Total Square Feet12000
Office Occupancy55%
Desk Occupancy45%
Last 12 Months' Income$300,000
Last 12 Months' Expenses$220,000
Annual Net Profit$80,000
Included Assets$70,000
Growth TrajectoryGrowing
Years in Operation5+ years
Daily Operations Staffed
NeighborhoodDowntown
Remaining Time on LeaseLease 5+ years

Business & Space Overview

This Providence, Rhode Island coworking space is well established and has an excellent reputation in the community since it’s founding in 2016. The space will have the opportunity to grow from 12,000 SF to 16,000 SF with a new owner to take advantage to the growth in coworking. Having survived COVID and well positioned for the growth we are starting to see, we are currently at about 60% occupancy. In the next few years occupancy and use (meeting room rentals, event space rentals, flexible and dedicated space memberships) will continue to improve. There is time and space, in the post pandemic trend, to grow revenue to $750,000 with little additional expense. This is a great opportunity.

Q Location & Market

In addition to being one of the most well established, there is essentially no direct competition in the broad based coworking arena. Considering the various incubators and specialized places we are the only one with free parking. A surprisingly important benefit. Additionally, we are home to an art gallery that participates in the Gallery Night Providence program and showcases student and emerging artists as well as more established artists. The monthly change of show engages our members and the local community. Providence was just ranked as the second best in the top ten in the north east for relocations. The city continues to improve and grow.

Q Operations

Our business manager is on site every day from 9:00 to 3:00. Activity includes giving tours, helping members, building relationships, managing inventory etc. Bathrooms are maintained by the building landlord and weekly cleaning keep things moving along. There is plenty of time for marketing and sales activity.

Q Marketing

We publish a weekly newsletter to a list of about 2000. It is redistributed through several other lists. Our organic SEO is outstanding. We are a main sponsor to the local business plan competition and periodically host community events and meetings. We have been featured in local business news a number of times and continue to develop relationships and put print adds in local community magazines. Our spend is quite low and some of our marketing is on a barter basis.

Q Financials

The coworking and flex office space was started 6 years ago with about $100,000 in seed money. We have grown consistently reinvesting profit. After the first two years in our primary location we doubled our footprint. A year later we invested in a second location. A year after that we expanded again in our primary location just in time for COVID 19. At this point the landlord is selling the property at the second location (which, frankly struggled) and we are seeing a great move to a new, post pandemic, world of work where coworking will play a key role. Past financials, other than to say we grew and prospered are no indication in the last year or of the future. We are excited to discuss our experience and potential.

Q Opportunities for Growth

This coworking space is ideal for an owner operator or investor. A small improvement in marketing will boost fantastic organic opportunity. As I mentioned the city is improving, the population is growing and the demand for coworking will continue to expand. Adjacent to our current 12,000 sqf is a recently vacated space with an additional 4,000 sqf that would make a great addition and would give the room to make Sprout a business with over $1 million in revenue.

Q About the Sellers

John and Zachary are both successful executives and entrepreneurs. They are in their 60s and ready to retire. After 6 great years building the coworking space into a successful business, we are ready to pass it on to a new owner who can continue to build with enthusiasm and energy.

Notes from DenSwap: "This coworking space is back to above break-even and ready to grow. It's in an ideal market with a walkable neighborhood in an East Coast market. It could use an update to the design to increase pricing power, but the membership is strong and growing."

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