In the past few months, we’ve been contacted by a number of new landlords who, by the time they reach out, already know enough to call us. They’ve already committed to adding flex office space into their portfolio.
And what I’m seeing, as a result, the entire process seems to be supercharged. On average, a flex workspace managed deal takes nine to twelve months, start to finish. But what I’m seeing now is that some of these deals are poised to get done in 90 to 120 days.
But why is this happening? Let me break it down for you.
The Old Ways of Getting Tenants Aren’t Working Anymore
Here’s a simple fact: traditional office leases are outdated.
That’s because:
- The demand for large-scale office space has shrunken significantly
- The terms people want to sign are usually less now
- The concessions that landlords need to give in order to lease that space to a tenant are astronomical
When you put those factors together, you realize that things have changed. Traditional tenants are hard to find, expensive to get into your space, and your payback on the deal is probably seven years away.
Instead, there seems to be a tremendous amount of demand for smaller space, shared conference centers, and rentable meeting rooms.
There’s Urgency in the Market
In my last article, I talked about how a lot of landlords simply have their heads in the sand when it comes to the future of work.
But on the other end of that spectrum are a whole lot of people encountering the challenge of having empty space and realizing it’s unlikely they’re going to get a 20,000 square foot tenant in a deal with actually works for them anymore.
So, as vacancies continue to pop up and large-scale tenants aren’t coming in the way they used to, landlords are starting to feel the pressure.
They’re wondering, “now what?”
Flexible Office Space is Becoming the Prominent Answer
As people have started realizing that the “old” ways of bringing in tenants are going the way of the dodo, panic is starting to set in.
So, landlords are looking for new ways to solve their problems.
And they’ve started looking at flex office space wondering, “what’s that?” and, “can it help us solve our vacancy problem?”
The answer is yes.
And as these new landlords are getting in touch with us, they’ve already done the research and realized this is their best play.
So, with large-scale vacancies literally burning holes in their pockets, they don’t have time to waste. And that’s why the flexible office space sales cycle is supercharged.
My question to you is this: are you ready to get ahead of the ball, or are you going to wait until the panic sets in to start thinking about what’s best for your building?
If you want to learn more, get in touch with me today. I’d be happy to talk you through the benefits it can offer you.
