What was The Buzz in January?
Our monthly roundup of real estate industry news.
Here are a few of the stories that caught our attention in January. From the acquisition of Industrious, Deskpass & Hubble and the green light for a huge new skyscraper to an increased take up in the UK’s regional office market, it’s all systems go in the commercial real estate industry.
Yardi acquires Deskpass & Hubble to expand flexible workspace offering
Yardi® has announced the acquisition of Deskpass, a popular North American coworking booking platform, and Hubble, the U.K.’s largest workspace marketplace, expanding its trusted real estate technology suite.
As work habits continue to evolve, many are looking for spaces that fit their unique needs — whether it’s a desk or meeting room for the day or a bookable office in every corner of the globe, and everything in between. By bringing these two major platforms on board, Yardi is making it easier for freelancers, small businesses, and corporate occupiers to find and book flexible spaces while helping workspace providers get noticed and simplify their operations.
“We are excited to build a global infrastructure to connect office users with space from the best office owners and coworking operators,” said Robert Teel, president of Yardi Global Solutions. “The Deskpass and Hubble teams bring a wealth of customer and industry knowledge about flexible marketplaces to help us service this evolving customer need.”
CBRE to takes full ownership of Industrious for $400M
CBRE announced a definitive agreement to acquire Industrious, a leading provider of flexible workplace solutions. In conjunction with the acquisition, CBRE will create a new business segment called Building Operations & Experience (BOE). This new segment will unify building operations, workplace experience and property management, positioning CBRE to deliver scalable, future-ready solutions for offices, data centres, warehouses and other facilities.
Since late 2020, CBRE has invested in Industrious through an approximately 40% equity interest and a $100 million convertible note. The company will acquire the remaining equity stake for approximately $400 million, reflecting an implied enterprise valuation of approximately $800 million. The transaction is expected to be immediately accretive to 2025 core EBITDA and free cash flow. The acquisition underscores CBRE’s strong conviction about Industrious’ expertise in workplace experience and operations and the long-term growth prospects for the flexible workplace market.
Foster + Partners signs 48,000 sq ft lease at Battersea’s 50 Electric Boulevard
Foster + Partners has leased 48,000 sq ft of office space at 50 Electric Boulevard, a new sustainable workspace at Battersea Power Station designed by the world-renowned architectural practice. The global studio for sustainable architecture, urbanism, engineering and design, is the latest international brand to choose 50 Electric Boulevard for its new offices, joining a community of more than 3,500 office workers across over 60 companies now based at Battersea Power Station.
Foster + Partners will occupy three floors of 50 Electric Boulevard, providing space to support its continued global growth, whilst keeping the practice’s existing London campus in Battersea, where it has been based since 1990.
In addition to designing and now taking space within 50 Electric Boulevard, Foster + Partners has played a critical long-term role in the regeneration of Battersea Power Station. The practice designed Battersea Roof Gardens, which forms one half of Electric Boulevard, the neighbourhood’s pedestrianised high street, and designed the interiors for Apple’s 500,000 sq ft UK headquarters inside the iconic Power Station, as well as the new concept Apple Battersea store inside Turbine Hall A.
Brookfield gets green light for 1m sq ft 54-storey Bishopsgate office tower
A huge new skyscraper next to Liverpool Street station has been given the go ahead by the City of London Corporation. The 54 storey tower at 99 Bishopsgate was approved by the Corporation’s Planning Applications Sub-Committee.
The green light for the scheme from developers Brookfield means defeat for groups that opposed it including the Government’s heritage body, which has warned of the impact on historic assets such St Paul’s Cathedral.
The building will deliver almost 100,000 sq m of office and other commercial space making it one of the biggest developments of its kind in the Square Mile. It will provide more than 8% of the proposed City Plan target for new floorspace by 2040. It will also generate around 7,500 jobs.
As well as offices there building will include a visitor destination, with a new six storey pavilion building space, planned to be occupied by ‘Intermission Youth’, a charitable company “that uses Shakespeare to empower underrepresented voices and foster inclusivity in the arts.”
UK’s regional office markets notch up highest take-up since 2019, says Savills
The take-up figures, which were 15% above the five year average, was supported by strong momentum through the year with Q4 take-up being 38% higher than the same period last year.
All Big 6 office markets (Bristol +5%, Birmingham +21%, Edinburgh +70%, Glasgow +42%, Manchester +29% and Leeds +0.1%) recorded take-up growth in 2024. Edinburgh recorded the largest year on year growth with take-up 70% higher than 2023, driven by the Q4 being the largest quarter of take-up on record, predominantly due to Lloyds Bank completing a 282k sq ft letting at Port Hamilton in Q4, also the largest deal of the year.
James Evans, head of national office agency at Savills, says:“A 26% increase in take-up year on year is an impressive performance for the regional office market, bringing total take-up to its highest point since 2019. Despite these encouraging numbers, there remains some caution as businesses digest the impact of the Autumn Budget. However, dwindling supply of high quality office assets means that rental inflation and competition for space is starting to bite.”
