Space as a Service: Are You Maximizing Every Square Foot?

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Unlocking Revenue from Vacant Office Space: How ‘Space as a Service’ is Transforming Commercial Real Estate

As office vacancy rates hover at historic highs—recent data shows nearly 20.1% nationwide, the highest since records began—commercial real estate (CRE) owners face unprecedented challenges. Yet within this crisis lies a lucrative opportunity: transforming idle or underutilized spaces into dynamic, revenue-generating assets through the model known as “Space as a Service” (SPaaS).

The Vacancy Challenge: A National Snapshot

In a post-pandemic landscape, hybrid and remote work trends have reshaped office dynamics, resulting in staggering vacancy rates. Cities like Boulder, Colorado, exemplify these shifts dramatically. Boulder boasts a work-from-home rate of 28.1%, significantly above the national average of 13.8%. Consequently, downtown Boulder’s office vacancy rate sits between 30% and 33%, a stark contrast to pre-pandemic levels of just 8%.

These dramatic shifts present landlords with a clear choice: adapt and innovate, or face prolonged underperformance.

The ROI of Flex: How SPaaS Converts Idle Space into Revenue

Landlords deploying flexible workspace solutions report compelling financial outcomes:

Higher Occupancy: Flexible spaces maintain occupancy rates around 80%, significantly outperforming traditional leasing models.
Premium Returns: Landlords adopting SPaaS see premium net returns up to 30% higher than traditional leases due to diversified income streams and value-added amenities.
Risk Diversification: Hosting multiple tenants reduces risk exposure compared to dependence on a single tenant, creating resilience and predictable cash flow.

Data reveals that flex space operators consistently achieve higher revenues per square foot compared to traditional leasing, turning underperforming assets into robust profit centers.

Emerging SPaaS Models: Matching Tenant Demand with Landlord Flexibility

Successful SPaaS implementations typically feature one or more of these models:

Coworking Spaces: Shared work environments with memberships, ideal for freelancers, startups, and hybrid workers seeking community and convenience.
Hot Desk Solutions: Flexible, unassigned desks that maximize space utilization, serving hybrid workers needing only intermittent workspace.
Private Flex Suites: Fully furnished, turnkey offices rented on short-term agreements, appealing to growing businesses in transition.
Hybrid Memberships: Packages offering workers access to multiple locations or part-time office use, perfect for companies adapting to hybrid work trends.

Boulder as a Case Study: Local Success and Adaptation

In Boulder, innovative landlords have capitalized on the SPaaS model with notable success:

Kiln Coworking on Pearl Street: A landlord partnered with Kiln, converting seven adjacent, underutilized buildings into a bustling 22,000-square-foot coworking hub. This adaptive reuse significantly boosted asset value and occupancy.
Industrious (Backed by CBRE): Established a thriving presence in Boulder, proving strong local demand for high-quality flex solutions, particularly among tech professionals and remote workers.

These examples illustrate how localized SPaaS solutions not only restore profitability but also invigorate commercial districts.

Benchmarking Against Industry Giants

Major CRE players recognize SPaaS as essential, integrating flex space into their portfolios:

CBRE & Industrious Partnership: CBRE’s strategic investment into Industrious underscores the industry’s pivot toward flexible models.
Boston Properties & Tishman Speyer: These landlords have developed proprietary flex brands, illustrating SPaaS’s mainstream viability.

Ground Control’s approach mirrors these successes, offering landlords tailored, white-label flex solutions that compete effectively with industry leaders.

Ground Control’s Value Proposition: Your Path to Revenue Innovation

Ground Control specializes in transforming underutilized office space into thriving flexible workspaces. Our turnkey, white-label model delivers:

Operational Excellence: Professional management, marketing, and seamless operations, eliminating landlord operational burdens.
Brand Alignment: Customized flex spaces that complement your property’s identity and target market.
Enhanced Asset Performance: Converting vacancies into vibrant, high-demand spaces, significantly boosting asset value and NOI.

The Future of CRE: Embracing the Flex Revolution

Experts forecast flex and coworking spaces will constitute 30% of all office space by 2030. For forward-looking landlords, embracing SPaaS isn’t merely strategic—it’s essential. Ground Control positions your property at the forefront of this evolution, unlocking profitability from spaces previously viewed as liabilities.

As market dynamics shift, those who transform vacant spaces into thriving flexible environments will dominate tomorrow’s CRE landscape.

Ready to convert your idle spaces into vibrant, revenue-generating assets? Contact Ground Control today to discuss how we can bring SPaaS innovation to your portfolio.