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 January 2016. The space has the opportunity to grow from 12,000 SF to 16,000 SF with a new owner taking 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.
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.
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.
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.
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 we doubled our footprint. A year after that we expanded again just in time for COVID 19.
We are seeing a great move to a new, post pandemic, world of work where coworking will play a key role. Considering the pandemic, past financials, other than to say we grew and prospered, are no indication of the future. We are excited to discuss our experience and potential.
Opportunities for Growth
This coworking space is ideal for an owner operator or investor. A small improvement in marketing will boost a fantastic organic opportunity. As 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.
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.
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