Alex and Jerome, thanks for your responses. 30% of rent (which includes parking, cleaning services and utilities) to gross revenue is what we're projecting so it's good to get confirmation on that. Would either of you also be able to point me to a business plan for opening a new co-working space? It would be very helpful to understand all the other various operating costs we should plan for.
Also, and I know this depends on a lot of variables (e.g., membership terms, available square footage, population of market area, etc), but in your experience, is there a percentage of reserved private offices vs communal desk space that seems to be a profitable formula? We don't want to lean too heavily on private offices at the expense of communal tables and therefore defeat a primary draw/essence of a co-working space, but reserved private offices do appear to be the largest revenue driver (at least on paper) for a profitable co-working space. Any insight would be appreciated! Thanks again. On Wednesday, December 12, 2012 4:22:14 PM UTC-5, Alison Baker wrote: > > We're in the planning stages for the opening of a co-share space. I was > wondering what percentage of projected gross revenue should be devoted to > rent. A "traditional" or "standard" percentage for commercial leases is > 10% of projected gross revenue, but I think that's really low for a > co-share business which isn't overhead intensive like a retailer or service > provider, e.g., software developer. I'm looking at leasing 3,000 square > feet, which in my target area runs around $20/square foot. This translates > to about $5,000 in monthly rent. Using the "traditional" figure of 10% of > gross revenues be devoted to rent, I'd have to generate $50,000/month in > revenue, an unrealistic figure. We want this venture to be a profitable > enterprise so that I could make a living running the space at some point. > So keeping this in mind, I would greatly appreciate it if someone could > please provide a realistic percentage of rent to projected gross revenue > that I should use in drawing up my business plan. And by they way, I'd love > to see any a sample/template business plans you recommend or would care to > forward of your own (redacting any confidential information of course). > Thanks! > -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. For more options, visit https://groups.google.com/groups/opt_out.
