5 Reasons I'm Interested In CoWorking Properties As A Niche

It happened about 5 years ago.

I was doing a TV show with another guest who told me she bought a New Jersey building and rented out the apartment to entrepreneurs. She had a waiting list of tenants, zero vacancies and automated rent payments.

As a frequent user of cowork spaces, I’ve always been intrigued by the concept. I was recently a member of CoWork Tampa, where I shared the space with a variety of businesses from a barbershop to a tech-startup. 

Generally, tenants, or coworkers, pay monthly for a desk, or their own private room/office for as low as $50 or has much as $500/month.  Coworking is still very new, but all the rage in NYC, Austin, Detroit, and San Francisco where the technology industry is booming, bringing more jobs and people with tech skills to the area, who need a place to work or live. Then, there are programmers and IT professionals who work from home and have outdone their time at the local coffee shop. 

Here’s what's interesting about running a property as a coworking space:

1) Invest in the community

Investing in a property in an up and coming neighborhood may offer tax benefits and can give the businesses in the area a boost in traffic during lunch hours. It gives a ‘hood a cool factor, too. Check these out in the Gowanus one of the toughest nabes in NYC years ago.

2) Recurring monthly payments

Tenants pay monthly by credit card. Few are willing to cancel as long as they have work. Like a gym, it’s “hard” to cancel without the guilt.

3) Booming Tech Industry in Tampa/St Pete

The Tampa/St Pete, FL has experienced a huge technology boom with the increase of tech startups, incubators, and accelerator programs like Tampa Bay Wave in the last few years. These professionals and founders need a place to live, work, that’s affordable and easy commute.

4) Multiple Income Streams

In a traditional property, when one tenant leaves you're cash flow is stuck until your next find.  In co-working, you have let's say, 49 tenants left who keep the money coming.  Besides the rent, there can be other services padded into a cowork property such as mail-services, print/copy services, workshops and events.

5) It's Fun

If done right, it can be a way to network and meet movers and shakers in the community.

I’m still researching this as I restart my REI journey. Not sure where I’ll end up eventually, but rentals are definitely on my radar. Coworking does take a bit longer than average to break even, and has unique marketing needs, amongst a few other challenges.  But may be worth keeping an eye on.