1. CoWork in a Box
A Turnkey Co-working Solution for Owners and Occupiers.

2. Co-working then…. Co-working now…
The Future…….
“Co-work in a Box” co-working spaces specifically designed, branded,
and controlled by landlords… for the benefit of landlords.

3. Co-working by the Numbers
• Co-working presently accounts for less than 1% of the 1.2B sf of US office space.
• Depending on the source, e.g., JLL/CBRE etc., it’s expected to grow from 12-17%.
• At minimum, creating a demand for over 100M sf of co-working space.
• A well designed co-working space can generate additional rent of $30-60 per sf.
The leading co-working brand is less then 5 years old and they seek to sign,
according to industry reports, 7-10 major deals a month. Presently they hold over
60% of the collaborative co-working market. With overwhelming demand and
waiting lists the norm at their new facilities.
And despite one his competitors planning over 200 new facilities, the CEO of this
leading firm when asked, who your biggest competition was replied, “landlords.”

4. Considering a co-working operation for your asset?
• Is a co-working operation right for your asset?
• Does the potential operator plans fit the assets tenant mix?
• How will affect tenant mix, amenity use, parking, building density?
• Is the decision based solely the potential for increased NOI?
• Are there logistical considerations; swing space/spec space benefits?
• Will it be used as a placeholder for expansions or possible right to relocates?
• Will the on-site staff manage all or part of the co-working operations?
• Are there other shared amenities to manager in coordination with the co-work space?

5. Independent Co-working Operations is not always
a Landlord’s best option.
• Added default risk due to undercapitalized/overly aggressive, unproven operators
• Minimal financial incentive for LL beyond base rent
• Significant increase in maintenance, security, and tenant calls
• Tenant mix issues or misalignment of independent co-work brand and property
• LL finances operator’s amenity space, with no benefit to building’s other tenants
• Benefit of co-work tenants that grow out of co-work space not passed on to LL
• Increased CAM expenditures as of increased density not recoverable
• Added parking and circulation issues due to co-work density
• Significant liability as a result of co-work activities; happy hours/beer parties
• Potential for crush of occupant/visitor traffic similar to a retail environment

6. Benefits of Landlord “Controlled” Co-working Space to
the Landlord.
• Significant Shared Revenue without any Management
• Provide for Expansion Space Requirements
• Home for “Right to Relocate” Tenants
• Temp home for tenants with new space construction delays/holdover tenants
• Temporary home for Right to Relocate tenants to capture loss to lease revenue
• Liberal, short term agreements with desk rentals that allow recapture/right to relocate
• Used as placeholder for expansions.
• Tool to clean up the stacking plan, consolidate smaller users.
• Retain full floor spaces for long term, growth orientated credit tenants.
• New high profile amenity spaces available to entire building
• Shared amenity management to increase revenue for additional Live/Work/Play amenities

7. Benefits of Tenant Controlled Co-working Space to
the Landlord
• Base Rent

8. Planning the Space
• Conduct Analysis on General Office
Vacancy, Shadow Supply, Subleases
Space, Co-working Supply, Planned
Facilities, Pricing, Absorption, Gross
Revenue Projections, Potential Demand
• Analyze Buildings Ability to
Accommodate Co-working Facility:
Zoning, Allowed Use, Increased Density,
Exiting, FLS, Parking, Increased Air
Flow Demand, Plumbing Fixtures
• Test Fit per Optimal Scenario as dictated
by Market Study: Layout of Private
Offices, Dedicated Desk, Shared Desk
and Layout and Density Limits per
Building Assessment, and Final
Construction
Design
Building Assessment
Feasibility Study

9. Final Design, Operating Pro Forma, Early Lease
Up and Space Reservation
• Produce Operating Pro Forma with
Expected Revenue, Stabilization,
Additional Amenity and Venue Revenue,
Build Out Costs, Onboarding of
Personnel, IT, Reservation and Back
Office Systems, and Ramp Up
• Final Approved Plan and Costs to Build
Out Approved and Submitted To
Governing Jurisdiction and Stakeholders
• Contract Award, Kick Off, Commence
Construction, Early Social Media and
Broker Outreach for Grand Opening
Construction Underway, Initial Social
Media and Broker Outreach, Grand
Opening Prep
Final Build Out and FF&E Costs Per
Final Plan
Operating Pro Forma

10. C of O, Grand Opening, Lease Up
• Construction Complete, FF&E Installed,
Operating Systems in Place, On-site
Personnel On-boarded, Facilities Stocked
and Ready for Opening Day
• Commence Final Push of Social Media,
Broker and Community Outreach to
Attend Grand Opening Festivities.
• Early Pro Forma Evaluation, Revenue,
Expenses, Additional Revenue,
Occupancy, Adjustments and Extra
Revenue Initiatives Put in Place
On Going Commissioning, KPI
Evaluation, Best Practices
Grand Opening
Construction Complete, FF&E
and IT Install, Lease Up