- For REITs/Funds
Central Business District Denver, CODemand 200K sfSupply 163K sfRecommendation High-end Modern FlexSunnyside / Highlands Denver, CODemand 80K sfSupply 63K sfRecommendation Executive SuitesCommerce City Denver, CODemand 1.5K sfSupply 0K sfRecommendation Do not Invest
DenSwap's Flex Intelligence Platform translates our proprietary data and real-world coworking experience into insights and actionable strategies that help our clients realize the full potential of their commercial real estate. Stay up-to-date with client demand and capture the upside of flex space throughout your CRE portfolio, then follow up with the go-to-market strategy to win & retain the right tenants.
- For Building Owners
Are you considering transforming your commercial property into a flexible coworking space? Our feasibility reports can provide you with the insight you need to make a confident investment decision. Our team of experts utilizes market data APIs, proprietary information on coworking spaces, and unique consulting expertise to assess whether a given building is suited for a successful flex/coworking business.
- For Flex Operators
Are you considering opening a new coworking space? DenSwap's Demand Analysis Report is a quick validation tool so you can move forward or back off on potential plans. You give us a zip code, and we'll outline the general demographics of the area as they relate to coworking. You'll get a good estimate of how many potential customers are in your area, how many square feet the region can support, and what type of buildout and business model we'd recommend.
- For Building Owners
Business & Space Overview
Recently expanded with management agreement! Owner’s profit is expected to increase to $12,000 per month.
The coworking space is the first and only full-service flex operation on Cape Cod, and the only one that caters to a professional clientele. Our spaces were designed in a “coastal professional” style that provides functional space reflective of our seaside environment. The first location in Hyannis is convenient to all transportation modes in the Cape’s central business district. The second location in Mashpee is in the center of Mashpee Commons, the Cape’s only upscale, walkable lifestyle center. Both have access to plenty of shopping, dining, services and free parking.
Business Highlights
Private offices in both locations are fully occupied, with 7 new offices coming online in Mashpee
in August. The coworking space has a strong community presence and a thriving virtual business. Cape
Cod is experience dramatic growth in year round population since the pandemic. The business
also has fiber optic internet which is not common on the Cape.
Daily Operations
The coworking space is currently operated with part time staff that work an approximate aggregate of 40
hours per week. Staff manages day to day operations. Owner handles office rentals and
corporate memberships. The coworking space uses the Satellite Deskworks workspace management
tool and is able to allow clients to self-register for membership and room reservations.
Staff is supplemented with outside vendors for IT and markeeting support.
Marketing
Because we have little compentition we have not needed to list with big aggregators and pay
their commissions so we have been able to invest our markeitng money in our website and
SEO which are our biggest marketing tools. We use an outside social media manager who
maintains and grows our social presence. We run periodic deals with a local Groupon-type
service, and generate business from programming public events.
Financials
Hyannis operating expenses are $28K/mo and it generates average $34K/mo in revenue which is higher in the summer months. Mashpee opened two months before the covid shutdown in
Massachusetts is only just starting to operate in normal times. It is generating approximately $8k/mo in revenue on $5k operating expenses. The new offices are projected to add $9K in revenue on $2K expenses. Once occupied total revenues will be $17K less opex of $7K, net $10K of which operator participates at 35%.
Opportunities for Growth
The coworking space has had a waiting list for private offices almost since inception, and the demand is growing. Hyannis was built with too much open space, some of which should be reclaimed for private rooms and such an investment would significantly improve cash flow. The nature of the audience is growing but also changing, so the operation could benefit from a fresh marketing approach with some investigation into how to reach the influx of new potential users.
ABout the Seller
I am the former CFO of a large commercial real estate developer in New York. My company started a brand of flex spaces to include their office buildings and I became involved with and interested in the business model. When I moved to Cape Cod for a lifestyle change I believed that there was a need for this product here so I created it. In seven years we have built a wonderful community and operating a business like this allows me to enjoy our seaside home. Investing in a lot of cloud automation allows me to be a part-time operator and entrusting the space in my staff.
Notes from DenSwap:
"This is a turn-key operation with established and growing profits through a mangement agreement. The owner has designed the space to be automated."
