Kaufman’s Grant Greenspan shares his insight
As the real estate community continues to be astounded by the valuations of WeWork, Knotel, Convene, and Industrious, we decided to explore ways landlords can take advantage of the bonanza.
In an interview with the Daily Beat… Kaufman’s Grant Greenspan explained that leasing a few floors to a co-working company can add “validity to the building”, and help land a major TAMI tenant.
Is the WeWork model sustainable? While he would not commit an entire building to such a company, he stressed that landlords can leverage the co-working concept to increase velocity of leases.
Mitigate the risk: WeWork recently signed a 11,818 square-foot lease at Kaufman’s 15 West 27th Street, bringing the office building to full occupancy. In this particular case, Kaufman felt comfortable because the lease was market rent (mid $60’s per SF), and it was the last two vacant floors in a 350,000 SF building.