Despite a challenging December, REITs (Real Estate Investment Trusts) delivered a total return of 4.9% in 2024. The FTSE Nareit All Equity REITs Index faced headwinds in the last month of the year, declining 8.0%. However, certain sectors within the REIT industry performed well, with specialty REITs leading with a 35.9% return. The broader market, represented by the S&P 500, also experienced a decline in December, falling 6.5%.

Why are we talking about REITs in a coworking newsletter? More on that soon…

IWG‘s taken a play right out John Lewis’ playbook, releasing a holiday video that is a cute representation of how their holiday gift of flexibility can support their customers seeking that balance between work and life.

The BBC reports that NYC is set to become the first cit in the US to implement a London-like congestion charge. The day-time toll for cars will be $9 in Manhattan below 60th Street, and will begin being enforced on January 5th 2025.

Should this be implemented, and stay in force, it could change where people are willing to drive, park and work around the city – in turn changing where great coworking spaces should exist or be created. We’re expecting to see even more spaces pop up around the perimeter of the congestion zone, with recent moves from local Industrious, WeWork and regional newcomers like The Shop.

Bernie Mitchell chats with Sonya Whittam and Julie Firth on the Coworking Values Podcast, where they explore how coworking professionals can incorporate AI into marketing, streamline content creation, and adapt to ever-changing customer needs.

IWG’s third-quarter trading update for 2024 reveals notable growth in revenue and expansion across its global network, with a 52% increase in net center openings and a 46% rise in managed and franchised fee revenue. The Company-Owned & Leased segment also saw profitability gains, with margins up by 330 basis points. CEO Mark Dixon highlighted the company’s focus on strategic growth and debt reduction, supported by new credit facilities and bond issuance. IWG’s positive outlook includes plans for a continued expansion of its capital-light model and a transition to US GAAP accounting standards in 2025.

Overall, the most recent update from IWG paints a rosy picture for the firm, however they acknowledge continued delays in their Worka app, which has been positioned to be their on-demand offering. As the aggregator marketplace continues to become more crowded, is IWG really behind on development or are they waiting for an impending consolidation before making a play?