As discussed in Part I, co-working is a positive trend in real estate that is taking over our offices and the headlines in industry news. Co-working models are becoming specialized by industry and are beginning to morph and blend in different ways, leading to even more iterations and opportunities for change. Organizations within the same industry, or who share similar business lines or services are exploring corporate co-working models, and discovering opportunities for mutual growth and success.
One financial services firm has taken a crack at a corporate co-working model and is acting as an incubator to its clients, who are now its tenants, as they try to expand presence in the New York City finance scene. In September of 2015, Citco opened its new Gateway Business Center at 350 Park Avenue. Citco is a well-known, worldwide group of independent financial service
providers. Citco created the Gateway Business model and opened their first location in Singapore to allow financial service groups access to the Citco infrastructure of services while trying to expand their presence in the local market. This type of corporate incubation model is new and has proven successful in Manhattan, with 90% of the center leased for February of 2016.
Ted Doukakos, the General Manager of Citco Gateway in Manhattan, was previously a GM at Regus. Ted manages the day-to-day operations and oversees providing amenities like compelling common spaces, a terrace overlooking the city for events, and even a wine fridge, all to engage his tenants and focus on their satisfaction. This model allows tenants to network with others in their industry and exchange ideas within their own office spaces. With layouts ranging from two-plus person suites to corner executive offices, and options for drop-in memberships to longer-term leases, Citco is using accommodations to prove that their focus is the tenant’s happiness and success.
To see Citco, a massive financial services firm, taking on a fresh co-working-type model, proves that the trend has hit every tier of business. They may not be a real estate firm, but in this case, they are using a trend to their advantage by taking on the role that a real estate firm would in a transaction.
Citco is just one example of how co-working is changing the dynamics of New York City real estate. Other groups, such as Capital One Bank, are exploring a consumer or services based co-working type that they believe will work for their clients. By opening Capital One Café’s in large cities, the bank allows customers to drop into a cozy environment where they can enjoy amenities like free Wi-Fi and discounted coffee with their deposits and withdrawals.
Co-working has proven it is a force to be reckoned with in real estate, and as new models emerge, it’s an exciting time to watch different organizations and industries adapt traditional ideas and make them work within new spaces and places.
Would you like to learn more about co-working and a strategy that will work for your environment? Visit our website at: http://www.jll.com/services/corporates/workplace-strategy
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