Posted by Johann Nacario — December 6, 2024 — A new report reveals that 70% of commercial landlords are struggling to maintain profitability in the post-pandemic era. With many businesses navigating hybrid and remote work models, landlords are facing challenges in attracting and retaining tenants, and many are considering adopting coworking models to help monetize vacant spaces.
Adapt to Survive: the Coworking Revolution, from Accessia, reveals that 40% of commercial landlords are considering adopting a coworking model to monetize unused office space.
The report, Adapt to Survive: the Coworking Revolution, from Accessia, which interviewed 200 asset managers in the U.S., highlights several key issues:
- The impact of hybrid work – 41% of landlords say businesses are struggling to understand how much office space they need.
- The rise of coworking – Nearly half of landlords (40%) are considering transitioning to a coworking model to increase revenue.
- Understanding tenant needs – Only 25% of landlords fully understand how their spaces are being used.
- Occupancy struggles – 18% of landlords are struggling to maintain occupancy rates.
Mark Loney, CEO of Accessia, commented:
The way organizations operate has fundamentally shifted, and commercial landlords must adapt to remain competitive. While transitioning to a coworking model can be a solution, it’s crucial to understand that it requires more than just physical space. Understanding tenants and their needs is essential to create environments that attract and retain them.
To learn more about the challenges facing commercial landlords and how to address them, download the full report, Adapt to Survive: the Coworking Revolution.
