This article originally appeared in Reuters on June 20, 2018
NEW YORK (Reuters) - Blackstone’s Equity Office, a large U.S. owner of office space, said on Wednesday it will offer flexible leasing and workspace in a deal with co-working operator Industrious that promises further ties if a joint effort in Los Angeles proves successful. Chicago-based Equity Office also said it was adopting the name EQ Office as it embraces the growing popularity of flex workspace at the six-building Howard Hughes Center in West Los Angeles, which is under renovation.
Commercial real estate needs to respond to the consumer of a lease and not solely a company’s leaders, EQ President and Chief Executive Lisa Picard told Reuters.
“We are marketing to the talent,” Picard said, referring to the industry belief that a better work site and amenities will attract the best personnel. Flexible workspace size and lease term are other important features.
“Not giving a tenant flexibility is costing us more money, so a tenant knows that,” she said about traditional leasing. “If they can get rid of flexibility, they can get a really inexpensive deal. If they want flexibility it costs them more.”
The deal highlights the growing acceptance of flexible workspace and represents a major change for EQ, a portfolio of 86 properties with more than 42 million square feet of Class A office space that is owned by Blackstone real estate funds.
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