The world of Real Estate has been going through a phase of change where property owners do not simply want to collect rent from their properties. They’d rather utilise these assets for earning a regular revenue stream and this can take various forms- amongst these, shared office spaces seem to show the most promising future.
For a land-owner, establishing a coworking space can take two forms – setting up one themselves or partnering with a specialised company to do so; The second option is not only recommended over the first one but also over the choice of renting out spaces as traditional offices, due to the following reasons:
A coworking space offers flexibility compared to a conventional landlord and tenant relationship. The agreements are generally short-term, in the order of weeks or months; a month’s notice is typical.
2. Time – period:
The long lock-in periods of rent agreements virtually take away ownership whereas coworking provides the option to modify agreements at short intervals or even refuse to renew them as they tend to be renewable every month.
3. Brand Value:
This is an advantage one gets while collaborating with a specialised company for they bring with them a certain reputation and client base which gives the business a jump-start.
4. Higher Prospective Income:
For the property owner, coworking can be more efficient and fruitful in the long term as the number of memberships for a co-working space will exceed the available number of desks on the basis that not everyone will, or indeed can, use the space at the same time.
5. Ease of Management:
Leave all the management issues to the professional co-working companies and simply enjoy your partnership with them.
6. A chance to do much more:
Explore unconventional ideas such as hosting workshops, renting out as a venue for various film and television shoots, movie and book launches and so many other things that your conventional tenant would not let you do.
Just like a similar shift in other industries, landlords are shifting from acting as rent collectors to becoming service providers; so, just as in everything else, one shall have to adapt to survive.
CoKarya already has six shared office spaces across the city and is looking for more space partners to increase their presence and clientele!