Conal O’Hara, chief operating officer for high-end coworking company The Argyll Club, said the industry may not be ready for the growing demand they will experience over the next few months.
Traditional offices will not be sought after as companies allow employees to continue working remotely or look into flexible workspaces that offer short-term leases.
Several real estate owners maintain outdated business models that involve signing long-term leases to tenants, but this model has been proven to be risky, particularly during economic downturns, and landlords could have better luck looking into partnership deals.
“Many landlords were already looking at the sector and the Covid-19 pandemic makes that a necessity,” said O’Hara. “But landlords have particular skillsets and we strongly believe they will benefit from a partnership with an experienced operator who works with tenants on a daily basis.”
Partnership deals allow landlords to share risk with operators, gain experience about the coworking industry and what services tenants may expect, while diversifying their portfolio. Typically, the coworking operator will run the space on behalf of the landlord, receive a management fee and both parties agree on a split of the property.