How Landlords Are Now Reviewing Their Interaction With Flexible Office Space Operators
NEW YORK – Current global trends have had their stamps on the way office spaces are viewed and used, having a tremendous impact on how landlords are now approaching interactions and business relationships with flexible office space operators.
Landlords have been leasing out spaces in their buildings to companies/firms, reaping profits from coworkers, renters, etc. However, the new trend of Covid-19 has taken them off comfort zones, leaving them on their toes. Business offers and profits that were in the past made on a silver platter are now tough to come by in a world that is changing how people approach work.
Consequently, there’s now a need for landlords to work closely with flexible office space users than ever before and establish a mutual understanding with them. There’s also the need for office operators to seek such concordance and mutual understanding seeing the need for flexible working options.
Jeff Johnson, the Sales Vice President of Industrious, a top co-working company headquartered in New York has recently reported a partnership and has arrived at management consensus with not less than 40 landlords.
Tashi Dorjee, flexible space solutions lead for Australia and New Zealand, JLL, has spoken in this regard, claiming that such agreements are most common with larger flex operators whose well-structured businesses allow for creative approaches to the use of office spaces.
In his words, he said, “Larger flex operators with a growing portfolio are the ones entertaining these types of agreements. They have the resources to propose a financially attractive business model, guide the design and build the process, the capacity to train and manage on-site staff, and fill the space to generate revenue.”
Addressing the issue of how much management agreements can benefit both landlords and tenants, Dorjee says: “The simplicity of flex leases help save tenants money, while the hospitality aspect helps attract talent. For property owners, they see the opportunity to tailor flexible space to their building, as well as shape the experience for the tenant they want to attract.
“Each deal is unique in the flexible space sector and may include a flat management fee attached to experiential and commercial objectives, such as net promoter scores, tenant surveys, and profit targets.
According to Dorjee, the aim of the landlord-tenant confluence is to create a long-lasting business relationship, all for the sake of mutual benefit as strategies and business interactions play out.