Dr. Gleb Tsipursky – The Office Whisperer
Cat Johnson – Coworking Marketing Maven
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Andrea Pirrotti-Dranchak – Competitive Advantage
Jonathan Price – CRE & Flex Expert
Jeremy Fennema – Tech Innovation Alchemist
In recent months, landlords have started partnering up with flexible office operators to provide their own flexible workspace as the pandemic continues to impact the industry.
For instance, New York-based Industrious has signed management agreements with nearly 40 different office landlords, while Knotel’s management agreements make up around quarter of its total portfolio.
“Larger flex operators with a growing portfolio are the ones entertaining these types of agreements,” said Tashi Dorjee, flexible space solutions lead at JLL Australia and New Zealand. “They have the resources to propose a financially attractive business model, guide the design and build process, plus they have the capacity to train and manage on-site staff, and fill the space to generate revenue.”
These partnerships have become more appealing to landlords because, despite taking on the risk of outfitting these spaces, they also receive a bigger slice of revenue and decrease the overall risks of leasing their space out. Additionally, as many companies have shifted to operating with a distributed workforce, demand for flexible workspaces is expected to spike in the coming months.
This agreement might already sound familiar as it is the mainstay of many hotel companies, where chains do not own the properties, but simply operate the space and provide a portion of revenue to the landlord.
Entering such management agreements allows landlords to diversify their portfolio, while attracting new and existing tenants to their buildings.
