Andrew Runnette shares insights from a Thesis Driven piece by Paul Stanton: "GP Studios" made up of ex-Blackstone and Starwood execs are backing niche operators with co-GP capital targeting 4 to 10x returns, with cowarehousing making the list.

The shift means the operating company itself is now the investment, not just the building. But the weak spot for operators is missing back-office infrastructure like SOPs and reporting systems, so building that layer now is key to winning capital.

Paul Stanton from boutique investment bank PTB explores how flexible workspace is establishing itself as a standalone real estate asset class as family offices capitalize on arbitrage opportunities that traditional lenders struggle to underwrite.

The Dart family office’s acquisition of two Financial District buildings totaling 1.5M SF for approximately $200/SF (previously trading above $1,000/SF for Class A) demonstrates the scale of opportunity, with the WSA-branded conversion offering 200-400 SF flexible offices targeting $300/SF rents that could generate 20% unlevered yield on $500M total project costs. Family offices are taking patient, long-term positions in flexible office conversions while institutional investors remain sidelined due to unproven market depth, limited operating data, and lender underwriting challenges.

The trend extends beyond mega-deals to smaller Class B office conversions, with observers noting flexible workspace operators can command significantly higher per-square-foot rents than traditional office leases when bundling space with extensive amenities and services.

Real estate expert Paul Stanton shares his take on how OpCo-PropCo structures depend on track record, asset class maturity, check size requirements, and capital source preferences, ranging from fee-light partnerships to fully integrated platforms.

For flexible workspace operators, this highlights how different capital structures can unlock yield enhancement and scalable funding based on individual operator profiles and real estate experience levels.

A LinkedIn post shared by Paul Stanton has some great observations and makes a great point for workspace operators. Equinox’s evolution from gym to luxury real estate illustrates a powerful model for flexible workspace operators to create higher-value businesses. By prioritizing emotional connection and community over physical space alone, coworking brands can transform from commodity office providers into lifestyle companies commanding premium prices. This strategy involves first establishing a distinctive feeling and community, then monetizing that loyalty through enhanced offerings, and finally separating brand operations from real estate ownership.

Workspace operators who embrace this approach can potentially escape price-per-square-foot comparisons and instead drive value through brand strength, programming that reduces turnover, and a sense of belonging that transcends location.

Miro Miroslavov from OfficeRnD and Paul Stanton from Proptech Bankers put together a (longer) read on how asset managers can leverage flexibility & tech to drive more revenue into their buildings.

Mentioned are lulafit, OfficeRnD, Valve, Syncaroo, LiquidSpace, PilotoMail, HqO, VTS Rise, Equiem, Brivo, Kisi, Sharry, SwiftConnect, essensys, IronWiFI, isofy and others. A useful list for both indie operators and landlords exploring/implementing flex if you ask me.