Industrious co-founder and CEO Jamie Hodari, says landlords are missing out on huge profits; with co-working companies making a killing, it's of little solace to the commercial landlords who own the space.
In fact, the shared workspace company's CEO thinks landlords should enter joint ventures or profit-sharing agreements with co-working firms, scrapping the traditional loan in the process.
At a panel discussion hosted by leasing management company VTS, Hodari cited his firm’s space in Union Square, where his company pays the landlord $67 per square foot, and in turn charges customers $320 per square foot, a markup of almost 400 percent that the landlord has no stake in.
“It’s the wrong relationship for both sides,” Hodari said. “It’s wrong for tenants, and it’s wrong for landlords.”
Read more here.
Join us in Madrid from the 13th to the 16th of November for the Property Portal Watch Conference.