When launching a coworking space it’s always advisable to follow the golden rule of real estate. You know the one...
It’s all about location, location, location.
Granted - this can be an intimidating part of the process, especially if you are new to the real estate market in a given region.
That said, good business decisions are contingent on conducting proper research.
The truth is: Location can make or break the success of any business.
As a result, it’s critical to equip yourself with adequate knowledge and insights before leaping.
With so much information and data out there about real estate, it’s difficult to know where to direct your research efforts.
That’s exactly what this article is here to do.
In this article, we will cover the essential research that should be done for a coworking entrepreneur to find the perfect location for their space.
Essential Factors To Consider When Shopping For A Coworking Location
Population size and demographic
Consider for a minute a hypothetical scenario where you are personally searching to relocate to a new city or region to jump-start your career.
It’s a bit scary.
The thought of starting your entire life somewhere new. As a result, it would be unadvised to make a blind move. You would naturally do some research first.
Think about the research you would do to maximize your chances at career success in that area.
For example, you would first want to search for a city that is experiencing job growth in your industry. Essentially, you would want to find a place where your profession is in high demand. This way you could leverage your experience and ultimately get your career growing and thriving.
Similarly, to pick an area where your business is most likely to thrive, you need to make a calculated decision in terms of location; thoroughly investigating the market in a given area before zooming in and shopping for actual space.
Whether you’re looking to open your first space, or expand a successful concept into new neighborhoods or cities, conducting a thorough demographic analysis of a region is a vital first step.
That said, population size, housing prices, average age, incomes level, and family status are all key data points that help understand and assess the demographic DNA of a given area.
Ultimately, you want the demographics of this area to align neatly with the profile of your target customer.
Proximity to public transit and area infrastructure
At this point, you should have hand-picked a few select regions boasting demographics which align neatly with your ideal customer.
You’ve already made some great progress by now. The next steps are to zoom in on each area; look for specific locations and neighborhoods in those regions that would appeal to your target customer.
During this search, you must keep in mind one of the most important factors that will make or break a deal with a potential client: Accessibility.
In other words, proximity to the target client's home. A long and difficult commute is a deal-breaker for many potential clients. On the whole, people prefer to live near their place of work, and at the very least, work in a location that is easy to access via public transportation.
Physical amenities checklist
While assessing the proximity to public transit you can begin drafting a “wish list” of what your ideal space in terms of the building itself.
For example, how much space do you want? Do you want a ground floor space? Lots of outdoor space? How important is natural light, etc?
Building this basic wish list is essential for the next steps. When you are working with an experienced broker, they will help you find locations that fit these fundamental requirements, so it’s crucial to clearly articulate them upfront.
Find an experienced commercial real estate broker
Now that you have a solid idea of where you want to open your space and what type of space you’re looking for, you will need the assistance of an experienced broker to help your search.
A real estate broker with years of experience in a given region will be able to provide you with more nuanced insights about the area, provide you with valuable connections with a landlord, and help facilitate the negotiation process.
As a result, working with a broker will save you the greatest resource of all: Time.
That said, once you’ve identified your key needs in terms of space, a broker will do leg work to provide you with a list of space options that meet those requirements.
At this point, your options are lined up, and you’re well on your way to finding the ideal space for your business to grow and thrive.