- For REITs/Funds
Central Business District Denver, CODemand 200K sfSupply 163K sfRecommendation High-end Modern FlexSunnyside / Highlands Denver, CODemand 80K sfSupply 63K sfRecommendation Executive SuitesCommerce City Denver, CODemand 1.5K sfSupply 0K sfRecommendation Do not Invest
DenSwap's Flex Intelligence Platform translates our proprietary data and real-world coworking experience into insights and actionable strategies that help our clients realize the full potential of their commercial real estate. Stay up-to-date with client demand and capture the upside of flex space throughout your CRE portfolio, then follow up with the go-to-market strategy to win & retain the right tenants.
- For Building Owners
Are you considering transforming your commercial property into a flexible coworking space? Our feasibility reports can provide you with the insight you need to make a confident investment decision. Our team of experts utilizes market data APIs, proprietary information on coworking spaces, and unique consulting expertise to assess whether a given building is suited for a successful flex/coworking business.
- For Flex Operators
Are you considering opening a new coworking space? DenSwap's Demand Analysis Report is a quick validation tool so you can move forward or back off on potential plans. You give us a zip code, and we'll outline the general demographics of the area as they relate to coworking. You'll get a good estimate of how many potential customers are in your area, how many square feet the region can support, and what type of buildout and business model we'd recommend.
- For Building Owners
Business & Space Overview
This coworking is where Chicago’s creatives come to thrive- a coworking space that blurs the lines between art and work, and never stops evolving. Open day and night, we’re home to artists, makers, and passionate folks seeking inspiration and genuine community.
It’s currently operating at slightly profitable as a side-business. The opportunity to increase profitability to $40,000 to $50,000 is straight forward by increase sweetheart deals for a few offices, leveraging mail service that’s growing, and signing a new lease at a lower market-rate rent.
Our space is thoughtfully designed for both function (automated 24/7 access to desks, offices, and meeting rooms) and creativity (artist-in-residence programming, curated events, and lively conversation). Membership means more than a desk- it’s access to resources and a community that keeps you inspired, inside and outside our walls.
Currently, the coworking space is owned by three equal partners, including the building owner, who’s open to selling their share or partnering with a new operator. The business is profitable, fully occupied, with plenty of room to grow- think a dozen hot desks, a conference room for 10, a phone booth, and 7 private offices. There’s upside in the neighborhood, and opportunity to increase rent, especially in the largest unit. There’s also another unit in the building that is available that has been a successful event space in the past.
Our beloved Community Manager keeps the vibe alive and would consider going full-time. Our coworking space is ready for new ownership- someone who can give it the attention and care it deserves to reach its full potential.
Highlights
This coworking space is a really special, beautiful space in an upcoming part of Chicago. It's in a very industrial building. The building has many creative businesses and is located near an increasing number of restaurants and residential apartments. It's also convenient to United Center which is undertaking a massive development over the coming decade and the Damen train line has recently opened which puts it very convenient to multiple train lines and bus stops. Our occupancy rate for private office is 100% with a waiting list, and there is an opportunity to expand to another space and create our event revenue which has been proven in the past by a past event operator in the building.
Daily Operations
The space is very low maintenance. Our fantastic Community Manager works approximately 20 hours a week Monday through Thursday. All of our spaces have electronic locks on the door so users can access the space 24/7 as long as they're given credentials through the system. Today we use Optix for our cowworking management software which has worked effectively for us.
Marketing
The space is at full capacity in terms of offices and almost all of our communal desks. This is with absolutely no marketing spend and we're located on all of the marketplaces, have a wait list for our offices, and use local marketing tactics to try to grow operations.
Financials
Over the last three months, the space has brought in a bit over $12,000 in revenue. There’s a clear opportunity to boost monthly income by $2,000–$3,000 simply by adjusting rent to market rates. Current rent is $8,100 (which includes past due rent for COVID abatement), while other expenses average $5,000 per month. With a new agreement, rent could be renegotiated to a lower price or shifted to a more traditional management structure- giving a new owner flexibility and potential for greater profitability.
Opportunities for growth
There are a few levers that could quickly increase profit in the space:
1. Replacing our biggest tenant with a up-to-date price, which would increase rent at least $2000.
2. General rent can probably be increased.
3. Mail service is continuing to grow, and there's an opportunity to do events in our existing space and then significantly grow square feet within the building to a broader event space.
About the Sellers
The space is owned by three equal partners: the landlord, who’s excited to keep the space thriving in his building and is open to teaming up with a new operator; a coworking industry veteran with a track record of successful space sales; and one of Chicago’s most beloved art consultants, adding a creative edge to everything we do. Together, they’ve built a space that’s as welcoming as it is inspiring- and they’re ready to help it find its next chapter.
Notes from DenSwap:
"The space is beautiful and has pricing power since it's been run more as a hobby. The opportunity to grow within the building can generate meaningful profit."
