How landlords can offer coworking and flex offices

Just two years ago, the average US employee lived about 15 miles from work. Now, that employee lives 27 miles away. These are mostly folks with young families, in their 30s. 

The pandemic was a big reason for this migration.

Why do people go into an office at all? Three top reasons emerge: socialization, collaboration, and creating a clear delineation between work and home.

But who wants to drive further and stay later, 5 days a week?

All this is from Nick Bloom’s Future of Work report in July 2024. This data is practically a blueprint for why coworking and flex offices will only continue to grow in demand.

But commercial real estate, landlords, and property managers aren’t using this language yet. They know the modern office model isn’t viable anymore: more office inventory in first and second tier markets is sitting empty than ever before. And they know workers want flexibility and community. 

They don’t know that what they need is, in fact, coworking.

We talked with Craig Baute of DenSwap about this very thing. His agency delivers coworking feasibility reports, and he said what the industry needs is “entrepreneurial landlords” who recognize the value of incorporating flexible workspaces into their buildings. 

The demand for coworking spaces is steady, driven by businesses seeking versatile and community-driven environments.  Now landlords need to heed the call and offer a product to tenants that looks and feels different from traditional leases, but is, in fact, the way the workplace is going and a smart way to monetize space.

“But who will operate this flex space?”

That’s the big question. Property managers aren’t community managers. There is an art and a science to running a flexible office space. And that art isn’t on the table as a commercial real estate skill. Yet.

So landlords have distinct choices: they can partner with an operator who will come in with a brand, a look, a platform and take over. And the landlord will be happy to hand over the reins… until that landlord sees the margins on the space. That’s what Baute has seen: owners who are prospected by external operators and start to run the numbers themselves. That’s where DenSwap comes in. And the results often point to one thing: you’ll make more money if you do keep it inhouse. The Commons from Highwoods Real Estate is a great example of this.

So that leads us to the second choice: run the space yourself. CRE firms and property managers can, in fact, become flex operators. Or they can bring in a person who is experienced at it, and will help develop and promote a proprietary flex brand, offering more of a margin per square foot and even creating a pipeline of office tenants. 

How hard can it be to run a coworking space? 

Honestly, it can be as hard as you make it. With the right software, it can be streamlined and smart.

Selecting the right software is crucial — you can try and cobble together your own based on building management tools you have, but coworking requires a stack of features that are unique to a community-driven flex workspace.

Here’s why Coworks space management software stands out as the ultimate choice for landlords and property managers looking to create successful coworking spaces.

Coworks offers landlords seamless integration and a user-friendly interface — for members and managers

One of the primary considerations for landlords and property managers is the ease of integration of the software with existing building management systems. 

In his consulting work for landlords and property managers, Michael Abrams often got this question: "What is a platform ‘that works’?" He said. So he has to find out who is using it? How are much space are they managing What do they need from it?

Coworks is designed for all those answers, offering seamless integration with accounting, marketing, and access management tools for a truly great experience at front and back of house. But it’s not a walled garden, as they say. Its user-friendly interface means that property managers and members alike can use the app and the dashboard effortlessly, reducing the learning curve and enhancing the overall user experience.

Critical space management features

Coworking space management software can’t get away with doing just one thing or offering one function. Every space is unique, so the right blend of out-of-the-box functionality and customization is key.

Coworks provides a robust suite of features designed to address every aspect of managing a coworking space. From meeting and office booking to community events to member management and billing, Coworks offers a nearly all-in-one solution that simplifies operations. This comprehensive approach allows landlords and property managers to efficiently oversee their spaces, ensuring optimal utilization and profitability.

Genuine community engagement

A key differentiator of Coworks software — and coworking in general — is its focus on member engagement. Coworks includes tools for event creation and management, member networking, and easy communication, fostering a vibrant community within your coworking space. Her eis where landlords and property managers might balk: the community of an office was not previously a priority. But with a coworking model, you can create a dynamic and appealing environment that attracts and retains tenant members.

Real-time analytics and reporting

Data-driven decision-making is no secret to landlords and is essential for the success of any coworking space. Coworks provides data and reporting, giving landlords and property managers valuable insights into space utilization, member engagement, and financial performance. This provides proactive management and strategic planning, ensuring the coworking space remains competitive and profitable.

Managing the financial aspects of a coworking space can be complex, and might not seem as simple as a long term lease. Coworks simplifies this process with integrated billing, invoicing, and payment processing features. This streamlined financial management means transparency and accuracy, reducing administrative burdens and improving cash flow.

And as the demand for flexible workspaces continues to grow, the ability to scale operations is crucial. Coworks is designed with scalability in mind, allowing landlords and property managers to expand their coworking offerings seamlessly. Whether it’s adding new locations or increasing capacity, Coworks provides the infrastructure to support growth and adaptation.

Personalized support and training

Implementing a new software solution can be challenging, but Coworks offers human, customized support and training to ensure a smooth transition at time of implementation as well as new hires. We have a dedicated support team available to assist with any issues, and comprehensive training resources are provided to help get the most out of the platform.

Incorporating coworking spaces into modern office buildings is a strategic move that can drive value and appeal in today’s real estate market. However, the success of such an endeavor hinges on selecting the right software solution. 

Coworks space management software is designed as the ideal choice for landlords and property managers, offering seamless integration, comprehensive features, enhanced community engagement, and scalability. By choosing Coworks, landlords and property managers can create thriving coworking spaces that meet the evolving needs of modern tenants.