Looking for ways to create a better tenant experience and boost their bottom lines, flexible office operators are generating new revenue streams by offering additional on-site services and establishing new business lines.
LiquidSpace, a digital marketplace-a sort of an Airbnb of flexible office space that partners with co-working operators, serviced office operators, office landlords, and office tenants with sublet space, provides flexible office options to its clients.
“Landlords are using our platform and services to create ‘move-in ready’ office space and enter the flexible office economy,” he continues, explaining that many landlords are establishing their own flexible office brands to compete with co-working operators.
The SWIG Company, an institutional office owner with assets in New York, Los Angeles and San Francisco, has established its own flexible office brand, as have other leading owners, including Washington REIT, Tishman Speyer and Boston Properties, Gilbreath notes.
Major office owners are entering the flexible office economy in response to growing customer demand, he says, noting that successful co-working operators are achieving significant rent premiums over traditional leasing.
Global Workspace Association Executive Director Jamie Russo notes that co-working and serviced office operators continue to offer add-on services, such as virtual offices, mail handling, and meeting room and event space rental.
Location within a retail environment would provide co-working users access to a variety of amenities, but Schilo suggests that operators could leverage the space to segue into retail uses, like short-term pop-ups, as this would be an ideal situation for retailers to showcase or test new products or conduct focus groups.