Good news for commitment-phobes: More and more landlords are tapping into the “flexible” office space market, thanks in part to the success of co-working companies, industry insiders say.
Flexible options cater to tenants that want temporary space, typically leases with terms of less than three years. Traditionally offered by large tenants with excess space, more and more small to mid-sized landlords are now jumping onto the bandwagon as well.
More than 30 percent of listings on LiquidSpace, an online platform for flexible office leasing, come from large tenants looking to sublet excess space, but a growing number of office building owners are joining their ranks, according to a survey by the company cited by National Real Estate Investor.
“Big owners want to provide flexible space to incubate early-stage tenants as they grow,” said Ryan Hoopes of Colliers International, noting that landlords are also hiring third-party co-working operators to help them establish flexible space in their properties.
Tech companies make up the bulk of short-term tenants seeking space. They make up 41 percent of such tenants on Liquidspace, followed by consulting firms at 24 percent, and financial services at 10 percent, the company said. [NREI] — Cathaleen Chen
Source: The Real Deal