Every number with a pencil line under it is yours to change. Nothing here is fixed; the point is that your CFO can rebuild the whole page with your own figures and reach the same conclusion, or not.
Five layers, each with its own cost of delivery on the page. Rates are the Atmosphere base case for a 200,000 sqft site; replace them with your own market data.
| Revenue layer | $/sqft/yr | Cost % | Year 5 |
|---|---|---|---|
| Modular space + turnover Open Market · Market Hall — daily to yearly, not a 10-year lease | |||
| Back-of-house services Lighting, comms, connectivity, logistics — CAM as revenue | |||
| Media / DOOH PingPod™ · Fifth Signal™ — addressable, near-zero marginal cost | |||
| Live commerce + The Stage Commission on live selling, events, broadcast | |||
| Membership Built from traffic, not from $/sqft — see right | — | ||
| Gross revenue |
| Membership and building | Input | Year 5 |
|---|---|---|
| Annual visits | ||
| Visits that become paying members | ||
| Master tier, $/month Unlimited entry, free-house coffee, water, wifi | ||
| Retention applied | ||
| Members upgrading to Arcade | ||
| Arcade tier, $/month Serviced workspace, about half the Industrious price | ||
| Building opex, $/sqft/month Power, HVAC, internet, a 10–15 person team | ||
| Ramp to full run-rate Share of year-5 revenue reached in years 1–4 | % | |
Landlord income only. The lease line is what the rent roll would show; the ally line is the landlord's share of the floor's operating income, with the floor guarantee applied in the ramp years.
The doctrine is Industrious, not WeWork. The landlord stays the owner of the ground, signs a management or revenue-share agreement instead of a lease, and is paid from the floor's performance from day one. No long-duration rent obligation sits under the operating company, so the structure that broke WeWork is never built. The landlord's downside is capped by the floor guarantee; the upside is uncapped and rises with every layer the floor learns to earn.
Ramp applies to every revenue layer equally. Cost of delivery is a percentage of each layer's revenue; building opex is fixed per square foot. Landlord share is the greater of the agreed share of operating income and the floor guarantee. Operator share is operating income less the landlord share, before the operator's own overhead and before any PropCo / OpCo-TRS / MemberCo allocation.
All $/sqft values, percentages, multiples and dollar figures are rounded assumptions for illustration only and not a valuation, forecast or offer. The largest sensitivities are the visit-to-member conversion, retention, and the cost-of-delivery percentage on each layer. Base-case rates follow the Fifth Wall PE unit-economics assessment (casestudies.fifthwallpe.com); the landlord-as-partner structure follows the CBRE / Industrious precedent (Jan 2025), cited as reference only.