In our video, we describe how Landlords benefit from a Partnership with YES! Your Exceptional Space.
With so many current pain points facing landlords, one solution is to partner with YES! to explore the higher-than-market rents that coworking and flexible office business can deliver.
Our interview is moderated by our publicist, Macy Troyer of Blossm Social Media and Marketing.
Macy Troyer: Wendy, what are the pain points landlords may be currently facing?
Wendy Spreenberg: Well, as we’ve all been through COVID, we realize that this has been such an unusual time for everyone, including landlords, tenants and office space as everybody’s trying to figure out what the next step and how they’re going to have their teams be in office space or not, for that matter. So what we’ve realized after a pause is that more standard leases are scheduled right now, to expire this year in 2022. than any previous year on record, according to a JLL report that was published by The Wall Street Journal, so approximately 243 million square feet of office space scheduled to expire. So as a result, from the Zeisler Capital Associates report, it looks like approximately 70% of US office buildings, which means 30% of the nation’s inventory, and over $1.1 trillion in estimated value may become functionally obsolete. So landlords are in the predicament of figuring out, “I have vacant space, what do I do with my vacant space, my building’s a little bit older.” The challenge too, is that loans against the buildings may be coming due, and the valuation on those buildings is less than the loan amount on the building. So here we are with this dilemma. And what we’re trying to do is determine how to create a new experience in a new environment in these buildings with higher vacancy.
Macy: Wow. And Wendy, how does YES! provide guidance?
Wendy: What we do is first come in with you is a financial modeling of your asset because it provides a realistic picture of what it will take as an investment and the potential revenue growth. And it’s based on our 20 years of experience advising over 120 locations across North America. So our primary goal in working with you is to protect that investment. So are we know that co working and flexible office space that delivers above-market revenues than a traditional landlord-tenant relationship. So as an example, it may cost one and a half times more than a traditional build out to create a flexible work space coworking space. But you’re able to charge between two to two and a half times the market rent. Because it’s convenient, it’s easy, it’s a solution for tenants to move in quickly to create this dynamic environment and quickly get to work. So the type of business incubator that it develops as well allows a coworking flex Office solution to feed spec suites that may be in the 1500 to 2500 square foot. And then the client is able to grow with within the building as well. So beyond this, if we believe that the investment is sound in trying to create this type of coworking flex space, we will then partner with our clients to deliver on the model that we recommend.
So we will walk the talk with you well, and how do we engage with you and yes, as the landlord.
Our best option is to work with you as the landlord when you’re really first considering this thinking about it. It’s really a situation if you’re stuck and you’ve heard about co working and you think it’s a great solution. But it’s before you’ve moved forward with any plans and the floor plans and you design build while the plans are being developed is still a good stage for us. But before any construction begins because our best value is to protect your invest investment and show you the financial model and how it’s delivered.
Macy: Thank you Wendy.
Wendy: Thank you