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U.S. landlords copy hotel model to cut risk as coworking surges

from U.S. News & World Report

Leading owners of prime U.S. office space are taking a page from the hotel industry to boost profits from coworking's rapid growth and to mitigate some of the risk they assume when signing long-term leases with these flexible workspace providers. Blackstone Group's EQ Office, private equity firm Rubenstein Partners LP and others have turned to "management agreements," a new format in the office market that avoids fixed-lease payments that critics say can be disastrous for coworking in a downturn. more


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