Officebroker.com is rebranding as Officio to move away from the broker model and aid clients in finding long-term solutions, rather than completing short-term goals.
Can property owners win the coworking game?
Property owners are realizing that coworking spaces are key to attracting new tenants. Some are even going as far as to open their own flexible workspaces, allowing them to retain all profits and control over the space. While it is difficult to start a new office in an already saturated market, there are many ways for them to get started.
Traditional leases are the standard model for many operators. Some owners may even invest into existing operators to get their foot in the door. Just last year, multinational private equity and financial services firm Blackstone bought a stake in The Office Group.
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Some property owners are also partnering with operators to form management agreements. This allows property owners to outsource their marketing, thus generating more revenue from the operator. It also reduces the risk of a workplace investment or running their own office.
Landlords can also consider entering a joint venture management agreement, but should be clear about the partner’s income expectations, as well as their own.
The owners that end up on top will be ones who choose their partners wisely.
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JLL research revealed that Dallas-Fort Worth is ranked 12th out of the country’s top 15 coworking and flexible space markets, taking up 3 million square feet of space.
Office provider LABS has launched its 96,100 square foot flagship property LABS House in Bloomsbury, London that features coworking, offices, and full-service dining.
Cool office interiors are ideal at first glance, but looking into a company’s principles, such as gender equality and flexibility, will be the factors that retain talent.
Colliers International revealed the success of the office market last year due to high demand for coworking and tech firms, but predictions for 2019 are uncertain.
Shared office space providers as tenants have become the norm for many landlords and building owners, and now many REITs have adopted coworking as it continues to expand.
Brookfield Properties has teamed up with Convene to spruce up the 73,000 square foot Brookfield Place into a full-service events venue that accommodates up to 500 people.
Many coworking operators pride themselves on massive, rampant expansion, but some industry experts believe this growth could lead to failure and consolidation in 2019.