Why Landlords are Partnering with Haibu Space

The pandemic’s massive shift to remote work has boosted many companies’ productivity – and has left landlords holding millions of square feet of unused office space.

Converting all those empty desks and conference rooms to coworking spaces has become a savvy way to keep revenue coming in, but it’s not as simple as just leasing to a new set of tenants. It takes smart strategy and special expertise in the unique aspects of this dynamic new real estate specialty.

Benefits and Challenges

There’s plenty of opportunity in flexible workspaces (also known as “flex”). The Global Workspace Alliance counts an astounding 230 million square feet of office space lying vacant since workers started working from home.

Filling it with coworking tenants means you can collect more rent for the same space – bringing as much as 30-40% more net operating income than from traditional leasing, according to the Commercial Real Estate Development Association.

And that’s just the beginning of the benefits. No one wants to work in a building that’s only partially occupied, so your existing tenants may be willing to pay more rent. This, in turn, can help increase the overall asset value of your property.

At Haibu Space, we’ve found one of the biggest benefits is the opportunity for the property owner to build a community within their property. Instead of just existing as a collection of disconnected renters, tenants often create networks that form a new kind of company culture – one important element that has gone unmet with the switch to remote work.

Managing flex spaces also has its challenges. In today’s market, the typical landlord doesn’t have the resources, staff, or training to run their own coworking space; even traditional leasing is usually outsourced to management companies. And coworking members have come to expect hospitality and business amenities like coffee and snack areas, up-to-date technology, networking spaces and even receptionist services.

Because of this, very few landlords will find success in coworking without partnering with someone who has experience running flex spaces profitably.

It’s invaluable for landlords and property owners to join forces with an expert partner in coworking like Haibu Space to tend to these important details and have a dedicated team to manage and support tenants’ distinctive needs. Additionally, traditional office leasing teams can benefit greatly from working closely with coworking sales teams and vice versa when it comes to sharing leads and marketing the property as a whole.

Having dedicated experts in the field, as well as a team of sales professionals and support staff can make all the difference in avoiding common pitfalls and generating a strong return on investment.

Next Steps in Adding Flex Spaces to Your Building

If you’re a landlord or property owner who has decided to add coworking to your building, contact us at Haibu Space and let us help you monetize your underperforming space.