This is outside of my knowledge zone, but I wonder if these types of offices couldn't find a market and value in other metro area cities. If the market is there, there's definitely a benefit.
WBJ - From Wichita to Hutchinson, IWG exec sees co-working space demand and potential
WBJ - From Wichita to Hutchinson, IWG exec sees co-working space demand and potential
"We're getting to a point now where we're actually struggling to meet the specific demands coming in for space," said Berger of what he's seeing in Wichita.
While Berger couldn't share specific details, he said there "are some real active opportunities within the greater Wichita area."
That could include long-vacant office spaces, as Berger confirmed he has seen landlords throughout the country — with limited exception — running into challenges with vacancies in Class B and C spaces.
In recent years, IWG has shifted its strategy from focusing on capital leases with its locations, to now a partnership-centric approach with owners.
Versus signing a lease, IWG signs a partnership agreement where a landlord invests capital, and IWG builds and operates the space in exchange for a fee. Then, according to Berger, the landlord receives all net income from revenues generated in the flex workspace location and landlords start earning operating income in the first month.
"As center performance matures, which is normally 12-to-18 months, that revenue increases," he said.
While Berger couldn't share specific details, he said there "are some real active opportunities within the greater Wichita area."
That could include long-vacant office spaces, as Berger confirmed he has seen landlords throughout the country — with limited exception — running into challenges with vacancies in Class B and C spaces.
In recent years, IWG has shifted its strategy from focusing on capital leases with its locations, to now a partnership-centric approach with owners.
Versus signing a lease, IWG signs a partnership agreement where a landlord invests capital, and IWG builds and operates the space in exchange for a fee. Then, according to Berger, the landlord receives all net income from revenues generated in the flex workspace location and landlords start earning operating income in the first month.
"As center performance matures, which is normally 12-to-18 months, that revenue increases," he said.
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