Re: [Coworking] Landlord Owner/Operator as Manager

[Nanette Mattox]

The space we are looking at has it’s own outside entrance so I am guessing that 
we could keep that accessible after hours if need be. Good thought on the HVAC 
etc after hours. 

 

Would it be wise to start with negotiating a standard PSF lease (low-ball) and 
see how that goes and then if they don’t accept it bring up rev-share? The LL 
was very excited about the concept of coworking space since the mall is 
struggling and this space has been empty for at least a year. 

 

Nanette

 

From:  on behalf of Jerome Chang 

Reply-To: 
Date: Saturday, July 7, 2018 at 11:56 AM
To: 
Subject: Re: [Coworking] Landlord Owner/Operator as Manager

 

Please be careful with malls. They often have strict opening and closing hours 
which might not work with your operations. For example, mall stores often open 
at 10 but you might want 8am or 9am office hours. 

 

Then there’s the shared HVAC in big buildings like this where you have to pay 
for extended hours, just like in class A buildings. Often $100-150/hour. 
Exorbitant. 

 

You can negotiate any revenue share. The numbers will be dictated by your 
profitability and the landlord’s motivation. The LL might want market rate or 
simply break even, if even that, to generate foot traffic in his mall. 

Jerome

www.BLANKSPACES.com


On Jul 7, 2018, at 8:09 AM, nanette.mat...@gmail.com wrote:

Thanks! Rev Share. Thats the term I was looking for! The space we are looking 
at is inside a mall that has a lot of empty spaces. Would love to know exactly 
what those kinds of numbers look like. 



On Friday, July 6, 2018 at 4:31:29 PM UTC-4, Jerome wrote:

One key word that you can use that’s standard in the real estate world:

   - “rev share”. This is common for retail stores inside malls. The 
more you earn, the more rent you pay.

Another is like the hotel industry, where a hotel brand/operator might…

   - have a minority ownership stake in the building, but this requires 
the hotel to invest some $.

   - win a bid to operate a hotel b/c the developer wanted a hotel from 
the start.

 

So here’s the main difference b/w hotels and coworking: developers want a hotel 
from the start, so they need an operator. Office developers mostly don’t want 
coworking initially, but now are considering it, which is more of a fix for 
their vacancy or rental income after the fact rather than initially.

 

Good luck!

 

JEROME CHANG

 

talk to us: (323) 330-9505

chat w/ us: http://www.BLANKSPACES.com/chat

 

WEST: Santa Monica | 1450 2nd St (@Broadway)

CENTRAL: Culver City | 9415 Culver Blvd (@Main St)

EAST: Downtown LA | 529 S Broadway (@Pershing Sq)

NORTH: Pasadena | 680 E. Colorado, Ste 180 (b/w Lake and Los Robles)

SOUTH: Long Beach | 309 Pine Ave (@Broadway) - opening Summer 2018

 

On Jul 6, 2018, at 10:25 AM, nanette...@gmail.com wrote:

 

Hi group! I've been following all of your great questions and advice for a bit 
now. Thanks so much!

My business partner and I are still in the "planning and searching for a space" 
phase. Still so much to learn! 

Since we do not have a large amount of capital to put in this business we are 
looking at all the options. 

Has anyone entered into an agreement with a landlord where they are the owner 
and you are the operator/manager? Is it traditionally known by another term? We 
keep hearing about such arrangements but would love to hear about a specific 
example and what kind of terms might be acceptable.

You can read about the reference to the concept here (the second option in the 
article): 
https://www.globalworkspace.org/2016/03/three-ways-to-run-a-coworking-space-without-signing-a-lease/

 

 

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Re: [Coworking] Landlord Owner/Operator as Manager

[Joshua Webb]

Jerome is very right when selecting a building look for ones that have in
suite thermostats. And all inclusive rents meaning that they electric and
water is shared across all tenants. you typically will get a better deal on
your utility expenses. This is also helpful when negotiation the HVAC
overage costs.

While a mall is a good foot traffic draw pay close attention to what Jerome
said about the business hours. Most of our coworkers come evening and
weekends. That means that I can not do deals with any property that wont
grant our members access on their "off hours"

For your space your looking at make sure to sus out why the mall has empty
spaces. If it is due to lack of current foot traffic this can indicate that
you will have a dificult time as well. Malls are a dying breed and
typically have extremely high rent rates. Some even have a rent plus Rev
Share in their standard leases.

I made the mistake one time of choosing a larger space for cheaper rent
than a slighly small space with a higher cost but was located directly next
to an anchor space (think office depot, office max)

So in your case try to be next to a food court or a very strong departments
store in the mall. Dont take a large space at the end of the hall.

Also consider convenience for your members. Will they have to walk far from
their cars to get to you in the mall. Pick a space that makes it easy.

Some land lords will push for 50% rev share so will go less. it all depends
on how much buildout your asking for and how quickly they can get it back.
As I said early only do a rev share if they will accept a Cap. You need
room for profit and growth.

*J**oshua Webb*

*Chief Growth Antagonist*jos...@growthli.com   *844-455-GROW <18444554769> *
*(**4769)*   *Growthli.com* 


On Sat, Jul 7, 2018 at 10:56 AM, Jerome Chang 
wrote:

> Please be careful with malls. They often have strict opening and closing
> hours which might not work with your operations. For example, mall stores
> often open at 10 but you might want 8am or 9am office hours.
>
> Then there’s the shared HVAC in big buildings like this where you have to
> pay for extended hours, just like in class A buildings. Often
> $100-150/hour. Exorbitant.
>
> You can negotiate any revenue share. The numbers will be dictated by your
> profitability and the landlord’s motivation. The LL might want market rate
> or simply break even, if even that, to generate foot traffic in his mall.
>
> Jerome
> www.BLANKSPACES.com
>
> On Jul 7, 2018, at 8:09 AM, nanette.mat...@gmail.com wrote:
>
> Thanks! Rev Share. Thats the term I was looking for! The space we are
> looking at is inside a mall that has a lot of empty spaces. Would love to
> know exactly what those kinds of numbers look like.
>
>
> On Friday, July 6, 2018 at 4:31:29 PM UTC-4, Jerome wrote:
>>
>> One key word that you can use that’s standard in the real estate world:
>> - “rev share”. This is common for retail stores inside malls. The more
>> you earn, the more rent you pay.
>> Another is like the hotel industry, where a hotel brand/operator might…
>> - have a minority ownership stake in the building, but this requires the
>> hotel to invest some $.
>> - win a bid to operate a hotel b/c the developer wanted a hotel from the
>> start.
>>
>> So here’s the main difference b/w hotels and coworking: developers want a
>> hotel from the start, so they need an operator. Office developers mostly
>> don’t want coworking initially, but now are considering it, which is more
>> of a fix for their vacancy or rental income after the fact rather than
>> initially.
>>
>> Good luck!
>>
>>
>> *JEROME CHANG*
>>
>> talk to us: (323) 330-9505
>> chat w/ us: http://www.BLANKSPACES.com/chat
>> 
>>
>> *WEST: Santa Monica* | 1450 2nd St (@Broadway
>> 
>> )
>> *CENTRAL: Culver City* | 9415 Culver Blvd (@Main St
>> 
>> )
>> *EAST: Downtown LA* | 529 S Broadway
>> 
>> (@Pershing Sq)
>> *NORTH: Pasadena* | 680 E. Colorado, Ste 180
>> 
>> (b/w Lake and Los Robles)
>> *SOUTH: Long Beach* | 309 Pine Ave
>> 
>> (@Broadway) - opening Summer 2018
>>
>> On Jul 6, 2018, at 10:25 AM, nanette...@gmail.com wrote:
>>
>> Hi group! I've been following all of your great questions and advice for
>> a bit now. Thanks so much!
>> My business partner and I are still in the "planning and searching for a
>> space" phase. Still so much to learn!
>> Since we do not have a large amount of capital to put in this business we
>> are looking at all the options.
>> Has anyone entered into an agreement with a landlord where they are the
>> owner and you are the operator/manager? Is it 

Re: [Coworking] Landlord Owner/Operator as Manager

[Jerome Chang]

Please be careful with malls. They often have strict opening and closing hours 
which might not work with your operations. For example, mall stores often open 
at 10 but you might want 8am or 9am office hours. 

Then there’s the shared HVAC in big buildings like this where you have to pay 
for extended hours, just like in class A buildings. Often $100-150/hour. 
Exorbitant. 

You can negotiate any revenue share. The numbers will be dictated by your 
profitability and the landlord’s motivation. The LL might want market rate or 
simply break even, if even that, to generate foot traffic in his mall. 

Jerome
www.BLANKSPACES.com

> On Jul 7, 2018, at 8:09 AM, nanette.mat...@gmail.com wrote:
> 
> Thanks! Rev Share. Thats the term I was looking for! The space we are looking 
> at is inside a mall that has a lot of empty spaces. Would love to know 
> exactly what those kinds of numbers look like. 
> 
> 
>> On Friday, July 6, 2018 at 4:31:29 PM UTC-4, Jerome wrote:
>> One key word that you can use that’s standard in the real estate world:
>>  - “rev share”. This is common for retail stores inside malls. The more 
>> you earn, the more rent you pay.
>> Another is like the hotel industry, where a hotel brand/operator might…
>>  - have a minority ownership stake in the building, but this requires 
>> the hotel to invest some $.
>>  - win a bid to operate a hotel b/c the developer wanted a hotel from 
>> the start.
>> 
>> So here’s the main difference b/w hotels and coworking: developers want a 
>> hotel from the start, so they need an operator. Office developers mostly 
>> don’t want coworking initially, but now are considering it, which is more of 
>> a fix for their vacancy or rental income after the fact rather than 
>> initially.
>> 
>> Good luck!
>> 
>> 
>> JEROME CHANG
>> 
>> talk to us: (323) 330-9505
>> chat w/ us: http://www.BLANKSPACES.com/chat
>> 
>> WEST: Santa Monica | 1450 2nd St (@Broadway)
>> CENTRAL: Culver City | 9415 Culver Blvd (@Main St)
>> EAST: Downtown LA | 529 S Broadway (@Pershing Sq)
>> NORTH: Pasadena | 680 E. Colorado, Ste 180 (b/w Lake and Los Robles)
>> SOUTH: Long Beach | 309 Pine Ave (@Broadway) - opening Summer 2018
>> 
>>> On Jul 6, 2018, at 10:25 AM, nanette...@gmail.com wrote:
>>> 
>>> Hi group! I've been following all of your great questions and advice for a 
>>> bit now. Thanks so much!
>>> My business partner and I are still in the "planning and searching for a 
>>> space" phase. Still so much to learn! 
>>> Since we do not have a large amount of capital to put in this business we 
>>> are looking at all the options. 
>>> Has anyone entered into an agreement with a landlord where they are the 
>>> owner and you are the operator/manager? Is it traditionally known by 
>>> another term? We keep hearing about such arrangements but would love to 
>>> hear about a specific example and what kind of terms might be acceptable.
>>> You can read about the reference to the concept here (the second option in 
>>> the article): 
>>> https://www.globalworkspace.org/2016/03/three-ways-to-run-a-coworking-space-without-signing-a-lease/
>>> 
>>> 
>>> -- 
>>> You received this message because you are subscribed to the Google Groups 
>>> "Coworking" group.
>>> To unsubscribe from this group and stop receiving emails from it, send an 
>>> email to coworking+...@googlegroups.com.
>>> For more options, visit https://groups.google.com/d/optout.
> 
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Re: [Coworking] Landlord Owner/Operator as Manager

[nanette . mattox]

Thanks! Rev Share. Thats the term I was looking for! The space we are 
looking at is inside a mall that has a lot of empty spaces. Would love to 
know exactly what those kinds of numbers look like. 


On Friday, July 6, 2018 at 4:31:29 PM UTC-4, Jerome wrote:
>
> One key word that you can use that’s standard in the real estate world:
> - “rev share”. This is common for retail stores inside malls. The more you 
> earn, the more rent you pay.
> Another is like the hotel industry, where a hotel brand/operator might…
> - have a minority ownership stake in the building, but this requires the 
> hotel to invest some $.
> - win a bid to operate a hotel b/c the developer wanted a hotel from the 
> start.
>
> So here’s the main difference b/w hotels and coworking: developers want a 
> hotel from the start, so they need an operator. Office developers mostly 
> don’t want coworking initially, but now are considering it, which is more 
> of a fix for their vacancy or rental income after the fact rather than 
> initially.
>
> Good luck!
>
>
> *JEROME CHANG*
>
> talk to us: (323) 330-9505
> chat w/ us: http://www.BLANKSPACES.com/chat 
>
> *WEST: Santa Monica* | 1450 2nd St (@Broadway)
> *CENTRAL: Culver City* | 9415 Culver Blvd (@Main St)
> *EAST: Downtown LA* | 529 S Broadway (@Pershing Sq)
> *NORTH: Pasadena* | 680 E. Colorado, Ste 180 (b/w Lake and Los Robles)
> *SOUTH: Long Beach* | 309 Pine Ave (@Broadway) - opening Summer 2018
>
> On Jul 6, 2018, at 10:25 AM, nanette...@gmail.com  wrote:
>
> Hi group! I've been following all of your great questions and advice for a 
> bit now. Thanks so much!
> My business partner and I are still in the "planning and searching for a 
> space" phase. Still so much to learn! 
> Since we do not have a large amount of capital to put in this business we 
> are looking at all the options. 
> Has anyone entered into an agreement with a landlord where they are the 
> owner and you are the operator/manager? Is it traditionally known by 
> another term? We keep hearing about such arrangements but would love to 
> hear about a specific example and what kind of terms might be acceptable.
> You can read about the reference to the concept here (the second option in 
> the article): 
> https://www.globalworkspace.org/2016/03/three-ways-to-run-a-coworking-space-without-signing-a-lease/
>
>
> -- 
> You received this message because you are subscribed to the Google Groups 
> "Coworking" group.
> To unsubscribe from this group and stop receiving emails from it, send an 
> email to coworking+...@googlegroups.com .
> For more options, visit https://groups.google.com/d/optout.
>
>
>

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Re: [Coworking] Landlord Owner/Operator as Manager

[nanette . mattox]

Thanks Joshua! Seems like the smarter way to get started. 

On Friday, July 6, 2018 at 4:57:23 PM UTC-4, Joshua Webb wrote:
>
> be very careful giving ownership of your concept blood sweat and tears to 
> a building owners who pure motivations is to fill space by what ever means 
> necessary. 
>
> There are others ways to do this. For instance. Do a Percentage Lease with 
> TI Allowances. A percentage lease keeps you in the drivers seat as the 
> owner of the concept but splits the Net reveues with your landlord. So as 
> you grow his rent grows. I highly suggest puting in a cap so that he does 
> not make more that what the space is work. Unless you are asking for a lot 
> of build out then you can add in some ROI for that for him as well. Just so 
> they can get their money back.
> Doing a percentage lease also can allow you to take more space than you 
> can afford right off. Find a building in a area of town that is good but 
> that the building is quite empty. This owner is going to be more likly to 
> play ball since he needs to fill his building. Also if the building is a 
> high rise tell him that as your members grow they will need more space and 
> will become his tenants. You are not only filling space for him you are a 
> feeder for his building. 
>
> All in all there are a ways to do this so that you are not giving up 
> control of your community concept to someone else just for money. 
>
> *J**oshua Webb*
>
> *Chief Growth Antagonist*jos...@growthli.com
> *844-455-GROW **(**4769)*   *Growthli.com*  
>
>
> On Fri, Jul 6, 2018 at 12:25 PM, > 
> wrote:
>
>> Hi group! I've been following all of your great questions and advice for 
>> a bit now. Thanks so much!
>> My business partner and I are still in the "planning and searching for a 
>> space" phase. Still so much to learn! 
>> Since we do not have a large amount of capital to put in this business we 
>> are looking at all the options. 
>> Has anyone entered into an agreement with a landlord where they are the 
>> owner and you are the operator/manager? Is it traditionally known by 
>> another term? We keep hearing about such arrangements but would love to 
>> hear about a specific example and what kind of terms might be acceptable.
>> You can read about the reference to the concept here (the second option 
>> in the article): 
>> https://www.globalworkspace.org/2016/03/three-ways-to-run-a-coworking-space-without-signing-a-lease/
>>
>> -- 
>> You received this message because you are subscribed to the Google Groups 
>> "Coworking" group.
>> To unsubscribe from this group and stop receiving emails from it, send an 
>> email to coworking+...@googlegroups.com .
>> For more options, visit https://groups.google.com/d/optout.
>>
>
>

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Re: [Coworking] Landlord Owner/Operator as Manager

[Joshua Webb]

be very careful giving ownership of your concept blood sweat and tears to a
building owners who pure motivations is to fill space by what ever means
necessary.

There are others ways to do this. For instance. Do a Percentage Lease with
TI Allowances. A percentage lease keeps you in the drivers seat as the
owner of the concept but splits the Net reveues with your landlord. So as
you grow his rent grows. I highly suggest puting in a cap so that he does
not make more that what the space is work. Unless you are asking for a lot
of build out then you can add in some ROI for that for him as well. Just so
they can get their money back.
Doing a percentage lease also can allow you to take more space than you can
afford right off. Find a building in a area of town that is good but that
the building is quite empty. This owner is going to be more likly to play
ball since he needs to fill his building. Also if the building is a high
rise tell him that as your members grow they will need more space and will
become his tenants. You are not only filling space for him you are a feeder
for his building.

All in all there are a ways to do this so that you are not giving up
control of your community concept to someone else just for money.

*J**oshua Webb*

*Chief Growth Antagonist*jos...@growthli.com   *844-455-GROW <18444554769> *
*(**4769)*   *Growthli.com* 


On Fri, Jul 6, 2018 at 12:25 PM,  wrote:

> Hi group! I've been following all of your great questions and advice for a
> bit now. Thanks so much!
> My business partner and I are still in the "planning and searching for a
> space" phase. Still so much to learn!
> Since we do not have a large amount of capital to put in this business we
> are looking at all the options.
> Has anyone entered into an agreement with a landlord where they are the
> owner and you are the operator/manager? Is it traditionally known by
> another term? We keep hearing about such arrangements but would love to
> hear about a specific example and what kind of terms might be acceptable.
> You can read about the reference to the concept here (the second option in
> the article): https://www.globalworkspace.org/2016/03/
> three-ways-to-run-a-coworking-space-without-signing-a-lease/
>
> --
> You received this message because you are subscribed to the Google Groups
> "Coworking" group.
> To unsubscribe from this group and stop receiving emails from it, send an
> email to coworking+unsubscr...@googlegroups.com.
> For more options, visit https://groups.google.com/d/optout.
>

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Re: [Coworking] Landlord Owner/Operator as Manager

[Jerome Chang]

One key word that you can use that’s standard in the real estate world:
- “rev share”. This is common for retail stores inside malls. The more 
you earn, the more rent you pay.
Another is like the hotel industry, where a hotel brand/operator might…
- have a minority ownership stake in the building, but this requires 
the hotel to invest some $.
- win a bid to operate a hotel b/c the developer wanted a hotel from 
the start.

So here’s the main difference b/w hotels and coworking: developers want a hotel 
from the start, so they need an operator. Office developers mostly don’t want 
coworking initially, but now are considering it, which is more of a fix for 
their vacancy or rental income after the fact rather than initially.

Good luck!


JEROME CHANG <>

talk to us: (323) 330-9505 <>
chat w/ us:  <>http://www.BLANKSPACES.com/chat 

WEST: Santa Monica <> |  <>1450 2nd St (@Broadway)
CENTRAL: Culver City <> |  <>9415 Culver Blvd (@Main St)
EAST: Downtown LA <> |  <>529 S Broadway (@Pershing Sq)
NORTH: Pasadena <> |  <>680 E. Colorado, Ste 180 (b/w Lake and Los Robles)
SOUTH: Long Beach <> |  <>309 Pine Ave (@Broadway) - opening Summer 2018

> On Jul 6, 2018, at 10:25 AM, nanette.mat...@gmail.com wrote:
> 
> Hi group! I've been following all of your great questions and advice for a 
> bit now. Thanks so much!
> My business partner and I are still in the "planning and searching for a 
> space" phase. Still so much to learn! 
> Since we do not have a large amount of capital to put in this business we are 
> looking at all the options. 
> Has anyone entered into an agreement with a landlord where they are the owner 
> and you are the operator/manager? Is it traditionally known by another term? 
> We keep hearing about such arrangements but would love to hear about a 
> specific example and what kind of terms might be acceptable.
> You can read about the reference to the concept here (the second option in 
> the article): 
> https://www.globalworkspace.org/2016/03/three-ways-to-run-a-coworking-space-without-signing-a-lease/
> 
> 
> -- 
> You received this message because you are subscribed to the Google Groups 
> "Coworking" group.
> To unsubscribe from this group and stop receiving emails from it, send an 
> email to coworking+unsubscr...@googlegroups.com 
> .
> For more options, visit https://groups.google.com/d/optout 
> .

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[Coworking] Landlord Owner/Operator as Manager

[nanette . mattox]

Hi group! I've been following all of your great questions and advice for a 
bit now. Thanks so much!
My business partner and I are still in the "planning and searching for a 
space" phase. Still so much to learn! 
Since we do not have a large amount of capital to put in this business we 
are looking at all the options. 
Has anyone entered into an agreement with a landlord where they are the 
owner and you are the operator/manager? Is it traditionally known by 
another term? We keep hearing about such arrangements but would love to 
hear about a specific example and what kind of terms might be acceptable.
You can read about the reference to the concept here (the second option in 
the 
article): 
https://www.globalworkspace.org/2016/03/three-ways-to-run-a-coworking-space-without-signing-a-lease/

-- 
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