Many small business owners start by working out of a space available in their own homes. Not only does this save them money on overhead and start up costs, but it can be convenient for the whole family. Although leaving the daily grind of the traditional business office world can be liberating and exciting for many people, not having a professional place to conduct certain aspects of your business can be difficult.
Workspace itself has become a profitable target for big real estate investments. If you buy a space for coworking, you will be able to charge rent for more than just one client each month while providing space to all of your renters. There are higher start up costs associated with this type of investment, however, once the coworking space is set up, you will have the advantage of putting multiple tenants into the same space at one time.
These types of rentable spaces have become a valuable asset to many folks who would otherwise work from home, but want their daily space more structured and professional. Take a look at some of the reasons why Novel coworking has become such a desirable trend for investors.
The Draw of Productivity
Many small businesses have very little capital to put into professional offices. A coworking space provides them with the minimum requirements to add a professional touch to their brand.
More and more people are starting to move away from bigger business where their talents and efforts may have been wasted or were unrecognized. As the trend of self employment grows, so does the need for affordable space where startups can be more productive.
Affordability
When you are looking to invest in a profitable coworking space to lease out, you may be intimidated by the initial costs. Intelligent design can lower some of your start up costs. There is no need to provide only private office suites to clients as the coworking spaces that are popular also offer casual meeting places and desk assignments in an open and shared common area.
The amount of permanent staff that you should require will also be at a minimum. An office manager and facility coordinator can do a great job of keeping things in order with this type of working environment. For most coworking spaces that are now operating, investors are seeing a minimum of a 12% annual profit in the first year.
Flexibility
With a coworking space, you will have the option to negotiate either part-time or full-time leasing terms. Your clients can come and go as their own schedule demands it without worrying about losing money on having unrented units. Leasing terms vary widely and can be customized to your specific needs. You may be able to offer a full private office suite or just a desk space in a common area. Either way, you will be able to negotiate the best arrangement that yields the highest profit for you.
Professional Contacts
As the coworking trend takes hold in the small business world, you will have the advantage of happy clients that can easily bring in new renters. The amount of productivity, engagement, ability to network with other professionals and the savings themselves is enough for your clients to happily spread the news about what you have available. Putting people at your desks will be easier than you can imagine. In urban areas there are many coworking spaces that are currently compiling waiting lists.
