Investor/Developer · Los Angeles, CA · Member since 2010 · 107 posts · 92 votes
Hi Everyone,
I run an investment brokerage and development firm in Los Angeles and have lately been focusing on a few projects I have in LA county that would target entrepreneurial start ups in various commercial manufacturing sectors. They would be "incubators" for small/start up companies in similar industries.
The idea is to take the We Work shared office idea and modify it to specifically target companies working in the same arena.
I'm seeking feedback from real estate entrepreneurs in LA and Orange County so see if there would be any interest in this type of space for real estate professionals?
An example I can offer directed towards marketing firms is in El Segundo called: El Camp
The idea would be to collect like minded entrepreneurs working as real estate agents, investors, developers, contractors, title reps, lenders, equity investors, wholesalers, appraisers, you get the picture...
@Scott F. I understand where you're coming from because I am quite bipolar when it comes to my work environment myself. Most of the time, I like my privacy and a quiet space to compose my thoughts, but there are times where it's time to socialize and interact with my colleagues. Unfortunately, if I'm someone who cant afford my own office space (who these workspace environments mainly target) or I'm looking to keep my fixed costs low, then I can't have the luxury of being picky.
@Allan Glass, as someone who recently came out of the USC entrepreneurship scene, and now working in real estate, I have an interesting perspective:
I have visited, toured, and worked in several USC incubator spaces as well as some SF and LA based shared workspaces like CrossCampus and StartEngine. These spaces work because they offer the shared common space but also have small shared private rooms and conference rooms with time restrictions and reservation capabilities. Members of the community understand what they are getting into and respect the "house" rules in regards to networking, being obnoxious, etc.
Lastly, I think we will continue to head into a shared ecosystem as a society and these spaces will become more and more common and in demand... especially with the rental prices that continue to rise in LA's private offices. As millennials, like myself, graduate and as technology and real estate continue to intertwine, this seems like a great idea to me.
Absolutely think it could work. Just about creating the culture and attracting the right members/tenants. Questions I would have are: Who is your ideal target tenant? How do you attract people/companies to your space (and leave where they are comfortable now). For this to be a place realtors will want to work it can't be a feeding frenzy of lenders, title reps, escrow officers etc. always looking to "network".
Hi @Shayne Fee thanks for the feedback. To answer your questions, my initial thoughts are:
1) Who is the ideal tenant - any real estate related start up or small shop, including - architects, independent brokers, appraisers, lenders, equity investors, contractors, developers, investors, designers, escrow officers, etc. The concept is to refine the shared workspace model into an industry specific shared workspace and networking environment. They key would be to find like minded professionals that have an interest in being part of an ecosystem and would approach business in the same way.
2) How do I attract individuals / companies - Initially it would be like this, reaching out to my network (I've been doing this in LA for almost 25 years) and to networking sites, like Bigger Pockets to find small shops and independent entrepreneurs who would benefit from a social network in their field and have small space requirements. Similar to WeWork, the concept would be to deliver more upscale space in smaller packages for smaller firms. As the roster of partners grows, it would require a curating new partners to ensure they are a fit with our existing group.
3) It can't be a feeding frenzy - You're right; it should be a fun social environment where like minded companies network, but it should be a team of partners that understands networking etiquette and can appreciate that there is a time to network and a time to leave your partners to their work. I think we accomplish this with a clear set of social rules among the group and by providing a consistent flow of networking opportunities at the space.
I'd really appreciate any and all comments/questions all of you may have regarding this concept. My initial thoughts are to find a space of about 20,000-25,000 sf and deliver the space to partners either by open desk, dedicated offices, or team offices.
In the past we’ve done about the same thing only with industrial buildings. You can convert space for individual offices, with a common conference room, lunch room, shares secretarial services – phone, fax, copy… Depending on the building you can have movable walls that are basically dividers between desk’s / offices for expansion / contraction.
Open space may not work well due to control over the individual tenants. Some like loud music, loud phone talkers (like me) people that pace (like me again), people that don’t like others studying / looking at them, lack of privacy, safety / security. You would have to check local zoning laws for security and privacy, California is known for some out there regulations – like scent free areas…
Thanks @Scott F. the concept isn't new as you've pointed out. We are also doing this with manufacturing and industrial buildings around Los Angeles.
I agree with your point that we need to curate a group of partners that are comfortable with shared workspace environment. In LA, San Francisco, New York and many other major cities WeWork and several other co-working spaces have become commonplace. These however tend to be cross pollinated with companies in different industries.
The El Camp project I noted above and my concept is to be industry specific so we may have social events that networking events that can be mutually beneficial among the group.
@Scott F. I understand where you're coming from because I am quite bipolar when it comes to my work environment myself. Most of the time, I like my privacy and a quiet space to compose my thoughts, but there are times where it's time to socialize and interact with my colleagues. Unfortunately, if I'm someone who cant afford my own office space (who these workspace environments mainly target) or I'm looking to keep my fixed costs low, then I can't have the luxury of being picky.
@Allan Glass, as someone who recently came out of the USC entrepreneurship scene, and now working in real estate, I have an interesting perspective:
I have visited, toured, and worked in several USC incubator spaces as well as some SF and LA based shared workspaces like CrossCampus and StartEngine. These spaces work because they offer the shared common space but also have small shared private rooms and conference rooms with time restrictions and reservation capabilities. Members of the community understand what they are getting into and respect the "house" rules in regards to networking, being obnoxious, etc.
Lastly, I think we will continue to head into a shared ecosystem as a society and these spaces will become more and more common and in demand... especially with the rental prices that continue to rise in LA's private offices. As millennials, like myself, graduate and as technology and real estate continue to intertwine, this seems like a great idea to me.
@Allan Glass - I love the concept. An open vibrant office of like minded individuals can have incredible outcomes. Being able to roll over to another professionals office to bounce around ideas and help each other's businesses can have fantastic synergistic outcomes.
Keep me in the loop. If it's in the West LA area I might be interested in popping in a couple days of week.
I've actually worked at El Camp @Allan Glass. My previous career was in advertising.
They host a number of social and networking events in their common space. That's part of the draw. There's a weekly happy hour, frequent guest speakers, films, parties, you name it. They even have bands sometimes.
The first floor is mainly the anchor ad agency, Ignited, and a large common space. The second floor hosts the smaller companies. I believe you can rent anything from a closed office to a cubicle to a desk out in the open floor.
I think it's a great idea for a real estate incubator.
Thanks @Jason Carter we were able to tour the building and meet with the owner of Ignite. We would like to model the concept on their business plan. thanks for the feedback.
Allan Glass a very interesting idea! I think, as an agent, this is intriguing for those of us thinking of going on our own eventually. I haven't been in the field long enough to feel comfortable going it "alone" yet, but definitely in my 5-10 year plan. Please let us know if/when you start this, is be very curious to your success/difficulties with this concept. Best of luck!
Allan Glass Sign me up! Very interesting. I am in the government tenant improvement industry, i have an interesting itch of track home development and how to get there. Also need a stronger background on finance, so this would be a great help to the development sector. There are a bunch of grant writers -- some might be contingent upon approval -- out there that could get this SBA/Government backed, at least for the first few thousands. At least we can benefit some of the taxes we pay yearly. :)
@Allan Glass I think this is a great idea! I've mentored at the nation's largest startup incubator, NYU/Data Future Lab in NYC. It's great for the startups and the resources have to be great for the companies to join. There needs to be speakers, mentors, social events, investor resources, business model development, etc.
Keep me posted on the progress as I'd def be interested in supporting as a mentor/advisor.
@Shawn Ward - I appreciate your comments and experience. Yes, I'm thinking this may work well as an accelerator model vs. just shared office space. As such it would include all of those educational and social events.
@Manolo D. - I'll keep everyone posted on this thread as we progress.
My partners and I have been developing a similar concept for the BioScience Industry in the north east area of LA (El Sereno). We call it Hatch - as we hope to capture tenants that have outgrown the incubators they are currently working in. We expect to start construction in the next couple months.
Hi @Shital Thakkar We're focusing on the BioScience project to prove out the concept, then we expect to roll out to other industries, real estate included. Our expectation is that construction will begin in 60-90 days.... Here's a rendering of our finished building.
Allan Glass sorry I'm late to the convo, try getting some architects to rent some space, there are plenty of us who could provide mutually beneficial services in this environment
Hi @conner wingfield I agree. I'd like to have a few disciplines (architecture, finance, lenders, engineers, brokers, etc.) in the space; hopefully create an environment where everyone feeds of one another.
@Antoine Martel I'd be happy to talk with you about it. call me at your convenience.