Knotel To Bring 6M Square Feet of Hub & Spoke Workspace To The Suburbs
October 29, 2020, New York, NY - Knotel, one of the world’s leading flexible workspace platforms, announced today an initiative to bring nearly 6 million square feet of premium white box office space online in key suburban markets, capitalizing on a growing trend in corporate real estate circles to decentralize real estate footprints into more safe, dynamic and drivable workspaces.
Knotel will be responsible for the project management, tenant acquisition, furniture sourcing and space management of the new portfolio, which will feature a diverse selection of 50 single-tenant locations that were formerly Lord and Taylor stores. With the new space, Knotel customers can now create touchdown hubs with a complete employee experience, including security and IT, branding, health and safety, and privacy for their pockets of employees in each region.
“This new initiative will allow us to capitalize on the booming demand among global enterprises for more suburban, flexible and purpose-driven workspace,” said Knotel CEO Amol Sarva. The properties will be ready-to-work in early 2021 and are drivable for workforces from the suburbs around major US office cities, including New York, Boston, Chicago, Washington D.C., Detroit, Philadelphia, Los Angeles and more. The transaction has the potential to bring Knotel’s managed space portfolio up to nearly 60%.
“The verdict is in,” said Sarva. “More than ever, employees want options and flexibility when it comes to how, where and when they work. Companies no longer have to be relegated to binary decisions about having everybody at a massive HQ or working from home.”
The announcement comes in the midst of a massive transformation in the global office market as millions continue working from home and some of the biggest U.S. cities have seen a mass exodus of employees relocating to suburban communities. Business and real estate leaders across the corporate spectrum have almost universally embraced a more hybrid and decentralized approach to work, opting to give their employees more choice and flexibility around how and where they work.
ServiceNow CEO Bill McDermott acknowledged the tech giant was going to embrace a “hybrid” approach to reopening its offices by giving its 11,000 employees increased flexibility. Deloitte, KPMG and the Bank of Montreal have reported considering hub-and-spoke models, opting to forego leasing massive, monolithic HQs in favor of smaller pieces of real estate spread across a more diverse geography. These “drive-to” destinations will be fully tailored to enterprise teams and more convenient for employees who previously used to commute daily to city centers.
Knotel is the world’s leading flexible workspace provider, catering to established and growing companies, giving them the freedom to focus on their business, culture and people. With over 4 million square feet across 200+ locations in New York, San Francisco, Los Angeles, Toronto, London, Berlin, Paris and São Paulo, Knotel is transforming commercial real estate and moving companies forward.
Knotel was founded in 2016 to give businesses the flexibility and speed to scale on their own terms. All Knotel spaces are tailored to the needs of each individual company by an in-house team of architects, interior designers, and workplace strategists. For more information, please visit www.knotel.com.