Define Community and Boost Revenue in Shared/Flexible Leases

The landscape of urban development is shifting, driven by a need to creatively repurpose existing buildings, structures, and land to better serve local builders, entrepreneurs, and creators. Traditional commercial properties are being reimagined into dynamic spaces where communities and small businesses can grow together. To boost revenue in shared or flexible leases, property owners must adapt, finding innovative ways to revitalize their assets and bring in tenants who value both affordability and community-driven collaboration.

This shift benefits not just property owners but the entire local economy by turning underutilized properties into vibrant hubs of activity that foster growth and innovation. The focus is on creating opportunities for those who need low-cost office or warehouse space to establish and scale their business alongside others doing the same. Below, we explore best practices for enhancing revenue through shared leases and fostering a thriving community.

Creative Repurposing for Shared and Flexible Leases Long-term commercial leases, while beneficial for stability, often fail to meet the needs of emerging entrepreneurs and small businesses who need flexibility. Underutilized properties—such as office suites, warehouses, or old industrial buildings—represent a unique opportunity to boost revenue by transforming them into shared and adaptable spaces that serve a broad range of community needs.

By focusing on mid-term leases and shared occupancy, landlords can ensure their properties stay full while supporting the growth of local businesses. Entrepreneurs, small-scale manufacturers, and creatives thrive when they have access to adaptable, affordable environments that allow them to expand or downsize as needed.

Creating a Thriving Community: 5 Best Practices for Shared Spaces To maximize utilization and boost revenue through shared or flexible leases, property owners must rethink their approach, ensuring their spaces support community growth and innovation. Here are five best practices to create a thriving community through shared leases:

1. Choose Your Target Community Identifying a target community is crucial to creating a successful space. Who is your ideal tenant? Local builders, craftspeople, entrepreneurs, creative professionals, or startups? By understanding their needs, you can tailor the space to meet those demands effectively. For example, a community of small manufacturers may need flexible warehouse and production space, while a community of creatives may be more interested in shared studios and common areas for collaboration.

Choosing the right target community will help you customize the space to attract tenants who are looking for exactly what you’re offering—be it a shared workshop, a collaborative office, or an industrial warehouse. This specificity builds loyalty and keeps your space occupied.

2. Find an Anchor Tenant An anchor tenant provides a steady, reliable income that helps stabilize your shared property. In a traditional mall, an anchor tenant might be a large retailer, but in a repurposed commercial property, it could be a maker collective, a cowarehouse operator, or an established local business. This anchor tenant draws other small businesses that benefit from the traffic or credibility provided by the anchor.

Anchor tenants are especially valuable for providing a sense of community stability—knowing that an anchor business is invested in the space can make it more appealing for others who are just starting out.

3. Curate a Theme for Your Space Shared spaces benefit greatly from having a cohesive theme or identity. Themed environments make properties more inviting and give potential tenants a reason to choose your space over a more generic competitor. The theme can be related to local craftsmanship, sustainable production, creativity, or community innovation.

For example, a focus on sustainability could involve incorporating energy-efficient lighting, using recycled materials for renovations, and providing educational workshops on eco-friendly practices. A space for photo and video studios might include shared equipment, flexible backdrop setups, and communal editing suites, while an IT management-focused space could feature advanced networking infrastructure, dedicated server rooms, and collaborative areas for troubleshooting and client meetings. By curating a specific theme, you create a narrative that resonates with tenants who value that vision, ultimately fostering a sense of community, loyalty, and shared purpose.

4. Foster Interaction and Collaboration One of the most significant advantages of shared spaces is their potential for collaboration. To foster this environment, it is essential to design spaces that encourage interaction and networking. Common areas like shared kitchens, lounges, and workshops become hubs where people meet, talk, and share ideas. Adding communal amenities—such as a tool library for builders or an event space for creators—further enhances these interactions.

Encouraging collaboration not only makes the space more vibrant but also boosts economic development by allowing different businesses to inspire each other, collaborate on projects, and create new opportunities that benefit both the tenants and the wider community.

5. Offer Flexible Leasing Arrangements To truly support entrepreneurs and small businesses, it’s crucial to offer flexible leasing arrangements. The ability to adapt to tenants' changing needs—whether they need more space to grow, or want a temporary setup to test a new project—ensures that they can thrive without the burden of long-term commitments.

Mid-term leases (30 days or more) are highly recommended as they provide essential flexibility for both business owners and landlords. For business owners, they offer the opportunity to move into a non-committing space that allows them to grow and build their business without a long-term obligation. For landlords, mid-term leases enable the ability to attract and uplevel tenants, maintain market-rate pricing, and effectively manage the community dynamic. Typically, most established businesses that commit to an initial 30-day lease tend to stay for 6 to 24 months or more, creating a stable environment while preserving flexibility.

Targeting Different Types of Communities To boost utilization and revenue, property owners should consider targeting diverse communities that can repurpose and activate these spaces:

• Local Makers and Small Manufacturers: These businesses need low-cost, flexible workshop and production areas where they can manufacture, store, and distribute goods. By repurposing warehouses into maker spaces, you can attract small manufacturers who need affordable, adaptable environments.

• Artists and Creatives: Artists need flexible studio spaces that allow for a variety of creative practices, from painting to multimedia installations. Shared studios, art galleries, and community workshops create a creative hub that draws in not only tenants but also the wider community.

• Photo/Video Studios: Photographers and videographers need access to specialized spaces that allow for diverse projects. Providing shared equipment, adaptable backdrop areas, and communal editing suites makes the space ideal for media professionals who need flexibility.

• Boutiques and Event Spaces: Repurposing parts of your property into boutique retail spaces and event venues can draw in tenants looking to engage directly with the local community. These spaces are perfect for small retail businesses looking to create a unique, customer-focused experience, or for hosting community events, pop-ups, and gatherings.

• Entrepreneurs and Startups: New businesses need adaptable environments that offer them a professional presence without the financial commitment of a long-term lease. By providing flexible office space with shared meeting rooms and event areas, you can appeal to entrepreneurs who need room to grow at their own pace.

• Nonprofits and Community Initiatives: Nonprofits often require flexible office and meeting space that fits within their tight budgets. Offering discounted leases or shared workspaces for community initiatives can fill empty suites while contributing to the overall well-being of the neighborhood.

• Wellness and Health Practitioners: Transforming part of the property into wellness studios, such as yoga studios, therapy rooms, or health clinics, can cater to the growing wellness industry. These spaces are ideal for independent practitioners who need space for classes or treatments without a long-term commitment.

• Hair Salons and Beauty Studios: Beauty professionals often require small, private spaces that allow them to offer treatments to clients without the financial strain of traditional lease commitments. Shared beauty studios or hair salons that provide individual booths or rooms can attract stylists and practitioners looking for flexibility.

• Shared Warehouses and Commissary Kitchens: For small-scale producers or food entrepreneurs, shared warehouses and commissary kitchens offer cost-effective, adaptable spaces for production, storage, and prep. This model allows for shared resources and creates a collaborative environment for food-related businesses.

• Developers and Makers: Tech developers, hardware engineers, and product makers thrive in collaborative spaces with access to shared tools, prototyping equipment, and open workbenches. By offering flexible, well-equipped environments, you can support innovation and attract a diverse community of product-focused creators.

Economic Impact and Community Revitalization Revitalizing underused spaces to serve the needs of different community groups is not only a way to boost revenue but also a means of contributing to local economic growth. Shared spaces drive activity, support local businesses, and create opportunities for interaction and innovation. Instead of vacant properties that create dead zones in urban areas, these revitalized spaces generate foot traffic, increase the value of surrounding properties, and spur economic development by attracting and retaining talent.

By embracing flexible leases, building vibrant communities, and fostering a culture of collaboration, property owners have the chance to make a meaningful impact on their local economies. This isn’t just about filling space; it’s about transforming it into a place where people want to be—a place where ideas flourish, businesses grow, and communities thrive.

The future of commercial property is not just about occupancy—it's about impact. By repurposing existing buildings, targeting local creators and small businesses, and encouraging shared use and collaboration, property owners can boost revenue while creating environments that are truly part of their communities. Together, we can reimagine these spaces not just as buildings, but as engines of growth, creativity, and opportunity.