Simon Crawford on Flexible-Workspaces and Commercial Real Estate

Simon Crawford comments in The Logic on why the trend of landlords allowing workshare providers more flexible commercial lease terms may be short-lived. He says, “Anytime there is an immediate month-over-month increase in the number of subleases available in a city, you’re going to see landlords allowing their space to be used on a more temporary basis. But whatever temporary benefit flex-office-space companies might be seeing, I don’t read it as being the beginning of a new trend…Landlords still prefer major institutional tenants.”

Simon refers to the deal-making flexibility on leases that co-working companies say they have right now as, “a bit like selling popsicles on a hot day."

"Sure, buildings that are more vulnerable to short-term vacancies may be more likely to entertain short-term solutions. This may be a short-term boom, but it is likely not sustainable as soon as things return to normal.”