Novel Coworking is different from traditional operators who sign long-term leases, then sublet their workspace to companies on short-term leases. Instead, Novel owns all of its buildings which allows it to stay afloat during economic downturns such as this one.
Now, the company has created a management platform that aims to help landlords who have a struggling coworking company within their space. Novel comes in, looks into the situation, and helps renegotiate traditional leases into a more financially stable agreement. Once the operator and building owners create a partnership agreement, Novel reviews how the coworking company is operating and identifies areas where they could be saving money.
“With more traditional arrangements, a coworking company pays building owners a fixed amount, and the owners see none of the benefits,” said Chris Klare, Director of Capital at Novel. “With our solution, owners pay us a fixed percentage of revenue collected and then they get to keep all of the upside.”
Novel’s in-house sales team also helps the struggling coworking firm to create a business plan that emphasizes membership satisfaction, as well as growing occupancy and revenue.
“Our first priority has always been the client,” said Klare. “These people deserve better than what they’ve been given, so when we come into these situations we treat them like Novel coworking clients right away. We evaluate the amenities, we make sure everyone has a productive place to work, and we do all this while helping to make the building owners more profitable.”