Newmark Group Expands Its Flexible Office Platform Into Europe

Newmark Group has expanded its presence in Europe and flexible office platforms by acquiring a majority stake of the start-up Space Management, or Deskeo, a French provider of flexible and serviced office space for enterprise clients.

Based in Paris, Deskeo has over 50 locations.

With the acquisition of the the assets of Knotel, a flexible office platform with locations throughout the US, the UK and Europe, Newmark CEO Barry Gosin called the purchase of Deskeo a “testament” to Newmark’s long-term bullishness on the future of flexible office and its commitment to providing a diverse range of client services on a global scale.”

He added Deskeo fits in with Newmark’s Global Corporate Services group’s capacity to offer a truly holistic view on international real estate markets and to offer clients the solutions they need for those markets.

“Particularly as companies contemplate their headquarters, satellite and remote office strategies, our ability to provide a full spectrum of solutions via a single platform, from strategy to workplace design to workforce enablement, is invaluable,” said the Newmark leader.

Newmark Group received permission for its flexible workspace platform Knotel out of bankruptcy from the US Bankruptcy Court for the District of Delaware in March.

  Gosin said Knotel’s adaptive model will play an important role in the Newmark’s future, as flexible workspace has been one of the fastest-growing areas of commercial real estate. “As a global commercial real estate leader, Newmark believes that our nimble integrated platform, combined with Knotel’s capabilities, will provide superior management and consulting services to corporations and owners around the world.”

In early February, Knotel and its US subsidiaries filed for bankruptcy relief under Chapter 11, with plans to be acquired by an affiliate of Newmark Group. It also planned to exit multiple locations in the US.

After struggling during the early days, flexible office space providers are now experiencing a surge in the Covid era, as companies experiment with their space needs and employees seek out work spaces closer to their homes. Not only are providers expanding, or in other cases, being acquired, but office landlords are also eyeing the model, namely through management agreements that allow flex space operators to share revenues with landlords. “Management agreements can also align landlords and operator incentives, creating a mutually beneficial partnership for all parties,” according to Ben Munn, managing director of flex space at JLL.