I’ve been a long time lurker on the list, and have been constantly inspired by the frank dialog on and reading the challenges we all face running our spaces.
A little background: My co-founder and I started a small design office, called Greater Good Studio 3 years ago and after a period of running the business from our bedroom, we needed a space to collaborate with our team and clients. We came across our current building and started renting from our landlord just over a year now. And in a dual effort to offset our overhead as well as grow a studio culture, we opened our coworking space called The Logan Share. Our focus has simply to make it the most distraction-free coworking space in Chicago.
Our current situation: We have 9 months left of our current lease and we fully expect to sign on for 5 more years. We have been very fortunate and in the last 15 months grown from just 1 renter to now 24 renters, covering all all our overheads and making a little on the side.
My questions and concerns: Has anyone had any experience with their building, that they run their coworking space from, sold out from under them? Is buying the building outright the only way to prevent this from happening to us? Were there any signs this was going to happen beforehand that we should look out for? Is there language we should include in our lease to prevent/delay/help us so it doesn’t happen?
If anyone have experience or advice in this area, I would greatly appreciate it.
Thanks!
George
[The Logan Share](http://the most distraction-free coworking space in Chicago)
We went through this situation at HiVE Vancouver. Nothing bad happened except for our landlord changed. Do you have a concern that they’ll force you out of the space? I’m sure the building was sold with you factored into it. No one wants to buy a building without a revenue stream. You’re the revenue stream for the building.
As a leasee, you don’t really have any power in this relationship beyond threatening to leave the building and forcing them to lose revenue while they try to find another tenant.
I think the only potential problem on your horizon is re-negotiating your lease when your current lease is up. Depending on how much the new owner paid for the building, they may want to jack up your rent. I would advise going into that negotiation with some other properties in mind that you could move to so that it’s clear to the new owner that you will walk if the terms aren’t favourable. The new owner most likely won’t want you to leave and bought the building assuming that you’ll be a long-term tenant.
TL,DR: Unless you have heard something indicating that they’re going to throw you out, all you need to do is start prepping for your lease negotiations in nine months.
On Wed, Aug 13, 2014 at 9:10 AM, George Aye [email protected] wrote:
Dear Coworking folks,
I’ve been a long time lurker on the list, and have been constantly inspired by the frank dialog on and reading the challenges we all face running our spaces.
A little background: My co-founder and I started a small design office, called Greater Good Studio 3 years ago and after a period of running the business from our bedroom, we needed a space to collaborate with our team and clients. We came across our current building and started renting from our landlord just over a year now. And in a dual effort to offset our overhead as well as grow a studio culture, we opened our coworking space called The Logan Share. Our focus has simply to make it the most distraction-free coworking space in Chicago.
Our current situation: We have 9 months left of our current lease and we fully expect to sign on for 5 more years. We have been very fortunate and in the last 15 months grown from just 1 renter to now 24 renters, covering all all our overheads and making a little on the side.
My questions and concerns: Has anyone had any experience with their building, that they run their coworking space from, sold out from under them? Is buying the building outright the only way to prevent this from happening to us? Were there any signs this was going to happen beforehand that we should look out for? Is there language we should include in our lease to prevent/delay/help us so it doesn’t happen?
If anyone have experience or advice in this area, I would greatly appreciate it.
There’s no imminent signs as of right now, but it’s a general lurking fear I have. I’m curious to know if there could have been any new language in your lease that might have given you any kinds of protection re: rent increase etc. If none of it would be binding, then so it goes, but I wonder how to put us in the strong position if this even happens.
Cheers,
George
···
On Wednesday, August 13, 2014 1:55:15 PM UTC-5, Aaron Cruikshank wrote:
Hi George,
We went through this situation at HiVE Vancouver. Nothing bad happened except for our landlord changed. Do you have a concern that they’ll force you out of the space? I’m sure the building was sold with you factored into it. No one wants to buy a building without a revenue stream. You’re the revenue stream for the building.
As a leasee, you don’t really have any power in this relationship beyond threatening to leave the building and forcing them to lose revenue while they try to find another tenant.
I think the only potential problem on your horizon is re-negotiating your lease when your current lease is up. Depending on how much the new owner paid for the building, they may want to jack up your rent. I would advise going into that negotiation with some other properties in mind that you could move to so that it’s clear to the new owner that you will walk if the terms aren’t favourable. The new owner most likely won’t want you to leave and bought the building assuming that you’ll be a long-term tenant.
TL,DR: Unless you have heard something indicating that they’re going to throw you out, all you need to do is start prepping for your lease negotiations in nine months.
On Wed, Aug 13, 2014 at 9:10 AM, George Aye [email protected] wrote:
Dear Coworking folks,
I’ve been a long time lurker on the list, and have been constantly inspired by the frank dialog on and reading the challenges we all face running our spaces.
A little background: My co-founder and I started a small design office, called Greater Good Studio 3 years ago and after a period of running the business from our bedroom, we needed a space to collaborate with our team and clients. We came across our current building and started renting from our landlord just over a year now. And in a dual effort to offset our overhead as well as grow a studio culture, we opened our coworking space called The Logan Share. Our focus has simply to make it the most distraction-free coworking space in Chicago.
Our current situation: We have 9 months left of our current lease and we fully expect to sign on for 5 more years. We have been very fortunate and in the last 15 months grown from just 1 renter to now 24 renters, covering all all our overheads and making a little on the side.
My questions and concerns: Has anyone had any experience with their building, that they run their coworking space from, sold out from under them? Is buying the building outright the only way to prevent this from happening to us? Were there any signs this was going to happen beforehand that we should look out for? Is there language we should include in our lease to prevent/delay/help us so it doesn’t happen?
If anyone have experience or advice in this area, I would greatly appreciate it.
The only protection is if you had agreed to have an option to renewal.
[another reason to use a broker, if you didn’t…very standard to have this option] JEROME CHANG
Mid-Wilshire
5405 Wilshire Blvd (2 blocks west of La Brea) | Los Angeles CA 90036
ph: (323) 330-9505
Downtown
529 S. Broadway, Suite 4000 (@Pershing Square) | Los Angeles CA 90013
ph: (213) 550-2235
Santa Monica
1450 2nd Street (@Broadway) | Santa Monica CA 90405
ph: (310) 526-2255
There’s no imminent signs as of right now, but it’s a general lurking fear I have. I’m curious to know if there could have been any new language in your lease that might have given you any kinds of protection re: rent increase etc. If none of it would be binding, then so it goes, but I wonder how to put us in the strong position if this even happens.
Cheers,
George
On Wednesday, August 13, 2014 1:55:15 PM UTC-5, Aaron Cruikshank wrote:
Hi George,
We went through this situation at HiVE Vancouver. Nothing bad happened except for our landlord changed. Do you have a concern that they’ll force you out of the space? I’m sure the building was sold with you factored into it. No one wants to buy a building without a revenue stream. You’re the revenue stream for the building.
As a leasee, you don’t really have any power in this relationship beyond threatening to leave the building and forcing them to lose revenue while they try to find another tenant.
I think the only potential problem on your horizon is re-negotiating your lease when your current lease is up. Depending on how much the new owner paid for the building, they may want to jack up your rent. I would advise going into that negotiation with some other properties in mind that you could move to so that it’s clear to the new owner that you will walk if the terms aren’t favourable. The new owner most likely won’t want you to leave and bought the building assuming that you’ll be a long-term tenant.
TL,DR: Unless you have heard something indicating that they’re going to throw you out, all you need to do is start prepping for your lease negotiations in nine months.
On Wed, Aug 13, 2014 at 9:10 AM, George Aye [email protected] wrote:
Dear Coworking folks,
I’ve been a long time lurker on the list, and have been constantly inspired by the frank dialog on and reading the challenges we all face running our spaces.
A little background: My co-founder and I started a small design office, called Greater Good Studio 3 years ago and after a period of running the business from our bedroom, we needed a space to collaborate with our team and clients. We came across our current building and started renting from our landlord just over a year now. And in a dual effort to offset our overhead as well as grow a studio culture, we opened our coworking space called The Logan Share. Our focus has simply to make it the most distraction-free coworking space in Chicago.
Our current situation: We have 9 months left of our current lease and we fully expect to sign on for 5 more years. We have been very fortunate and in the last 15 months grown from just 1 renter to now 24 renters, covering all all our overheads and making a little on the side.
My questions and concerns: Has anyone had any experience with their building, that they run their coworking space from, sold out from under them? Is buying the building outright the only way to prevent this from happening to us? Were there any signs this was going to happen beforehand that we should look out for? Is there language we should include in our lease to prevent/delay/help us so it doesn’t happen?
If anyone have experience or advice in this area, I would greatly appreciate it.
