What is the future of coworking, flex spaces, & commercial real estate?
In the aftermath of the COVID pandemic and an increase in corporate work-from-home policies, the commercial real estate market is due for a huge shift. Coworking and flex spaces have evolved to provide customized high-demand spaces for Fortune 500 companies, and savvy CRE investors can stay ahead of the curve by converting their portfolio vacancies to profitable coworking/flex spaces.
From desks for rent to outsourced hospitality for SMBs/enterprise
What do you picture when you think of “coworking”? Websites and stock photos often depict groups of young, attractive colleagues working in long rows of shared desks, sitting on couches with laptops, and working in between foosball matches. But in reality, coworking — or at least that version of it — is no longer driving profit for flex space providers. The rapid growth of firms such as WeWork, Regus, AWFIS, Smartworks, and others now has almost everything to do with serving the basic office needs of local SMBs and established corporations like Amazon, ICICI Bank, and Accenture. What’s been branded as a revolutionary answer to office life in the 21st century now more closely resembles a business model that’s been around for decades: commercial property management.
How to add coworking to your CRE property
We can make it happen. Propques consulting team can put together the elements you need to fill your property with a long-lasting and profitable coworking business. From feasibility reports, matchmaking with the right operator or franchise, and pre-and post-launch consulting to ensure you’re set for success.
Feasibility & Focus Research
Let’s figure out whether coworking is right for you. Our team will review your particular property and market, and create an actionable plan.
- Validation: Are there enough available customers in nearby zip codes to convert the property to coworking?
- Buildout: What type of furniture should you buy to for your customers, and what is the estimated cost for your goals?
- Client focus: What should you focus on – remote workers, small businesses, or corporate clients?
- Pricing: How much can you charge for desks and offices in your location?
- Competition: What is your expected growth rate and time-to-profitability based on the local market?
- Amenities: What provides better ROIs – standard coffee service, sparkling water on tap, podcasting studios, or something new?
Matchmaking with Coworking Operators
Looking beyond the brokered lease? Propques can connect you to our network of coworking owner/operators and find the perfect fit for your space.
In the post-COVID, post-WeWork, Awfis etc more and more property owners are turning to management contracts to reduce risk and share in the profits. Propques can guide you in selecting the right contract and make introductions to potential operators.
Joint Ventures & Franchise
Traditionally used by entrepreneurs in the know, property owners can leverage partnerships and franchises to hand off day-to-day responsibility and bring additional expertise to the table. We’ll help make it happen.
The process of finding the right partner for a profitable long-term business venture is more complicated than the traditional brokered lease. Propques matchmaking service tackles those problems for you by researching and forecasting future performance by our coworking consultants, connecting you to our network of property owners and coworking operators, and overseeing the project and integration to ensure success.
STEP 1: Research, Forecasting, and Financial Modeling
We’ll assess and run the numbers.
We create extensive proformas, market & feasibility analyses, and create guidance documents that inspire confidence moving forward.
STEP 2: Partner Vetting and Matchmaking
We’ll find and vet potential partners.
No unproven partners, no surprises down the line. We make sure our extensive network is qualified and primed for success.
STEP 3: Legal Frameworks and Process Management
We’ll guide the project to completion.
We have framework documents so you’re not starting from scratch, and we keep all parties moving ahead with concrete steps.
We’ll find your perfect match.
We charge a fixed rate per sqft for property owners – typically less than the traditional commercial brokerage fee. There’s never a charge for coworking operators to get matched. Reach out today and let’s see how we can help.