We asked Faye Stutts, National Director of Coworking Partnerships, Vari to share her insights on flexible workspaces, as part of our series into the buildings of the future.
What are the biggest challenges facing the flexible workspace market today?
The demand for a flexible short-term solution is significantly increasing and not changing any time soon. While some landlords have taken the plunge and started drinking the water, many are still trying to figure out how to incorporate this solution into their business model. The ones that are still scratching their heads are missing out on opportunities and most importantly, REVENUE. The lack of knowledge, market data, and resources on how to erase everything they have been taught when negotiating a deal is the main factor. Some are simply resistant to sell any other way but the “traditional” way, which is causing the decline in CRE occupancy nationwide.
Some landlords see the “smaller” short term deals as a waste of time while others, who have executed on a flex program, are signing 6–36-month leases at triple the rents. Having a turnkey solution with the right partners is key to their successes. Corporations are paying for the convenience of services that come with flex. This includes a strong technology platform, common areas, amenities, and flexible solutions etc.
Flex spaces offer flexibility for companies to test out the market before putting ink to paper for the next 10 years. Eliminating the risk of losing millions of dollars in company overhear is why flex is here to stay!
Read more insights from the industry experts:
Part 2 with Davey Friedman, Vice President, Real Estate at Arch Amenities Group.
Part 3 with Mark Burge, President, Flex Workspace Solutions.
Part 4 with Michael Kloppenburg, Vice President, Avison Young.
Part 5 with Jamie Russo, CEO, Everything Coworking.
Part 6 with Liz Elam, Founder of GCUC Global.