CBRE to open first Northeast co-working location in Philadelphia

The 50k sf Hana space opens at a Shorenstein-owned property

National /
Jan.January 18, 2020 12:00 PM
(Credit: iStock, Wikipedia)

(Credit: iStock, Wikipedia)

It’s time to share a conference room in the City of Brotherly Love.

CBRE’s first co-working location in the Northeast is set to open by the end of the year in Philadelphia.

The 50,000-square-foot location at Shorenstein Properties’ 1818 Market building is under CBRE’s Hana brand that the commercial giant launched last year, according to the Philadelphia Inquirer. CBRE has opened two Hana locations — in London and Dallas — and plans to open two others in Irvine, California and Arlington, Virginia.

Hana will offer most of the same services to users offered by co-working brands that have built the model, like Knotel and WeWork. Those companies typically lease space from a landlord at a monthly rate and then sublease that space out to its users at a premium.

Hana will not sublease — the landlord retains control of the space and Hana manage and brand it for a fee, giving the landlord a share of profits from subleasing.

That could be an attractive arrangement for landlords, particularly as demand grows for co-working-style spaces among traditional large office tenants. Hana CEO Andrew Kupiec said that arrangement “a more secure, overall more transparent model.”

CBRE’s venture into co-working hasn’t necessarily gone over well with its competitors. Knotel CEO Amol Sarva, whose firm just announced layoffs in New York, said last year that it would no longer work with CBRE. Bond Collective CEO Shlomo Silber called Hana a “conflict of interest” for the brokerage.

WeWork leases 1.3 million square feet in Philadelphia and is Hana’s biggest competition there.

Kupiec said that Hana wants to expand to other Shorenstein-owned buildings in the future. [Philadelphia Enquirer]


Related Articles

arrow_forward_ios
Two years after its IPO fail, WeWork will go public
Two years after its IPO fail, WeWork will go public
Two years after its IPO fail, WeWork will go public
250 Park Avenue and IWG CEO Mark Dixon (Google Maps, IWG)
IWG to open 58K sf co-working site on Park Ave
IWG to open 58K sf co-working site on Park Ave
Industrious hires new COO to lead IPO prep, international expansion
Industrious hires new COO to lead IPO prep, international expansion
Industrious hires new COO to lead IPO prep, international expansion
Eliot Brown and Maureen Farrell with Adam Neumann (iStock, Illustration by Kevin Rebong for The Real Deal)
“Too much money and no guardrails:” WeWork book authors dish on collapse
“Too much money and no guardrails:” WeWork book authors dish on collapse
WeWork CEO Sandeep Mathrani (WeWork, iStock)
WeWork reports membership growth, best sales since 2019
WeWork reports membership growth, best sales since 2019
Breather CEO Bryan Murphy and Industrious CEO Jamie Hodari
Industrious buys Breather’s listings platform
Industrious buys Breather’s listings platform
Amol Sarva and Cantor Fitzgerald CEO Howard Lutnick (Sarva via Sasha Maslov, Lutnick via Getty)
Amol Sarva regrets getting into bed with “consummate Wall Street type” Howard Lutnick
Amol Sarva regrets getting into bed with “consummate Wall Street type” Howard Lutnick
WeWork CEO Sandeep Mathrani (Mathrani/Wikipemedia, Getty)
WeWork lost $3B in 2020: report
WeWork lost $3B in 2020: report
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...