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Co-working office models are changing office financing, and not necessarily by choice. The popularity of co-working and flexible office leasing has forced lenders to develop new underwriting standards for these businesses. In some instances, co-working platforms, and the often household name clientele they attract, has a better credit than many smaller direct-lessees, and that can create a halo effect for office properties with co-working tenants.

“The way that buildings are financed is starting to change. Cap rates on office properties with co-working have a halo effect because that cash flow from a co-working operator is seen as high quality,” John Arenas, chairman and CEO of Serendipity Labs, tells GlobeSt.com. “It is a totally different situation than it was years ago.”

Kelsi Maree Borland

Kelsi Borland is a freelance writer and editor living whose work has appeared in such publications as Travel + Leisure, Angeleno and Riviera Orange County.

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