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Simon Crawford on Flexible-Workspaces and Commercial Real Estate

November 16, 2020

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.”

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