An hour outside of New York, this exurb near Sommerville is filled with potential for more coworking that targets 35 to 45-year-old professionals that are seeking something more local and less rigid than a national brand. Based on our Demand Analysis, the city can support over 60,000 SF of flexible office space. This type of demand broadens the types of buildings that we could recommend for an office-heavy executive suite to shopping centers, second-floor neighborhood office buildings, or even office parks.
The surrounding area only has 3 nearby spaces, but one is a national chain, another is a dated executive suite, and the third leans more towards open workspace and traditional coworking. We estimate a total of 22,000 SF in the greater area, leaving room for more competition.
Our Data-Driven Process
DenSwap’s unique formulas and tool sets use the dynamic datasets that McDonald’s, Target, and Starbucks use to plot out their next locations. We’ve used our experience of operating coworking spaces for 12 years and as market researchers to develop a process and algorithm specifically for the coworking and commercial real estate industry. The datasets uses over 67 detailed buyer and lifestyle profiles and we’ve correlated each profile with successful coworking markets and forward looking trends. Each profile is graded on their likelihood of joining a coworking space and the type of coworking space they would be most interested in.
All of that data is combined with other local factors (density, mode of transportation, education, etc.) that determine the likely success and size of coworking spaces that can be sustained in the area. The result projects how much coworking space can be sustained in the area the type of coworking (High-end Flex, Mid-range Flex, Executive Suite, etc) that will be most in demand.
Hillsborough, New Jersey Zip Code 08844
The zip code, 08844, covers the neighborhoods outside Sommerville between NJ Highway 202 with Highway 206 running down the center of the zip code. In a larger custom feasibility analysis we’d likely include the entire city running south Highway 206 going away from Sommerville, the center of activity for the region, and any relevant suburbs within the ‘coworking radius’ that would fine-tune the numbers and our recommendations. The area that we covered has an estimated total of 22,000 SF and 27,450 people that could join a coworking space. The 15-minute area surrounding the neighborhood has 51,441 people that could be potential coworking members. The likely coworking base for the zip code is estimated to be between 824 – 1,647 customers within the zip, but over 3,000 within an easy drive.
The average income for the zip code is very high at $195,137 (above average indicator for coworking success), the population density is below average for the zip code, and the number of undergraduate degrees is an above average indicator, but the indicator is strong when considering graduate degrees.
Is there an opportunity for a new space in Hillsborough?
Yes! According to our DenSwap Competitive Analysis database there are 3 direct and indirect competitors. One is an outdated executive suite, another is a national chain, and the third leans to being a traditional coworking space with a few offices. There total square is estimated to be 22,000 SF.
There is an undersupply of 39,763 SF and we would recommend a Mid-Flex space that is 80% offices, with around 25 hot and dedicated desks. The amenities should be novel, but practical that are attractive to 35 to 45 year olds.
Sample Recommendation for a generic 8,000 SF Space to Succeed in Hillsborough
This information is included in a Coworking Focus and Feasibility Report designed for building owners.
A sample of recommended amenities:
- No beer on tap, offering flavored sparkling water (way cheaper than kombucha, tap is also a ‘talk-a-about amenity’ vs cans)
- Podcasting studio OR video backdrop (costs ~$1,500 to get set up)
- Whiteboards in most offices. The target market are not lawyers and accountants but remote developers and sales people.
- Standing desks. They can be cheap ones.
- Mobile-friendly coworking software
What size of offices should you have?
- Hot Desks: 15
- Dedicated Desk: 6
- 1-person offices: 15
- 3-person offices: 11
- 4-person offices: 8 (competitors stop at 3-person offices)
- 6-person offices: 4
Annual Revenue: $220,000 to $254,000
Furniture Type: Mid-Level Commercial
Start-up costs: $290,000 to $515,000
Additional information provided in a report:
- 1st year monthly pro-forma
- Pricing recommendations
- Staffing recommendations
- Technology stack
- Furniture selection
- Meeting room strategy
- Budgeting
