Collective Office Workspace?

Question

I'm just in the brainstorming phase on using a retail space as a "collaborative workspace" where freelancers and small business owners can rent shared office space.

Business center with spaces to be rented at different rates for differing time periods.

Freelancers, photographers, small business owners, realtors, are all possible tenants. I assume the major things we'd have to do is design and furnish a usable workspace-- wifi, desks, copy/fax/etc, coffee, conference room

I was trying to decide if it's better to rent dedicated spaces for more or just have a lower price and make the rates similar to a "gym membership"model

It would be in the Los Angeles area. Long Beach or possibly in the South Bay.

Has anyone tried this or have any ideas?

Coworking Space Article

Oliver Sanchez · Answer

Yes, that's the basic RE deal, however its heavier on the management since you have to develop a community and generate content. That is why the Regus model is not the same. One of keys is a partneship with the landlord, per sq ft prices need to be reasonable in order to make any money

Rich P. · Answer

Coworking space is big business now. From what I have read, the business model is that they lease up a ton of office space somewhere for x $/sf then they do their T.I., split it all up, sell memberships at a higher rate per unit to make a spread. Again this is just from what I have read. I think WeWork is the most famous of them all. Started in 2012 I believe..latest round of funding was $400m+ for a $10bn valuation. Crazy

Oliver Sanchez · Answer

Hi Will-

I just recently opened my coworking space in Cambridge. plugcambridge.com

Feel free to contact me about questions, similar to you I started thinking of this as a real estate deal. I partnered with a Brazilian coworking operator and partnering with other people to provide the community (very very important) Feel free to contact me directly to discuss.

Jim Brown · Answer

I did some contractor work for a company called "Uber Offices" based out of DC.  No affiliation with the Uber driving service.  They are doing very well and are expanding nationally.

**Edit** it looks like they changed their name to "Make/Offices" now.  I guess uber didn't lke them poaching on their name. :)

Fay Chen · Answer

They just opened one at where I work. It's called Wework in the Gas Company Tower. I don't know how they are doing since they just opened less than a month ago. Come and check it out! Free coffee and even beer for the tenants, I think.