Blog

In early June I had the opportunity to join Caleb Parker for a special episode of his podcast the Caleb Parker Show. We covered a wide range of topics, including the future of financing, valuations and the potential shift towards permanent capital in office real estate. We also chatted about my experience as a landlord, shifting from traditional office to Space-as-a-Service and the challenges with valuing and financing flex properties.

Very few industries offer investors 20x multiples on earnings. Software is able to achieve high multiples through high levels of earnings growth, while real estate has offered investors bond-like safety. Office investors are currently facing a double headwind–not only has the Risk Free Rate increased, but market sentiment has also moved against offices. In order to stay in the 20x club, we need to re-look at what levers are available to us.

Like plane flights, rental space is a perishable good–potential revenue lost forever and impossible to recapture. A deeper look at the cost of vacancy and speculative suites.

Office landlords are at risk of being squeezed. Tenants are demanding short-term, flexible leases but landlords are stuck in an ecosystem that demands long-term leases. It's a tough spot–but here is one way savvy landlords can still profit.