Last week we learnt how new letting of serviced office leases have increased 176% year to date.
The rapid rise of offices "As A Service" business model is putting landlords under pressure to accept more flexible alienation clauses.
Serviced office providers are successfully demonstrating the difference between selling property with a software rather than hardware mindset. Meanwhile, corporate tenants recognise the importance of being able to share their space or make it available to their customers and consultants with greater lease freedoms becoming the norm.
Owners must shift from hardware to software mindset In the world of offices, the gap between what is demanded and what is being supplied is growing. There is clear evidence that we are at a crossroads for owners and developers of offices, where it’s crucial they recognise that the needs of their customers have shifted and they must run hard to catch up. The explosion of activity from the office as a service sector is a wake-up call for all owners of real estate. The opportunity of leasing large amounts of space to operators on long leases will become a threat unless landlords adjust the products and services that are offered to customers.