Search
 

Office Owners Warm Up to Co-working Tenants

Co-working operators have been a disruptor in the office market, but owners are beginning to open up to these lease deals.

By Kelsi Maree Borland | Updated on February 01, 2018

John Tipton John Tipton is an operating partner at Allen Matkins.

Office owners are warming up to co-working tenants. Companies like WeWork have proven to be a disruptor in the office market, and some office owners have been weary to sign leases with these companies. It has been clear, however, that transient-based companies are here to stay—and office owners are adapting to the new environment.

“It is a mixed bag,” John Tipton, a partner at Allen Matkins, tells GlobeSt.com when asked if office owners are warming to co-working companies. “At the end of the day, your traditional landlord would love to enter into a lease of two floors with a triple credit tenant, instead of a company that makes its revenue stream from leasing space in 30-day blocks. That is just common sense, but that is no longer the reality of the marketplace. You have to securitize those leases appropriately, but I am no longer seeing landlords draw a line in the sand, generally.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2025 ALM Global, LLC. All Rights Reserved.