This is a small and stable coworking space in a densely populated neighborhood in the coworking hot-bed city of Denver. This location runs mostly unstaffed, a visit once a week, inside a well managed and maintained office building with nightly cleaning.

It has been revamped in the last 7 months to generate an additional $1,200 a month with an additional offices and amenities.

The favorable lease for the space has allowed me to keep the prices low for members, while retaining strong cash flow. This will be a great coworking space for someone that is looking to seed a larger space in the neighborhood, learn the skills of running a coworking space, or a company that wants to have an office inside a coworking space and make a profit.

At a glance

Last 12 Months' Income$70,123
Last 12 Months' Expenses$56,701
Annual Net Profit$13,422
Included Assets$11,000
Growth Trajectory Stable
Years in Operation5+ years
Daily Operations Owner-managed
Neighborhood Urban
Remaining Time on Lease Lease 0-5 years
Q Business Highlights

The space has been been around for over 6 years and has a proven track record of profits and revenue. The space has been updated in the last 12 months to give it a more modern design with bright colors and wall paper to stay competitive in the market. This is a turn-key space.

In late 2018 we converted unused space into additional offices and a self-run podcasting studio. The podcasting studio could easily be converted back into an office, but it has proven to generate 40% more revenue than an office, and the revenue is growing month over month. These changes are on track to push revenue over $80,000 in 2019 without additional monthly expenses.

The membership base is stable and with the right attention, prices could be raised over time.

Q Daily Operations

This a self-sufficient space and I check in on it once a week for about half an hour. The nightly cleaning in the lease keeps the place tidy without much intervention.

If the new owner was to be more involved then they could increase revenue with more conference room bookings, increased community engagement to drive hot desking memberships, and host more events.

Q Marketing

We only spend around $500 a year, less than $40 a month, on paid marketing. We rely mostly on website traffic and online listings.

If we spent more when offices would become available then we could reduce our vacancy rate for each office by a few weeks.

Q Financials

Our expenses are stable with a predictable, favorable full-gross lease. The only additional expenses are internet, coffee, and a small reepair fund for furniture.

Our trailing 12 month revenue has stable with an profit ranging from $1200 to $1500 a month.

In 2019 we converted the space to be more profitable with a podcasting studio and an additional office. Now that the podcasting studio is gaining traction, we have increased that room from generate $500 a year to a an expected $8,400. The unused space converted into an office is already generate $500 more a month, for an additional $6,000 a year.

We expect profits in 2019 to be closer to $20,000 a year and then be $24,000 in 2020.

Q Opportunities for Growth

There is a lot of potential for this space within our lease or to expand into additional units within the building. This is also a good starter space for someone that wants to eventually grow into a more profitable larger space in the neighborhood.

Opportunities within the space:
The most immediate opportunities with the space is to build out two more additional offices, which are much more in demand. You could also add an additional big office just by adding glass in the under used permanent desk area, generating an additional $10,800 a year in revenue.
There is currently a permanent desk member paying $250 that I have been nice to move to convert the entire area into a much higher paying office member.

Building Owners:
If you own a building in the Capitol Hill neighborhood then this would be a great opportunity to start your coworking brand before converting your owned property into a coworking space. This will help launch your newer and bigger space with momentum of an existing community.

Small Business looking Not to Pay Rent
A small team up to 15 people could easily self-manage the space and take over a few offices. You'll not only be part of a an active coworking community, but you'll also save on not paying rent.

Q About the Seller

I started this location in 2014 as an expansion of my coworking brand. I love coworking and this additional location help stabilize my income with additional offices, which is what people want in today's market.

I love coworking, and I started spaces to help create community for individuals that could work from anywhere. I believe it betters people's lives.

Q Brand not included - but we'll work with you

The brand is not included with the space, but we will work with you to slowly convert the space into the new brand or develop a partnership for up to a year. This will help you keep the sales funnel going through SEO and other lead generation tools.

We don't expect this to effect the sales.

Asking Price $72,000 5.4x multiple

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