Sell for More News is a weekly blog series with interesting information from the world of commercial real estate.
When Tishman Speyer launched its own coworking brand in 2018…called Studio…longtime players such as Regus and WeWork dominated the coworking space sector.
Tishman’s first Studio locations opened in Boston and Los Angeles in 2019. Other spaces soon followed due to high demand.
Today, an increasing number of notable landlords, including Hines, are copying the business model of one of the nation’s biggest commercial landlords.
What is their niche?
Free tap beer and Millennial décor are not everyone’s cup of tea. That’s where institutional landlords turned into coworking space operators think they’ve found a niche. They hope to address the needs of those seeking amenities and services that focus on improving employee productivity and well-being.
How has the coworking business changed in the last few years?
The industry continues to rapidly grow. Smaller companies are looking for a coworking space instead of subleases or spec suites.
We’ve also seen more large companies…almost all of whom lease traditional real estate as well…start to include flex office space as part of their holistic real estate strategy.
What’s motivating these large companies?
In some cases, they want coworking space included in the buildings they occupy so they can have a portion of their real estate be more flexible.
In other cases, they want coworking space in different locations for regional offices.
Or they want it for their full needs…in which case Tishman can provide fully serviced spaces dedicated to a single company.
What does it mean for a landlord to also offer flexible workspaces?
Tishman can provide its clients whatever they are looking for…from a hot desk…to a private office in a coworking floor…to multiple fully built and managed floors…to traditional space that the tenant builds in the same property…all under one platform.
Tishman can now provide space for companies of all sizes and growth stages, whether they are just starting up or are a global corporation.
They can also support a greater variety of real estate needs…from satellite office, testing out a new market without large upfront capital investment, looking for overflow or swing space for employees and temporary teams, or looking to outsource their real estate function so as not to worry about managing their spaces.
Tishman has also gotten into the conference center business so they’re able to provide companies with space to congregate and hold events.
What is Tishman’s business strategy for Studio?
Studio’s success is predicated on building a product that addresses a need in the market for beautiful, fun and fully serviced spaces that are also professional and elevated. Tishman believes it has always had a strong focus on hospitality and they continue to make this a focus in their coworking platform.
Why are more companies leaning on coworking spaces as satellite offices for their business?
Companies use coworking space as a satellite office if they are expanding into a new market and want to test that market before committing to a long-term space.
Also, they will use coworking space if they have a smaller team and want their satellite office of employees to feel engaged by a broader community and professional network.
Why are landlords getting into the coworking business?
Many major landlords are witnessing their tenant base becoming more and more interested in flexible space, but very few are doing it in-house. They’re starting to realize that coworking is not a trend, it’s a market shift.
What does the future of coworking look like?
Tishman believes flexible office space will continue to grow and gain more popularity and trust, especially amongst larger businesses.
Office space is no longer just a place to do work, but a key component in a company’s real estate strategy and employee experience.
Attracting and retaining talent requires modernizing work. It means working in new and innovative ways, providing employees a great workplace experience and fostering a strong sense of community and culture for people.
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About Beau Beach, MBA CCIM
Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.
Beau leads Beachwood which is a commercial real estate broker for sellers in the Nashville, Milwaukee and South Florida markets.
He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.
Beau can be reached at 800-721-3287, click to schedule a call or Beau@BeachwoodSells.com