Why should you lease to Co-Working spaces
If you are a Landlord and have fallow space lying unused, one of the best ways to utilize it is to lease it to the shared working spaces.
Usually, Landlords and property managers are conscious that, along with a strong return on investment, a shared-working space would add value to their property. Shared-working or collaborative workspaces pay more attention to their service's hospitality. The company needs to focus on providing customers with some different and unique offerings to attract and retain them in order to be successful in this sector.
It can always be good for the organization to provide customers with all kinds of benefits. People are willing to pay more for a good experience. Since the coworking operators run the show, it is the owners of the property who know that they can monetize the phenomenon and profit from it.
To various groups of professionals, coworking and joint offices have become important. From a one-man show run by businessmen to large firms investing in joint offices. In all directions and locations, coworking space has expanded. Refer to the coworking space financial model to provide more detailed information on coworking space support.
Creating a coworking area on a lease property There are certain techniques involved: namely lower costs because coworking operators take raw space into account and add their own designs.
The other approach includes directly entering the market. This means leasing the property directly from the coworking space to start-up companies. This has the advantage of making rooms for multiple parties for the tenants. The landlords should be able to track the consumption with this strategy in order to estimate and maximize the vacancy.
The landlord offers discounts on rent in some situations or either takes a portion of the company's earnings.
Renting to or choosing to enter directly the market and eliminating operators gives landlords the opportunity to meet the growing demand for flexible short-term leases and catch a market segment which would otherwise not suit under a conventional leases.
80% of the coworking operators have started renting their rooms, removing a huge capital cost needed for the purchase of an estate. This also helps the coworking manager avoid ownership of commercial property and the management of maintenance taxes and expenses.
It goes without saying, that property is an asset, considered when a coworking space is launched. Do this and meet with a broker experienced in the coworking business model and then negotiate an attractive long-term lease.
Joint ventures are another popular way to start a coworking environment. It means the variation of the share of income and management fees between the building owner and a coworker. The advantage of the landlord is to add an established builder into its portfolio with this relationship, without having to take steps outside of its core building skills. The advantage for the coworking space provider is that the costs of investment are therefore covered, which allows the operator to build a space that matches current demand on the markets and achieves the target objectives.
The increasing popularity of coworking spaces also means that owners need to make sure that their ownership is still profitable.