The partnership unlocks the unique power of Cherre's AI platform as well as Upflex's robust hybrid work and flex office data to help owners and operators optimize their office portfolios.
NEW YORK, NY / ACCESSWIRE / July 1, 2024 / Upflex, a leading global flex network and hybrid workspace management platform, has formed a partnership with Cherre, the leading real estate data management platform using artificial intelligence technology. The partnership will enable landlords and occupiers to enhance their flex space strategies and improve ROI. Landlords will now be able to access Upflex's global flex inventory data, scoring indices, and office space financial and operational data within the Cherre AI platform.
Office landlords are struggling. In 2024 alone, 112 million square feet of office space leases are set to expire, and an additional 105 million square feet could turn over in 20251 - a substantial near-term rollover risk of 217 million square feet. Rising vacancy rates in many markets are making the situation even more difficult.2
One mitigating factor for innovative landlords is that flex office is growing globally. Office tenants globally are looking to optimize their portfolios as workers make an unprecedented shift to hybrid work in an uncertain economic outlook, and in a spring CBRE survey, 62% office occupiers said that they are either executing or exploring new strategies with their office landlords.3
Accordingly, Colliers International data shows that coworking space is one of the few office resources growing in demand. JLL analysts predict 30% of all office space will be shared or flex by 2025.4 Other sources also suggest a resurgence in flexible workspace: Based on data analysis from over 50 countries, the 2024 Coworking Space Global Market Size Report predicts the coworking market to grow from $7.97 billion in 2020 to $13.03 billion by 2025.5
As landlords transition to flex to keep up with these fast-moving and influential trends,
Upflex will make rich and robust, global hybrid workspace data available through Cherre's AI-powered data platform.. Upflex and Cherre's offering is designed to help them step by step, with several valuable indices to enhance their flex space strategies:
The Flex Usage Index measures activity levels within specific areas, helping landlords identify high-demand zones.
The Flex Price Index tracks daily desk prices per area, adjusted for local cost of living, enabling competitive pricing.
The Flex Funding Pool Index provides insights into city and industry spending trends on flex spaces.
The Flex Potential Index identifies prime locations for new flex space developments based on various activity metrics.
These indices empower landlords to make data-driven decisions, attract diverse tenants, and optimize their portfolios.
Purchasing access to Upflex x Cherre data will also allow clients to integrate Upflex's usage, pricing, demand indices, and integrating funding pool information into Cherre, providing deeper insights into flex space trends.
"Data helps us see into the future and make the right choices," said Christophe Garnier, CEO of Upflex. "As the world of work continues to become flex and hybrid, landlords around the globe need to react fast in order to adapt to their new tenants' needs. The key to success for these landlords will be having the right data and the right insights to make sound business decisions. Partnering with Cherre is allowing us to unlock the power of our global data and its effects on improved building valuation and tenant satisfaction."
Upflex helps mid-size and enterprise companies around the globe streamline access to bookable, flex coworking and office space in more than 130 countries, and to make hybrid workplace management seamless across owned, leased and on-demand, third-party workspace.
"Cherre is excited to partner with Upflex," added Kevin Shtofman, Global Head of Innovation at Cherre. "With increased uncertainty in the office sector around return-to-work policies, tenants are looking for more flexible leasing arrangements. This in turn puts pressure on landlords to think creatively about space usage, which also affects the ability to underwrite building refinancings. Having integrated data helps both landlords and occupiers make decisions that can increase revenue, reduce risk, and provide a more composable target operating model."
The benefits to landlords go far beyond normal contract offerings. Flexible lease terms provide tenants with more options than a traditional lease, attracting high-quality tenants and better tenant retention and avoiding costly vacancies. Flexible lease terms can also help landlords maximize their rental income by opening up a wider range of tenants and high rents for certain lease agreements. A flexible and accommodating landlord has a competitive advantage and is likely to build a better reputation. Lastly, by offering flexible lease terms, landlords can avoid legal issues that may arise from strict and inflexible leasing agreements. Garnier says the Upflex team hopes to see these benefits boost landlords' business - as well as minimizing stress and adding ease to their lease processes.
"In today's evolving office landscape, landlords need precise data to stay ahead. Upflex, in partnership with Cherre, offers indices like the Flex Usage Index, Flex Price Index, Flex Funding Pool Index, and Flex Potential Index. These tools help landlords identify high-demand zones, set competitive prices, understand spending trends, and pinpoint prime development locations. By integrating these insights into Cherre's AI platform, landlords can make data-driven decisions, attract diverse tenants, and optimize their portfolios, ensuring long-term success in the real estate market " says Ginger Dhaliwal, Upflex's Co-Founder & CPO.
PR Contact: Ginger Dhaliwal, Co-Founder of Upflex, ginger@upflex.com
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1 https://commercialobserver.com/company/cred-iq/
2 https://www.commercialedge.com/blog/national-office-report/
3 https://www.cbre.com/insights/reports/spring-2023-us-office-occupier-sentiment-survey
4 https://www.us.jll.com/en/trends-and-insights/research/the-impact-of-covid19-on-flexible-space
5 https://www.thebusinessresearchcompany.com/report/coworking-space-global-market-report
View the original press release on accesswire.com
