Business & Space Overview
This is the perfect coworking space for a post-COVID world. It’s in a rich suburb of Denver with over 25 offices in just 7,500 SF. The lease rate is way below market and patios that look onto the Rocky Mountains. It is turn-key space that no longer fits the brand of the larger coworking chain that is focused on urban neighborhoods.
It’s already above break-even so every new office is pure profit at this point. It’s a great starter space for someone or a tuck-in space to an existing brand.
The space is poised to grow with the right brand in place that speaks to the suburban crowd. The build out is exactly what the post-COVID market wants and needs with over 25 one to three person offices. There is commercial grade HON furniture throughout the space so it's built to last and looks good.
There is opportunity to add 3 more offices in the center. We left it for more open gathering space because our brand is more traditional coworking heavy. Right now, the rents are below market and there is opportunity to raise them $50 to $100 a month, adding an additional $18,000 a year. Once the space is full with offices it will generate over $70 to $90,000 a year in pure profit.
What skills would be helpful to make the space more profitable?
I think the new owner should focus on marketing to the suburban market. The space has the right office density for the current trends and the commercial grade furniture make it stand out. Overall, the space looks good and is turn-key, but the marketing needs to speak to the audience. Right now, we are compromising on the message.
The space is operated by a part-time staff member and it is designed to be operated from afar easily. We designed the space to operate with a light touch, however it could have more hospitality that would allow rental rates to rise. From an owner perspective, the space runs smoothly.
Why is the owner selling?
I am selling the space because we our coworking brand is focused on urban neighborhoods. This was our attempt to expand into the suburbs, but our brand has not resonated in the suburbs as well as it has in downtown cores. We have done the hard work of building the business from nothing to making a slight profit, but we are ready to move on because it will do better with a different brand and team leading it.
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