Written by Mike Kriel, CEO of Launch Workplaces
You own an office building. It’s going to survive. Now the question is: how do you maximize the value of that building in an environment where the rules of commercial office space have fundamentally changed?
The way I think about it, the perfect building is an ecosystem that feeds itself. Every component works together — from someone renting a single desk to a Fortune 100 company taking an entire floor on a 10-year prime lease. Your building should be able to accommodate all of it.
So, what does that require? There are five ingredients.
1. Flexible workspace
This is your foundation. Hot desks, private offices, small teams. If it’s a larger building, you should also be able to serve enterprise clients who need significant space on short timelines. A Fortune 100 calls and says they need room for 150 people for nine months starting next week — can you say yes? If not, that’s a gap.
2. Plug and play spec suites
This is where a lot of buildings fall short. Having a white box spec suite available is not good enough. That’s not on demand. That’s 3,000 square feet with white paint and concrete floors that nobody can move into without months of build-out.
On-demand means I see it on Friday, I sign an agreement, I move my stuff in on Saturday, and I start working on Monday. Your spec suites need to be furnished and wired up — at a minimum with Wi-Fi — so a good operator with a solid technology package can manage it all from one spot. That’s plug and play.
3. Prime tenants
You still want traditional leases in the mix. Right now, 3,000 to 5,000 square feet is moving much faster than 20,000. But you need to be able to accommodate both — a full-floor, 10-year user and a GSA contractor who needs an office for a 90-day project.
You need range. The ability to say yes to almost anyone who walks through the door is what makes a building competitive.
4. Useful, activated amenities
Does your building need a gym and a cool coffee shop? No. But can you walk to one? If there is a fitness center or a grab-and-go in your building, is it useful — or is it just there?
You don’t have to have every amenity under the roof. But you do need to satisfy the needs of the people working in the building, whether that’s inside your walls or within walking distance.
5. Getting everyone on the same page
Here’s where it all ties together. Your coworking operator, your property management team, and your leasing team all need to be aligned on one thing: how do we create value for the building owner?
Your coworking operator should be helping manage and sell those spec suites. They should be able to handle enterprise-level space when a big client calls. They should be integrated into the leasing strategy — not operating in a silo.
If everyone’s not on the same page, you need to rearrange some things.
Choosing the right operator goes hand in hand with choosing the right agreement and creating the right feel for your space. And to do that, you need to know what’s going on competitively in your market.
Our mission as coworking operators is to add value to the building you own and operate. The buildings that come out ahead in this environment won’t just have tenants — they’ll have an ecosystem where every piece supports the others, and every person in the building has a reason to be there.
If you want to learn more about how to put all of this together, download our free ebook, The Commercial Landlord’s Guide to Flexible Office Space, or check out my Flex in Five series on YouTube.
And if you want to talk more in-depth, contact me today. I’d be happy to speak with you.
