Written by Nicholas Hein, Director at Nomad

Fifteen years ago, New York’s office leasing landscape looked very different. Tech startups were flocking from Silicon Valley to Silicon Alley, establishing an East Coast presence as giants like Google anchored themselves in Chelsea. At the same time, lean startups prioritized more than just product, they were building communities. WeWork rode this wave, redefining office space with flexible leases, all-inclusive billing, and hospitality-style amenities. Today, flexibility and high-touch service are still in demand, but the definition of “community” has shifted.

The Fish Bowl: 

Imagine spending your entire life trapped in a fishbowl, endlessly circling alongside the same familiar faces.

Wouldn’t you eventually struggle to find your own identity and sense of belonging? That’s the reality of the shared office environment. While there’s plenty to gain from being around the “big fish” as you grow, establishing your company in such a transparent, confined space can leave your company feeling indistinct. Companies are built on their culture, whether it’s fast and loud, slow and measured, or a work-hard, play-hard ethos. Without a strong, distinct culture, it’s hard to see what people are truly building.

The CEO of Idea Foundry recently stated, “People want to feel like they are a part of something”, with another agreeing “Culture is important because if you go somewhere and are surrounded by people, but still feel like you’re operating from a deserted island, it doesn’t do anyone much good.” The shared office offers extreme flexibility, but without a commitment to a specific company, employees begin committing to the space itself. Focus on employees should come before space flexibility. Brands and growing businesses need a defined identity. My team recently worked alongside a VC-backed startup, where the CEO and sales leaders remarked on their “fishbowl” feel. They mentioned that “as a company looking to revolutionize our industry, it’s crucial that we don’t blend into the crowd.”

Of course, some might view the fishbowl as a melting pot  of ideas and an opportunity to grow through new conversations and connections. In fact, real estate giant JLL noted that “Coworking spaces are getting people out of their homes.”

Office amenities are one of the hottest parts of the current market. Whether it’s an in-office golf simulator, rooftop bar, or tenant-exclusive gym, these amenities are at the forefront of priorities for companies. Shared spaces were the first to recognize and capitalize on this demand. But now, servicing and amenities are down. Why pay premium prices for yesterday’s bagel? Why pay premium prices for limited time in the conference room? “Offering pastries as compensation does not address the significant inconvenience and disruption caused.” This is no one-off message.

Companies Changing the Game

In the past two years, a new “shared office” industry has emerged. Think Knotel, a wave of New Generation shared office companies. This includes subleasing a conference room or leasing a company’s entire office at one all-inclusive rate. These companies have noticed the desire for fully furnished, private, and one-bill clients. With sky-high demand, we see New Gen’s charging a healthy 50 – 60% premium on their spaces.

These New Gen companies provide dedicated office space with a single base price, often marketing themselves as the solution for companies looking for privacy and a branded environment without the complications of long-term leases. They offer the convenience of shared offices but with the added benefit of a space tailored specifically to their needs. But is this a real alternative or just a more polished version of the same old model? “Research from JLL indicates that companies can save up to 25% in upfront costs by opting for furnished, all-inclusive office spaces. But imagine how much companies would save without the New Gen markup.

Paving a New Road

At Nomad, we’ve taken these trends, analyzed them, and devised a new approach. With partnerships across Manhattan and a portfolio representing over 2 million square feet of office space, our collaboration with tech-focused landlords is delivering real results. In recent months, we launched Flex by Nomad, a step towards tenant success. Our all-inclusive pricing model includes high-end furniture and a dedicated Office Success Manager that’s well worth paying for.

Average “New Gen” models and Flex by Nomad:

The “New Gen” Strategy:

• 50 – 60% Monthly Rent Markup
• Amazon Furniture
• Class C Buildings (Increases rental margin)
• 6 – 12 month license agreements (Big positive+)
• Low customer / tenant retention following initial term
• Non-Existent Customer Service

The Flex by Nomad Way:

• 25% Monthly Rent Markup
• Poppin, Branch, AIS, or even custom furniture
• Renovated Class B Buildings
• 1 – 3 year License Agreements (We provide a termination option!)
• High customer retention and growth
• Dedicated Success Professional (custom paint / signage, access control, and daily inquiries.)

Hampton was the first company to join our Flex by Nomad offering, and they made the most of it. Check out their space: Hampton: More Than an Office Space

“Nomad helped us create a space that feels like Hampton. It’s more than an office, it’s a home base for our community.” As a company that is deeply involved in reflecting community values and elevating brands, the Hampton team needed something special from the beginning. A community focused on building, the complications of an office didn’t present an effective ROI, but a premium space, that was just a pre-requisite. From the initial touchpoint to final to-do, Flex by Nomad offered and created a space that collaborated with Hampton. It’s not just a space designed to be re-sold, but a space where founders find comfort in building, a feeling only achievable when matched with a customer experience that treats a company’s success like their own.

Breaking out of the Fishbowl

While the inclusive shared office model was once seen as a flexible and affordable solution, the reality is that it no longer delivers the value many companies expect. The lack of privacy, branded space, and rising costs have left businesses searching for better options. Companies choosing the “New-Gen” shared office offer alternatives, but often with hidden markups and inflated pricing.

Flex by Nomad bridges that gap between hotel level hospitality and delivering a space that exceeds expectations. Every detail, every move, accounted for. Your vision takes shape exactly as intended.