Location, location, location. You’ve probably heard this age-old quote about the massive importance of location in the real estate market, whether it’s for personal or business purposes.
But while it’s a cliche, it’s also true, especially for coworking operators. Your coworking space’s location can make or break your business, so it’s essential to find the right one early on.
In this article, we’ll help you create a framework for evaluating potential spaces for your coworking business based on five essential factors:
Let’s dive in.
Like most other key business decisions, choosing the right location starts with your target market.
This is a simple point but it’s also easy to overlook, so just take the time to consider who your target customers are and where they’d like to work.
If you’re not sure, look for other coworking spaces and office buildings where they already are. This is a good hint about the areas in which your space can thrive.
Back in 2017, WeWork ran an extensive analysis of the restaurants, coffee shops, gyms, and other amenities in certain neighborhoods.
Their goal was to pinpoint the right locations for their coworking spaces based on the density of amenities around them. While you don’t need to hire a whole data science team and create complex reports, it’s still essential to evaluate the area around your space.
Here are three key questions to answer at this stage:
Again, this doesn’t have to be a huge scientific undertaking on your end. A quick look at Google Maps and a few hours of walking around the area should be enough.
Businesses in the same industry tend to cluster together. This is especially true for tech startups which are the primary customers of many coworking spaces.
That’s why you should consider if your target customers are already working in the area you’re evaluating. If there are many office buildings or other coworking spaces clustered closely in the region, chances are it’s a good spot.
However, this doesn’t mean you must blindly follow the herd.
Building a coworking space in an area that doesn’t have many office buildings can be a good differentiator, although it’s a riskier move. If you’re going to go that route, make sure your target customers are still within 3-5 miles, otherwise it will be very difficult to get them through the door.
Once you zero in on an area, it’s time to evaluate individual spaces — buildings, floors, groups of offices, and so on.
If you don’t know where to start, consider getting in touch with a reputable broker or agency, as they have networks of landlords on standby.
Here are three of the most important things to evaluate when looking at each space:
After mulling over all the technicalities around the area, buildings, and budget, it’s time to consider the human element — the landlord.
You’ll want to set up a meeting with them to get a first impression by discussing questions like:
One or two casual meetings can give you a good sense of what to expect. However, if you have the chance, talk to a former tenant as they can give you a first-hand assessment.
Starting a new coworking space can be scary. There’s so much to consider, even after finding the right location, like choosing coworking software, promoting your space, creating a business plan, and more.
That’s why we created the OfficeRnD Flex Startup program – because we believe that every aspiring coworking entrepreneur should start with the right coworking software without breaking the bank.
By taking advantage of our program, you can get a 50% annual discount on our Flex Startup plan and get access to Flex Academy — our library of detailed resources for starting, running, and growing a successful coworking space.
Click here to apply now.
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