“Shared Office Space” Tenants Widening CRE Niche

Some office building owners are taking advantage of a growing phenomenon: tenants that specialize in using the space they rent to set up move-in ready, executive office suites for companies that want the benefit of professional office space, without restrictive, long-term leases. Upscale building owners are benefiting from the business model, which uses shared office space solutions that feature common areas like client lounges and open spaces for socializing and networking, as well as closed offices and conference rooms for uninterrupted privacy.

Most recently, Manhattan’s historic Time-Life Building has rented space to Quest Workspaces, a company that over the past several years has carved out its unique niche in CRE by offering flexible workspace solutions and leasing options in the space it leases in iconic and Class A buildings in Florida and New York City. It seems that tenants that provide access to move-in ready offices for businesses that, as a result of being at various stages of development, otherwise wouldn’t be able to use professional office space, are transitioning from a trend to a tenant type that’s here to stay.