Companies do not want a long-term real estate commitment these days, so are experimenting with flexible office spaces instead.
Knotel CEO Amol Sarva says his company is capitalizing on the trend.
“We started this year with 100,000 square feet, we’ll finish with 700, and next year there will be several million square feet that we manage for owners,” Sarva said.
Sarva, a co-founder of Virgin Mobile, says long-term leases offer a brittle partnership. A sometimes-unstable real estate market can put companies in a bind, so renters are looking to shared office space providers like his, that offer flexible leases.
Knotel, a partner of Cheddar’s, is also opening a new office space in Brooklyn by the end of the year. Sarva points out that the properties are particularly attractive to start-ups. He says that leaders of growing companies do not want to limit themselves to a “box somewhere”.
“What we figured out early on was that co-working was kind of a clue, but the real opportunity was to run headquarters as a service; let people scale,” he said.
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