Flexible offices are no longer seen as the letting of last
resort or a stop gap solution for start-up businesses. They
increasingly appeal to a wide range of organisations attracted by
flexibility, quality of buildings and unique collaborative working
environments. However, as the recent WeWork cancelled initial
public offering (IPO) highlights, in this fast-evolving industry
which many landlords are keen to be involved in, there are
potential risks that need to be considered and managed when
exploring the many opportunities that flexible offices can
provide.
For landlords wishing to enter the market directly, a robust
strategy is needed to ensure that after considerable initial
expenditure on the building and brand, and the laborious direct
marketing and management of short-term tenancies, their venture
will be profitable. Safeguards such as requesting deposits and/or
guarantors from tenants will help mitigate risk. Requesting up
front rental payments for an agreed
