How to transform your vacancy into a profitable coworking space
It is no surprise that coworking spaces are viable and popping up everywhere. They are more profitable per square foot and very attractive as an alternative worksite with the right amenities in place.
When the value is openly apparent, revenues will flow. You can maximize them even more with a few suggestions. It all starts with a good financial model and a great location. From there you can scale up to meet your needs. Ask yourself if your coworking space is going to be a business center or incubator. Each type is marketed in a unique way.
Here are things to consider:
- Demographics: incubators target a younger market, while business centers appeal to the mature client.
- The type of spaces: private dedicated offices, meeting rooms, open areas, event venues, etc. some items entail a higher margin.
- Any amenities like a café with free coffee or a comfortable team lounge. Location: research the best place for a coworking space, such as in high traffic areas. Find large populations of local professionals or target commuters.
- A competitive price setting
- Your niche: is it an application only membership space, restricted to a specific gender or industry, such as a creative company, or limited to a certain size? Your services should correspond to your mission.
WAYS TO GENERATE REVENUE
1. Membership: One way to have a basic income flow is by offering membership tiers suitable for your target market. Some building owners require a day rate for as little as $20, but it all adds up. Small companies and freelancers are used to this expense. You can elevate the fee for larger companies and independent professionals. Get creative with your membership plans and make them a basic source of revenue. Presell memberships prior to opening your space to give you a head start.
2. Affiliate deals are frequently profitable. Think of local companies and vendors who would like access to your membership list.
3. Offer services to non-members to fill your site, such as workshops and events in your space for a fee.
4. Gain access to corporate sponsors who may offer special discounts to your members for certain products and services. This will ensure long-term loyalty for income reliability.
5. Partner with a coworking network: this is especially important for independent spaces with one or just a few locations. You can upgrade your offerings by accessing this network. It is not that you are sending your members to competing spaces. Because you may be isolated, you may need what nearby brands offer as benefits. They are friends and allies, not competitors.
MAKING A GO OF YOUR COWORKING SPACE
It takes some marketing and promotion to attract tenants, depending on all the factors listed above, particularly your niche and location. If you do it right, your property will be a constant income asset and many people will want to become members of your community.
Get inspired with the articles How can a community improve your tenant experience and Why amenities and sense of community are essential for not losing tenants.
No doubt in writing your mission statement, you have some idea of the members that will populate your space and the types of sponsor events that will serve them best. Consultants can come in to get clients and offer you a compensatory fee. Anything that defrays your basic cost makes good business sense. Your own members can offer in-house services at a discount while you get a piece of the action.
Clearly, there are many dimensions to making a coworking space work so that it becomes a long-term profit center.
This article originally appeared at Online Real Assets. Written by Vincent Vallois.