https://commercialobserver.com/2018/08/industriou…
I have no idea what the benefit to this is and the mindset of this.
Thoughts?
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Let me caveat this by saying that I work in neither of these industries, but my this would be my best guess: From the mall owner's perspective, they are probably looking at benefits in two ways: tenant to fill space vacated by fail retailers and increased traffic to mall which will hopefully benefit sales and such. Coworking is probably the natural choice because these guys seem to be putting their vc dollars to work by gobbling up all of the tough-to-fill space in every A and B market. From the coworking operators perspective, malls offer a variety of amenities that aren't going to exist in many suburban office markets - retail, dining, and (often) main+main locations.
Edit: Also - coworking operators take and self-manage large chunks of space. This reduces the need for the mall owner to take on property management/leasing of a bunch of small/mid-sized office tenants. If you need to fill 50k SF and don't have 1 tenant to do it, adding multi-tenant office potentially creates significant managerial burden
Malls want co-working tenants because there aren't enough retail tenants in the market looking for big chunks of space. Also, suddenly dropping in a bunch of working professionals into a mall could help overall sales and retail tenant retention.
Co-working tenants want to be in malls because they want to be close to where people live, and malls typically are. They may also sense desperation on the part of mall owners and leverage that into favorable lease terms. Just a theory...
Everyone in my office thinks co-working is a bit over hyped for what it really is.
If you're a mall owner and someone offers you money to lease a space that will get people in there during the weekdays, would you say no?
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