From cash cow to cash drain, non-performing properties are hard to get rid of and harder to keep. Changing times and economic forces might have turned your once profitable enterprise into a liability, but you can get back in the black by investing in coworking spaces.
A Sure Deal
A coworking investment using a large property is virtually guaranteed to succeed. Ninety percent of virtual offices/shared office spaces/coworking spaces turn a profit in one year or less if they can accommodate 200 members or more. The initial investment in transforming the property to an actual coworking pace and the franchise fee can be a bit pricey, costing $200,000-$500,000.
However, paying maintenance fees for a non-performing 15,000-20,000 square feet property for a couple of years will cost around the same amount. Large corporations have adopted the coworking system, bringing more of their personnel into shared office space settings. These corporations prefer more significant properties (preferably tied to an established coworking brand), so they can keep their staff together in one space. Demands for coworking spaces are expected to increase in the next few years exponentially.
Establishing your coworking space early gives you a firmer footing and a stronger foundation. A coworking franchise requires very little from the owner in terms of management. Once you’re done setting up the coworking spaces, the coworking brand you partnered with will handle everything. All that’s left for you to do is cash-in your monthly checks and count your profit.
Making Your Coworking Space
Coworking spaces are not your usual office spaces. Ditch the cubicles and partitions. Instead, opt for free-flowing workspaces with plenty of room to move around. Add lounges, a pantry, recreational areas, and a conference room or two. Set up your coworking space with high-speed internet and the usual office essentials like printers, scanners, printer paper, and other office supplies. Hire a few people to take care of maintenance and janitorial services to keep the place clean and running.
If you’re planning to add concierge services, then you’ll need to add one or two people to handle secretarial work. It gets a lot simpler if you’re partnering up with a coworking brand. You won’t need to worry about logistics and staff because the brand does everything for you. An established coworking brand can also get you in touch with corporate clients, immediately earning regular members for your space with no effort on your part.
Options for Homeowners
Coworking spaces aren’t limited to large properties — even homeowners can run their own little coworking space within their property. A sofa, a few chairs, and a couple of tables can serve as your workstations — all you need is an internet connection and air conditioning or heating to keep your coworkers comfortable. Reach out to local clubs and groups and offer your house as a venue. While you probably won’t be earning big money, you’ll still make a bit of profit, and you’ll be helping your community.
Coworking spaces are one of the most secure investments you can make. It requires minimal effort and supplies a steady flow of revenue that can only get bigger as more companies adopt the coworking system.