Recent earnings calls in the US by real estate-related companies reveal divisions within the commercial sector about the impact of co-working operators on the market. Boston Properties and SL Green Realty are among firms that that consider co-working an important net absorber of space. Others, such as Empire State Realty Trust, see it as disruptive and a disturbance to tenant, landlord and broker relationships. The debate is not just between those who believe co-living will be good for tenants but also whether it can work well enough to attract tenants.
Recent earnings calls in the US by real estate-related companies reveal divisions within the commercial sector about the impact of co-working operators on the market. Boston Properties and SL Green Realty are among firms that that consider co-working an important net absorber of space. Others, such as Empire State Realty Trust, see it as disruptive and a disturbance to tenant, landlord and broker relationships. They also complain co-working operators introduce outsized risk due to their weak equity-dependent business models.