent. So hoping we all ignore it, like pre Covid. But must not happen. Sell these assets before the market clicks, or cough up and upgrade your building.
Also explains the paradox of building new offices even as demand falls away. Done well they can be dramatically better buildings. Done well - very many underperform their theoretical quality.
Read 5 tweets
1 Jan
👇 Yes. All change, all change. Especially in U.K. Whatever the opposite of ‘levelling up’ is, is about to start. Big winners & losers. The digital economy set to thrive as analogue world grinds to a red tape induced standstill. Brexiters won, but will now lose.
“the digitally enabled ones were ready for this moment”.…
And this, from July 2016 -…
Read 5 tweets
31 Dec 20
Interesting academic report on why working from home will stick post pandemic.… Image
Who wants to work from home (or remotely) and for how long. 64% 2 or more days a week. Image
But employers are not so keen. Correlates with earnings. The more you earn the more your employer will allow you to work remotely. / Does that suggest employers need to update their thinking? Image
Read 9 tweets
5 Sep 20
The lack of innovation about innovation is disheartening. Just read yet another article mansplaining (these articles always seem to be written by men) that innovation only happens ....
.... in cities (of more than 1 million people), in the office, face to face. Innovation cannot happen digitally, humans cannot understand nuance online, we are incapable of managing our online activities to avoid ‘Zoom fatigue’, and bonding & mentoring is impossible remotely.
In other words, we humans are only capable of doing what we have done before. We need to accept that there is only one way of working, that that has been codified & determined by our elders and betters, and we should do what we are told.
Read 15 tweets
27 Aug 20
Seems clear that most office workers will not be returning to the office five days a week.
Some (5-10%) might, and the same % might never return. But consensus developing that 1/2/3/4 days a week in the office is enough, probably with the average being 2/3 days.
Depends on job requirements - some consist of more collaborative work than others. @gensler last year had the average mix as 55/45% collaborative/individual focussed.
Read 14 tweets

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