Covid has forced tenants to rethink office space usage, leading to an increase in vacancies. As subleases and new construction hit the market, rates are falling and demand for new master leases is tepid at best.
When will the market return to its pre-pandemic occupancy rates? Everyone has an opinion, but no one really knows.
However, it is certain that Covid has accelerated the trend towards flexible shared office space. Shorter term leases combined with multiple amenities has gained even more traction.
Fortunately for office property owners, a company called LocalWorks.us is converting vacant second generation suites into revenue in just thirty days. Using what LocalWorks calls its Space-as-a-Service platform, property owners, with little or no investment, can rapidly convert vacant space into a shared office suite.
LocalWorks operates all aspects of the business, from marketing the space to managing the day-to-day operations and collecting payments.
"The company really makes it easy for the property owner. While we were familiar with coworking and flex space, we had no serious intentions of launching our own operation, even though we had space available. In less than five months, LocalWorks filled the space for us. We're now at 90% of desired gross revenue with zero tenant improvement on our behalf," said David Smith, Managing Partner at Woodmont Properties, which owns 31 properties in the Washington DC metropolitan area.
"They've done such a good job, we're having them expand to additional vacancies in our portfolio," said Smith.