Why Traditional Lease Thinking Is Holding Back Office Returns

Structuring Flex Correctly Is the Superpower Behind Higher Returns

It’s Time To Evolve

At a recent industry event, a landlord made a simple but revealing statement when asked about the role of flex space in his portfolio:

“I’m in the business of long leases. My business plan requires 80 to 90 percent of the building generating income on long leases.”

That comment reflects how many institutional owners have historically approached office underwriting. Long leases provide predictability, financing stability, and valuation support. For decades, that formula worked.

But in today’s market, that model is quietly being tested.