Last 12 Months' Income$520,000
Last 12 Months' Expenses$373,000
Annual Net Profit$147,000
Included Assets$100,000
Growth TrajectoryGrowing
Years in Operation5+ years
Daily Operations Staffed
Neighborhood Suburban
Remaining Time on LeaseLease 5+ years

Business & Space Overview

Pre-Covid profitable, this space has weathered the Covid downturn through a combination of loyal members, virtual service offerings and cost control. As we emerge from Covid, there is now huge upside opportunity to return the space to its former glory and beyond.

Highly desirable location in the retail core of suburban Walnut Creek (San Francisco East Bay Area). Historical membership comprised of business owners, entrepreneurs, freelancers and consultants. We are now beginning to see an influx of remote employees not eager to return to the San Francisco commute, but looking for alternatives to the home office.

Financial figures provided are based on 2019 pre-covid revenues. Full financials will be provided to an interested buyer. Landlord has shown a willingness to renegotiate current lease terms.

Q Business Highlights

We are the only local Coworking space driven primarily through memberships instead of dedicated private office rentals. That allows us to offer a more dynamic community experience at a more affordable price point than our competitors. Private space is available to members on-demand. Our smaller footprint means there is less overhead and upkeep, generating more profit with less risk.

Q Daily Operations

Operations are run effectively with a single staff member. Our Community Coordinator staffs the space M-F 8:30am-5:00pm to handle general upkeep and attend to member issues. As an owner/operator, I prefer to give sales tours personally, but the Community Coordinator is capable of backing up this role as well as administering walk-in tours and daily rentals.

Q Marketing

Pre-covid, we would spend approximately $2000/month on marketing in the form of targeted digital ads, search engine optimization (through a third-party firm), and membership in local business networking groups. As owner/operators, we have found it effective to build local referral relationships and employ grass roots marketing via Chambers of Commerce and similar channels. Opportunity likely exists to better refine current marketing efforts and improve returns.

Q FInancial

Covid has had a particularly detrimental impact on revenues. Without the benefit of long-term leases on private office space, we experienced a drop in revenues of 33% in 2020 compared to prior year and erosion has continued in 2021. Obviously, such a steep drop in revenue against our largest fixed cost of rent has resulted in loss of profitability. However, prior negotiations with the current landlord have resulted in some rent relief and landlord has shown a willingness to renegotiate current lease terms.

Q Opportunities for Growth

We anticipate considerable increased demand as California lifts Covid restrictions and fear of the virus wanes. Not only is there an opportunity to reach out to former community members, but expand considerably into remote employees with new flexibility to work remotely. Furthermore, we are seeing employers begin to fund the cost of alternative workspace for employees post-pandemic, creating a substantial new revenue source both via direct channels and third-party aggregators.

Q About the Seller

I started in business in 2007 providing highly personalized, locally-based, off-site telephone receptionist services. In 2012 we ventured into the shared workspace business in the suburbs at a time when this model was limited primarily to urban centers. We enjoyed success and in 2017 relocated to our current, larger space.

Having run the shared workspace for nearly a decade, as I approach semi-retirement, I plan to return to offering telephone reception as a stand-alone service which we now have the ability to do without being tied to a physical location.

It is my desire, however, to see the workspace continue on as a resource for our current clients and the Walnut Creek community at large. I am hopeful I can find a buyer to bring new passion and energy to returning the Coworking community to it's pre-covid vibrancy and continue the growth trajectory we were on before the pandemic.

Notes from DenSwap: "This coworking space is in a wealthy, walkable neighborhood. These types of spaces are seeing strong comebacks and are projected to have revenues 10 to 20% higher than before due to the rapid rise of remote work. This will be a nice tuck-in acquisition or safe starter space."

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