The Future Of Office Space Leasing Models

What if we stopped thinking about office buildings as real estate and started thinking about them as hotels? Jamie Hodari's $800M vision: I asked Jamie Hodari: What would you do with a sad, empty Class B office building? His answer? Scrap everything you know about office buildings. It's time to run them like hotels. Not just with concierge desks and fancy lobbies. With an entirely different operating model. Here's what Jamie proposes: Option 1: "Hotel-style productized workplace" Turn the entire building into a flex space where: • It's 80% built out already • You take what you need (5K or 50K sq ft) • The building runs everything for you • There's a GM, not a property manager • Every experience feels seamless Option 2: "Building nerve center" Convert lower floors into a powerhouse that: • Functions as the building's engine • Houses all shared conference rooms • Provides flex space for everyone • Runs programming for all tenants • Supports traditional leases upstairs This isn't about better design. It's about a fundamentally different approach. Most office owners are still playing the wrong game: Traditional owners focus on: • Marble lobby upgrades • Flashy building amenities • Leasing broker relationships • Asset management metrics • Rent per square foot The winners care about: • Operational excellence • Experience programming • Tenant service levels • Daily user satisfaction • Value beyond four walls The results speak volumes: Tenants will pay more for: • Less space they control • More services they receive • Better experiences for employees • Simplified real estate decisions • A building that works for them Here's why this matters: For Class B buildings with: • Location challenges • Dated infrastructure • Competition disadvantages • Lower leasing velocity • Pricing pressure This isn't an incremental improvement. It's completely rewriting the rules. As Jamie told me, it's the Malcolm Gladwell basketball strategy: "When you're David fighting Goliath, don't try to meet them on their terms." What has an office building done that you loved?

The Rise of Coworking: What It Means for Traditional Leasing Models Coworking spaces aren’t just a trend—they’re reshaping the way businesses think about office leasing. Here’s what we’re seeing: 1. Flexibility is King: Companies want short-term leases and scalable spaces to match their growth (or contraction) without long-term commitments. Traditional models? They’re feeling the pressure to adapt. 2. Amenity Wars: Coworking spaces offer high-end perks—think coffee bars, wellness rooms, and networking events. Tenants now expect these experiences in every office building. 3. Hybrid Work Influence: With hybrid work here to stay, businesses need less fixed space but more collaboration-friendly environments. Enter coworking: a perfect fit. 4. Landlords Get Creative: Many are embracing coworking within their properties or partnering with operators to meet demand. Others are rethinking how they structure leases entirely. The Big Picture: Coworking is pushing traditional leasing into a new era, where flexibility, community, and experience drive decisions. Landlords, tenants, and brokers—how are you adapting to this shift? Let’s discuss! 

Whether with a chainsaw or a scalpel, efficiency is coming after the corporate real estate portfolio. But is that the full picture? For decades, corporate real estate was built on scale and control—bigger footprints, longer leases, more space than needed. But today, that model is under attack. Some CFOs are wielding a chainsaw, slashing footprints to cut costs. Others are using a scalpel, shifting from fixed leases to flexible, on-demand space. But if you think this is just about efficiency, you’re missing the bigger story. Power is shifting—from place to people. Spotify’s Times Square billboard said it loud and clear: "Our employees aren’t children. We will continue to work remotely." Allstate’s CEO didn’t just tweak their strategy—he eliminated their HQ.“A headquarters used to be the center of power. You came there to be seen and move up. We don’t have one of those anymore.” – Tom Wilson, CEO, Allstate This isn’t just a real estate shift—it’s a statement of values. Companies leading this transition aren’t just optimizing portfolios—they’re removing outdated constraints on talent and innovation. The Workplace Dividend: People Over Place ✅ The Cost Dividend – Cutting excess space and replacing it with intentional, flexible models can slash costs by 50-80%. ✅ The People Dividend – The most valuable real estate isn’t the office—it’s the people inside it. Companies that prioritize choice, trust, and intentional gathering win on engagement, productivity, and retention. “Treat employees as customers, treat them with respect, and they’ll come with you.” – Tom Wilson, CEO, Allstate T-Mobile gets it. They cut 80% of their real estate costs while expanding workspace choice 10X. For Business Leaders—Your Voice Is Shaping the Future The biggest workplace decisions ahead won’t be made by CRE teams alone. Business unit leaders, finance teams, and HR are stepping in—because the workplace is no longer just a cost center, it’s a talent strategy. The power of the office is being challenged. The power of people is being honored. So, what’s your strategy? Chainsaw or scalpel? Or possibly… carrot? Let’s discuss. #FutureofWork #HybridWork #WorkplaceStrategy #RTO #CommercialRealEstate