The Coworking Movement – Bright Future for Landlords & Property Managers
The coworking industry is no less than a movement, with benefits that are being enjoyed by many! Companies have seen major improvements in their business like opportunities and entry in new markets, outsourced management of office, beautiful designs, and flexible work environment. Question arises regarding the coworking benefits and the future of landlords and property managers in this whole scenario.
Apart from entrepreneurs, big and small, there are other sectors that are benefitting from the growth of the coworking industry, like property managers and landlords. With the growing demand for shared office spaces, the coworking industry is growing, and landlords want in on this opportunity to grow with the industry. A lot of landlords and property managers are investing in the coworking industry today, reaping the benefits of this booming sector.
Here are the reasons why landlords and property managers have a bright future because of the coworking movement –
Better Build Outs & Higher Property Value
An office is no longer about a desk and a chair where you can sit and work. The designing aspect of an office is very important today to give the space a character and has a direct influence on office productivity and environment. Over and above this, landlords today follow the practice of improving the building amenities to increase the overall value of the building.
Companies are looking for office spaces that are designed and structured, specifically to promote productivity and efficiency in their business and working style. Doing this may not be a feasible option for property managers and landlords, and this is where coworking companies come into the picture. With the help of coworking, landlords can pass on beautiful and equipped offices to their ultimate tenants, which would not have been possible with a typical lease.
Additionally, with the growth of a company and the increase in its need for an office space, it can easily expand within the same property with a build out already in place. This means that the upgrade expenditure for the landlord becomes lower.
Technology & Innovation
With the help of coworking, landlords can provide the latest innovation and technology to the companies that occupy the office spaces. A workspace that is technologically sound and equipped is crucial for efficiency, and coworking spaces ensure that these needs are met.
The partnership of a landlord and the coworking platform ensures the presence of an expert to keep the property technologically updated and maintained, giving it a competitive advantage.
Customer Base Expansion
A coworking space is ideal for businesses that are growing, entrepreneurs that are trying to make a place in the market, and even freelancers. Ths requirement may be long-term or short-term. Shorter business cycles, growing number of contract assignments, temporary staffing, and a team that is spread across multiple geographical locations, are major contributors to this growing need for shared and flexible office spaces.
This is the reason why the landlord never has to worry about filling up space or finding an accommodation for the property. Coworking as an option for businesses is giving property managers and landlords the assurance that they do not have to worry about their office spaces remaining empty or falling behind in the competition.
Landlords and property managers are looking at increased property value, tenant retention, and better property credibility, because of their partnership with coworking companies.
Overall, landlords and property managers are continuing to benefit largely from the coworking revolution. The coworking industry has eliminated, the need for a large amount of capital from the landlord to build up an office space, expenditure on renovations, and other incidental charges related to leasing of the property. The growth or movement of a tenant has a direct impact on landlords. With coworking spaces and business centers as the mediator, these bumps of uncertainty are smoothed out.