Coworking Benefits to the Asset Owner
with assets, amenities and hospitality
Tenants, corporations and small businesses are looking for productivity, not just another office building. Build healthy coworking communities through amenities, hospitality, events, services, experts and digital platforms.
Landlords have the opportunity to partner with experienced coworking operators to deliver on hospitality and community activation. By increasing productivity with tools like flexibility, reduced commutes and compelling work environments, landlords market their buildings offering a variety of amenities, workspace configurations and managed communities to keep users engaged.
Landlords are starting to bring the coworking experience to their buildings as an amenity and hiring coworking space operators to professionally manage them. There are big benefits to both sides and a big risk reduction in the financial model.
Premium Average Rent
Benefit of Filling Current Vacancies
An increasing number of office landlords are offering flexible options to tenants who desire temporary space or a lease commitment of less than three years.
Space in co-working facilities is “move-in-ready” and includes WiFi; a full-range of amenities; and the flexibility to rent space by the hour, day, month or year. That convenience, however, comes at a 181 percent premium.
Offer space with flexible terms to fill temporary gaps in long-term tenancy. Even in core urban markets with tight vacancy rates, companies and small businesses who are renewing leases are shedding excess space and right-sizing offices to align with current workplace trends.
Provide flexible desks or space to incubate early-stage startups and entreprenuers as they grow, gradutaing into businesses who will occupy space as prime tenants.
Added Services and Revenue Streams
Workplace as a Service
Create a “workplace as a service” model, focusing efforts on value added services and revenue streams that enhance member experiences, which give tenents an edge over a home office, the coffee shop, or even a corporate office. It’s not just the profitability piece that’s driving new types of coworking spaces.
Services and conveniences are truly what drive people to cowork. Even more forward-thinking models with many all-in-one-location-services around the coworking nucleus such as a retail coffee shop, tap room, café, health club, spa, residences, dry cleaning, and even more retail options gives members an immersive experience.
As a major benefit, the landlord/operator is not totally dependent on membership dues to pay expenses.
Mix it Up
Hedge Against Declining
Real Estate Markets
Diversify your CRE portfolio by offering both shared and traditional space. The demand for flexible office space is on the rise as lifestyle preferences continue to evolve toward more immersive, community-focused environments.
Attract New Tenants And Retain Existing Ones
Happy, productive coworking communities attract more progressive companies, accommodate potentially high-growth startups, and fill empty spaces before presenting them to potential long-term tenants.
Increase and Add Value
of the Real Estate
Shared space increases the value per square foot and adds an amenity to your building. Investments continue to flow into the coworking sector, indicating a bullish outlook for the continued growth of the consumerization of workspace.