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Co-Working Offices

2,168 Views | 13 Replies | Last: 6 yr ago by Diggity
Diggity
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AG
The company I am interning with this Summer leased out two floors to a co-working space and it just opened. I have been tasked with learning as much as possible about this industry over the next few months. These things are a pretty new trend in Houston, and I know WeWork is opening soon in downtown.

We went to Austin to visit a few and they are all at 90%+ occupancy so seems like a good business model.

Any of you guys have any experience with working in one of these environments? I have enjoyed my time so far but I feel like the experience is much better when it's filled up like we witnessed in Austin.

I think this trend will continue to grow in areas where it makes sense. Just wanted to get everyone else's feel on it.
TennAg
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A partner and I bought some space and did the same. The income allowed us both a rent free office, covered the note/expenses but more importantly it was a fun place to work. The networking opportunities can be quite surprising as well.
Diggity
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AG
What area did you open in? How much space?
TennAg
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This was in the Nashville area a few years ago. It was a small setup, don't recall the sf but it held 6 decent size offices, an equally large conference room, kitchen, and a small sitting area.

The key for us was timing and location. We were in a booming area with a lot of residential nearby. All of our tenants were work at home types or one-man shop professionals who just wanted to office out of the house but with the same convenience. We were able to do an all-inclusive (cable/high speed/wifi) $5-550 per month and were never empty. I believe we had a rolling 3 month contract but it's been awhile.

I'd certainly do it again in favorable market conditions.

Edit: I said rent free above, but we expensed our two offices through our real jobs and let that flow through to the real estate partnership.
Diggity
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AG
very cool. I've suggested marketing to the neighborhoods around Westchase to pick up some leads as well.

I think sites like Nextdoor might be useful for filling these types of spaces with 'non-traditional" office clients.
TennAg
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I had a couple of those corrugated plastic signs made up and that was the extent to begin. Then it was easy with referrals from our tenants who wanted their buddy to come in or whatever. It was incredibly simple and the leasing out didn't add any paperwork or hassle other than depositing a handful of checks a month.

If you get into bigger spaces and add answering/reception/snacks/central copying/etc it wouldn't be near as care free but again it was just a side deal for us.
Diggity
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AG
yeah, we have about 60,000 sqft so it's going to take some work to fill this badboy up!
AgLA06
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AG
My old office had one of these executive suites / offices go in across the hall from us. It became a mess.

There was constantly new people parking in our reserved spots, randomly wondering the building, and it wasn't unusual for them to be of a less than professional appearance. I wouldn't have been surprised if a drug dealer or pimp worked out of there.

Other long term tenants began to leave and it just got worse. I couldn't tell you how it wound up because I changed jobs. I imagine a smaller one would be easier to manage or control.
Diggity
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AG
We're trying to price out the drug dealers and pimps... at least the lower level ones
Diggity
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AG
for some background, here's a couple articles about some new projects opening downtown:

WeWork Houston
DesignHive
lunchbox
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One thing to consider is that you may have people who work out of their home, but would like to be able to have access to a conference room only for interviews, important meetings, etc. Meeting up at the Starbucks nearby doesn't always work.
Diggity
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AG
That's a good point.

We offer virtual offices as well, where it's just a receptionist and a mailbox.

They're allowed to use the conference room for an hourly rate when needed. I believe even non-members can use the conference room/event space. They just have to pay a higher hourly rate.
Diggity
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AG
We were on Swamplot today...my life is officially complete!

TechSpace Houston



AgLA06
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AG
Cheater, you paid to be on Swamplot.


Just kidding, congrats! I hope it works out.
Diggity
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AG
well technically I didn't pay
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