5 Co Working Space Rental Business Success Stories [2023]
The co-working spaces are becoming essential in the post-pandemic world. Experts estimate five million people will occupy coworking spaces in the next few years. The projections are based not only on the growth the coworking industry has experienced over the past few years but also on the sharp increase in the number of startups coming up each year.
Therefore, creating your coworking space business will become a lucrative opportunity. To create a coworking space, do proper market research to ensure you have the demand for a co-work space in your target area.
Then, focus on finding an ideal location to attract the maximum number of customers.
Here are some real life success stories of starting a co-working space rental business:
1. The Farm Soho ($3.6M/year)
Lucas Seyhun, the founder of The Farm Soho, came up with the idea after considering turning his loft into an unauthorized Airbnb. When a friend suggested doing an "Airbnb for startups," Seyhun realized the potential and transformed his loft into one of the earliest coworking spaces in New York City. Despite initial marketing challenges, the company survived and now offers flexible office space to a variety of customers, positioning itself for success in the post-pandemic coworking industry.
How much they make: $3.6M/year
Where they're located: New York, New York, USA
How much did it cost to start: $0
Current team size: 15
The founder of The Farm Soho, one of the earliest New York City co-working spaces, shares how he built his affordable workspace model for solopreneurs and startups, as well as discussing his tips for attracting and retaining customers while navigating the challenges of running a business.
2. Ramen Club ($48K/year)
Charlie stumbled upon Product Hunt and attended indie hacker meetups. Eventually, he saw how encouraging meet ups are, leading him to start with the idea validation process.
How much they make: $48K/year
Where they're located: London, UK
How much did it cost to start: $250
Current team size: 0
Ramen Club is a founder community that aims to help solopreneurs succeed, enjoy their journey, and feel less lonely; it currently has over 100 members and $3,800 MRR with 35% MoM revenue growth between April and May 2022.
So... can you actually make money with a co-working space rental business?
Of course. There are millions to be made in this industry.
But how?
- Research real, profitable businesses and see exactly how much money they make.
- Study exactly what works, and what doesnβt.
- Take action, because now you have the roadmap.
Join Starter Story and build your next big thing:
3. Room2work ($180K/year)
Alan Crowe, founder of coworking space Room2work, came up with the idea after realizing that small contractors needed more than just storage space. Combining the coworking model with the self-storage model, Crowe created a shared office space that catered to local businesses in need of professional amenities, office space, and storage. Despite launching right before the pandemic, Room2work has managed to attract and retain customers, with a focus on optimizing services and providing value to members.
How much they make: $180K/year
Where they're located: Roswell, GA, USA
How much did it cost to start: $200K
Current team size: 1
Founder Alan Crowe launched Room2work, a niche coworking space for small businesses in 2020, generating $14K a month with plans to reach $100K in gross profit, by combining the coworking model with the self-storage model to offer a flexible office space optimized for local SEO, virtual offices, and meeting rooms designed for virtual teams.
Hey! π I'm Pat Walls, the founder of Starter Story.
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