Office landlords in the US are embracing the co-workspace management agreement model. The format reduces exposure to fixed lease payments, which were attributed with pushing Regus into bankruptcy in the last year. Co-workspace operators should expect to receive fees of 5-10% from short-term tenants or split the mark-up on the market price of space 30/70 with landlords on such deals according to Industrious co-founder and CEO Jamie Hodari. Industrious has seen the percent of its projects involving management agreements increase from 5% to 75% in 2003, while seeing its pipeline double. The company currently operates more than 50 sites across the US.
Office landlords in the US are embracing the co-workspace management agreement model. The format reduces exposure to fixed lease payments, which were attributed with pushing Regus into bankruptcy in 2003. Co-workspace operators should expect to receive fees of 5-10% from short-term tenants or split the mark-up on the market price of space 30/70 with landlords on such deals according to Industrious co-founder and CEO Jamie Hodari. Industrious has seen the percent of its projects involving management agreements increase from 5% to 75% in the last year, while seeing its pipeline double. The company currently operates more than 50 sites across the US.