co-working space or incubator space
I have investments in Pittsburgh--about four hours from my home. I have assembled a group of properties, one of which is a former social club at a high traffic count intersection that I am bringing to vanilla box with new electric, HVAC, wall, insulation.... The finished product will be new 6,500 sf. open span space with steel beams and everything. I adjacent properties that can be developed into 50+/- parking spaces.
Pittsburgh is experiencing rapid economic growth and one of the drivers for this trend is growth in the technology sector creating increased demand for incubator and co-working space. This building is well-suited for this purpose but I am reluctant to use the space for that purpose. Co-working space is a business and not a simple landlord-tenant relationship, I would need to lease the space to an entity who would then run the business rather than the individuals occupying the space.
My question: Does anyone have experience in this sector? Are such tenants too risky to consider? Can I expect market rents? Is it likely that the tenant (the business) receives sustained support from economic development groups or VC investors, etc. Any insight would be appreciated.