Looking to open a Coworking space in Boston Metro area. I am partnering with a Brazilian coworking operator. I think there is a need for such services in cities outside of Cambridge and Boston. Any thoughts?
Welcome to BiggerPockets, Oliver.
Can you start small, and the expand as the demand warrants? Maybe get a lease with options on the contiguous and nearby space? Also, get an option to buy the building if things go well.
Thanks for the welcome. Yeah, we could def start small. Optimally the business model works at 6,000 sq ft and above, but we are considering all options. A lease to own deal would be ideal but we'll need to find the right owner/partner.
We're actually moving into that sort of model. I just listened to a recent Biggerpockets podcast about renting smaller spaces and I know that's what @Joshua Dorkin uses. I've seen the demand for the medium sized units decrease which in our market is around 3k to 10k sq ft. The demand for the 500 to 2000 sq ft is large. These are new small business owners that aren't quit confident enough or have enough capital or funding to start bigger. Probably analogous to the trade up buyers in the residential space, the trade up commercial tenants aren't there because of funding and low growth prospects of the last couple years.
Exactly! I've been following closely the convergence between these trends. There are some exciting things coming up in the pipeline that might be of interest to you. I've seen some developers talk about a combination residential/coworking within the same building. You are living and working in the same cool space (save on parking, transportation cost, and you have all the services wifi/phone/printer). The coworking can be a huge draw depending on where the building is located.
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