Office Owners Warm Up To Co-Working Tenants

GlobeSt.com (February 1, 2018) Office owners are warming up to co-working tenants. Companies like WeWork have proven to be a disruptor in the office market, and some office owners have been weary to sign leases with these companies. It has been clear, however, that transient-based companies are here to stay—and office owners are adapting to the new environment. “It is a mixed bag,” John Tipton, a partner at Allen Matkins, tells GlobeSt.com when asked if office owners are warming to co-working companies. “At the end of the day, your traditional landlord would love to enter into a lease of two floors with a triple credit tenant, instead of a company that makes its revenue stream from leasing space in 30-day blocks. That is just common sense, but that is no longer the reality of the marketplace. You have to securitize those leases appropriately, but I am no longer seeing landlords draw a line in the sand, generally.”