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A balancing act: Getting management agreements right in the flexible office market
- March 1, 2024: Vol. 18, Number 3

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A balancing act: Getting management agreements right in the flexible office market

by Calum Russell

Recent data from Savills into the UK flexible office market shows that in the first half of 2023 up to 43 percent of deals were management agreements. It is clear the growth of the flex office market, coupled with the desire to improve returns from their assets, has encouraged landlords to consider alternative options to traditional leasehold agreements.

As a result, perceptions are changing and management agreements are growing in popularity — marking new contractual ground for many commercial real estate landlords. This trend shows no sign of slowing, as landlords start to gain a better understanding of the potential benefits of entering into a management agreement. The growth of “flex” as a key pillar of the office market means that operators and landlords need to ensure that management agreements cater to the needs of all parties, delivering both on the short- and long-term business objectives to support growth of the market.

What’s the appeal?

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