Total Square Feet4000
Office Occupancy100%
Desk Occupancy35%
Last 12 Months' Income$55,000
Last 12 Months' Expenses$72,000
Annual Net Profit$-17,000
Included Assets$60,000
Growth Trajectory Stable
Years in Operation1-2 years
Daily Operations Owner-managed
Neighborhood Rural
Remaining Time on Lease Lease 0-5 years

Business & Space Overview

The coworking space was launched in September 2020 after 6+ months of construction and design in a Class A facility. Equipped with a large conference room, 2 huddle rooms (converted into offices), 4 additional offices (medium and large) and an extra large team office. The facility is supported with blazing fast dedicated fibre optic internet and located on a major route in the town.

Q Business Highlights

The coworking facility was launched with support from the county economic development commission, town chamber and local university. As no other coworking facilities exist within a 2 hour radius and broadband internet access is spotty, the space has the ability to excel. Constructed in 2020 and custom designed with high end finishes in a modern / industrial appearance, the facility provides 24/7/365 secure access with keyfob and CCTV. The facility (4,000 sq feet) resides inside a Class A office building on a major through-fare of the town. Ample parking including underground (covered) is available - with shops and restaurants in walking distance.

Q Daily Operations

As the owner/operator of the space, I spend roughly 2 hours a week on answering inquiries and providing tours. The majority of members are long-term with relatively low turnover. We host conference room attendees (additional cost) and have seasonal drop-in guests (tourists).
Janitorial / cleaning is provided by an outside vendor.

Q Marketing

The majority of our business is by word of mouth / organic interactions. We have a social media presence on all platforms and have a small Google advertising budget. We have consulted digital marketing providers, but have not had the time or energy to pursue further.

Q Financials

When COVID hit, we were a brand new (just opened) company and we had to make a quick pivot to private offices. To date, all of our offices are at 100% long-term occupancy with key high-value firms. Our drop-in desks see seasonal variations generally peaking around summer (vacation) months. We have a handful of permanent desk (not office) users - but generally speaking the "open floor" space averages at 35% occupancy.
The local county economic development commission provides a quarterly subsidy to help offset the costs of operations.

Q Opportunities for Growth

Due to the time the owner spends on their primary career and the lack of experience in operating a coworking facility, it is believed that with small changes, the facility could become profitable. Private office memberships are priced below comparable offices and could be raised. Additionally, there are sufficient drop-in desks available to support doubling the current drop-in monthly income.

Q About the Seller

The coworking business was launched in 2020 out of a desire to create more economic development opportunities in the community. With a background in IT, the owner attempted to create a new technology hub and space for furthering careers in IT and attracting technical talent. Unfortunately, economic conditions and COVID-19 disrupted the ability for the space to take off.

Q Lease Assumption

The building owner (landlord) will allow the party taking over the space to assume the lease. The current monthly rate on the lease is below average retail as it was secured just prior to COVID-19.

Q Fixtures / Furniture / Equipment

The space will be provided turnkey and all fixtures, furniture, equipment, etc. will remain in the space. All of the offices are equipped with a sit/stand electric desk, chair, 24" IPS LED monitor and cabinet. All drop-in desks are equipped similarly less the cabinet. Printers, networking gear, keyfob (door access system) and CCTV will all remain. There is also a large projector screen (motorized) and several televisions / whiteboards / speakerphones.
Also included are the two phone (privacy) booths.

Notes from DenSwap: "This is a great neighborhood coworking community that would be great for a local company or entrepreneur that can focus on building the community."

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