Co-workspace operators have raised their sights and begun to pursue bigger spaces, which could spell trouble for landlords, experts in Australia have warned. The transition from soaking up small vacant locations to leasing large spaces and in some cases entire buildings creates a huge risk for landlords, according to Michael Cook , group executive for property at Investa. Michael Cook ’s comments were echoed by others in the industry including Urwin of WeWork who said weak leasing covenants signed with SPVs could leave landlords highly exposed. but it’s not necessarily applicable to the Australian market. Urwin warned that the market in Australia would face a big test in H2 2020 and Urwin a little earlier and a lot harder due to the excess of available co-workspace sites.
Co-workspace operators have raised their sights and begun to pursue bigger spaces, which could spell trouble for landlords, experts in Australia have warned. The transition from soaking up small vacant locations to leasing large spaces and in some cases entire buildings creates a huge risk for landlords, according to Michael Cook , group executive for property at Investa. Michael Cook ’s comments were echoed by others in the industry including Urwin of WeWork who said weak leasing covenants signed with SPVs could leave landlords highly exposed. Urwin warned that the market in Australia would face a big test in H2 2020 and Urwin a little earlier and a lot harder due to the excess of available co-workspace sites.