How Smart Money Is Repositioning Office for Exit

Structuring Alignment into Every Deal

In our last DEEP DIVE, we explored how smart money is moving beyond traditional office leasing—and what’s driving that shift.

This article picks up where that one left off:
not with what to build, but how to structure it for performance and institutional exit.

Why Structure Now Defines the Strategy

As traditional leasing models drive friction and lose relevance in a changing office landscape, investors and operators are increasingly focused on how deals are structured, not just how space is delivered.

In many major markets, office demand has not disappeared, but shifted. Flexibility, service, and experience have emerged as core differentiators for occupiers. In response, a growing share of capital is moving toward hospitality-led office models—those built to operate, not just lease.

But adoption is no longer the issue. Structure is.

While there is general consensus that the future of office lies in operational execution, there remains significant uncertainty around how landlords and operators should align risk, income, and exit potential. The traditional lease no longer fits, yet few institutional frameworks exist to underwrite alternatives at scale.

This is where the next evolution of value will be determined:
not by the space alone, but by how the income, operations, and ownership are structured.

From leasing to alignment

The post-COVID market has made one thing clear:
flexibility is no longer optional.

Yet the dominant real estate structures were designed for stability, not adaptability. Many early operators, especially those in the coworking boom, signed long leases and absorbed lease liability in exchange for control. When demand collapsed, the flaws in that approach were exposed.

In the years since, a clear shift has occurred.

Leading platforms such as Industrious and Convene have adopted asset-light models, with operators earning fees or profit shares tied to performance, while landlords retain ownership and participate in upside. According to Industrious’s public statements and third-party reports, over 90 percent of its global locations are now under management agreements—including partnerships with Brookfield¹ and Kato International².

Management structures are increasingly seen as a tool for alignment. By linking operating income to actual performance, they reduce tenant covenant risk, improve transparency, and allow landlords to reposition assets without locking themselves into long-term fixed leases.

But alignment only works if the structure fits the strategy.
The key is not picking the “right model” universally—but selecting the right structure for the asset, the operator, and the capital behind it.

Understanding the options

Three core structuring models are now in circulation: