WeWork signs largest single grade A office leasing deal in Shanghai in 2017.
Co-working giant WeWork has agreed to lease an entire building of approximately 290,000 sqf (gross floor area) in the newly built China Overseas International Center in Huangpu District, Shanghai.
"The fact that a co-working operator signed on Shanghai's biggest single premium office this year is not surprising, considering the rising demand for flexible workspace in the region, and the appeal of these innovative office strategies to a growing number of large corporations," says Eddie Ng, Managing Director of Shanghai & East China, JLL.
"In the past year, our team has assisted co-working operators in leasing a total gross floor area of more than 753,000 sqf in the city, and we are confident that this trend will continue across Asia in the coming year, with the number of coworking members expected to grow to over 3.8 million in 2020 worldwide."
According to Anny Zhang, Head of Markets, Shanghai, JLL: "This deal is a perfect example of how organisations are turning to flexible workplace arrangements in an increasingly competitive market. Chinese markets alone account for five of the world's ten most expensive locations for premium office rents. Coupled with a talent crunch, companies have to adopt innovative workplace solutions to stay relevant in this disruptive environment."
According to JLL's Future of Work research, building owners and developers must now consider providing their tenants with an environment that supports collaboration, innovation and provides an engaging employee experience.
"Millennials' expectations, job automation and other developments are all changing business operations and workspace requirements," comments Lu Fengcun, General Manager of China Overseas Commercial Properties Company (Shanghai). "Going forward, we have to look beyond the traditional value of office buildings to deliver more comprehensive, agile and flexible services to our tenants."
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
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