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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.

ABOUT Aayat Ali
Aayat Ali

Aayat is an editor for the Daily Digest based out of Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces. Feel free to reach out to her at [email protected] View all posts by Aayat Ali

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