- 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
Perfect location, between the University and the tech corridor, 12 offices, 2 conference rooms, large open/even space, and an always occupied high demand industrial space, this space has been split between remote workers, entrepreneurs, and university affiliated researchers and students.
The opportunities for growth within the space and to the neighboring suite is perfect for a coworking chain looking to expand to a desirable California city that can focus on operations and marketing. The current business owner has been distracted by other needs and hasn’t been able to focus on the coworking space. He has done the hard work of getting it close to break-even with a strong and growing hot desking community and offices. The space will generate thousands of dollars as-is come September when the offices will fill back up. The current warehouse renter is paying around $2,000 below market rate and is month-to-month.
The new owner should plan on investing another $30,000 to $50,000 to build out additional offices that are in demand and at a premium in Santa Barbra. This will concentrate the hot desking community to create a vibrant culture while adding revenue with 8 to 10 additional offices. The space has been priced so the new owner can likely earn their money back in 18 months even with the investment in new offices.
High Concurrency Possible
This space serves two demographics with different timing needs: remote working parents seeking shared workspace during the day and university students who would rather pay our membership fees than university parking costs at night. Additionally, the coworking space is closer than the library for university affiliated faculty and graduate students living in university housing.
Easy Operations
Although currently staffed 8-5, that is primarily to be responsive to walk-in sales opportunities. The space caters mostly to members, and people who pre-book online. A single minimum wage staff member currently staffs the front desk.
Marketing Is The Growth Opportunity
Less than $200/month has been spent on marketing. Profitability could probably be quickly turned around with skilled marketing efforts.
Opening Into COVID
The business opened February 27, 2020, meaning the first 18 months were mostly closed. Although technically open a little over two years, it's business momentum is just getting started.
Growth Opportunities
The biggest failings by the current management are marketing (organized campaigns and adequate spending) and sales (insufficient follow up and closing). Generally, once a membership is sold, the most common reason for relinquishing membership is moving from the area.
About the Seller
The seller is a highly enthusiastic women in business and technology who opened the space to be the local area's science and technology "club house." Unfortunately, her health began to decline several months ago and she is no longer able to manage the space.
Notes from DenSwap:
"The location is close to break-even and the path to profitability is clear. The location has too much shared desk space and additional offices need to be built. 8 new offices will likely add $75, 000 to $80,000 in annual profit. "
