Hi Loren. I see you’ll be @GCUC - great! FYI, I don’t think any of the SM spaces have joint ventures - all are standard lease arrangements, including ours.
It would take more info to understand if the 50/50 would work. Off the cuff, if you’re operating expenses don’t total the same as the rent, then the 50/50 wouldn’t be fair. As you currently have it, the landlord should earn 2/3 of your upside profit. That said, regardless of the split, your landlord would indeed earn some rent, as long as you have incoming revenue - that rent would likely not be the full rent until a year. I believe Regus forecasts 1-3 month to break-even on an operating basis. Coworking spaces seem to forecast 6-12 months, based on anecdotal evidence. 12 months is conservative, but not sexy - find a way to be closer to 6 months. As for rents, keep in mind that most other cities use annual rates, so your $2/sf/mo would be $24/year, to compare apples-to-apples with others. 15k sf is a large space, so $30k is just what the math yields. SM spaces are much more, so yes, we all pay proportionally…and list proportional rates on our end. There is a reason that most metro cities on the East and Left Coasts charge about $500/mo per desk. As for the contract, I would not trust any template. Any biz lawyer can draft this up - get one w/ lease experience. Keep it simple: the landlord provides the hardware (space), you provide the software (community). JEROME CHANG WEST: Santa Monica 1450 2nd Street (@Broadway) | Santa Monica CA 90401 ph: (310) 526-2255 CENTRAL: Mid-Wilshire 5405 Wilshire Blvd (2 blocks west of La Brea) | Los Angeles CA 90036 ph: (323) 330-9505 EAST: Downtown 529 S. Broadway, Suite 4000 (@Pershing Square) | Los Angeles CA 90013 ph: (213) 550-2235 On Jan 21, 2015, at 12:04 AM, Loren Tripp <[email protected]> wrote: > Thank you to everyone who participated in this webinar- it was a great > introduction to the idea of joint-venturing with a landlord. It also shed > some light on how the large spaces in NYC and Santa Monica may afford to run > out of those gorgeous buildings. > > I've been building my community for CoStudio Pasadena for a few years and for > this cooperative art studio concept to work I'll need a lot of space. I have > a historic building in mind with 15,000 sq ft of glorious warehouse space- > the landlord is on board with my idea, the rent is good for this expensive > city ($2sf/month), and he will even let me runway the build-out; but no > matter how I finesse my P&L estimates, it's just too dang much rent. (By my > cautious P&L estimate, rent would be 2/3rds of my revenue! One bad month and > I'd be in big trouble.) It didn't occur to me to actually partner with him. > > So here are my questions: > > How does the 50/50 partnership actually work- would I really propose he give > me the space rent-free in exchange for half my revenues? How could I pitch > this to him knowing it will take a year+ to get to capacity and for him to > actually get any revenue? Are there any examples of contracts with landlords > that someone could share? Problems to look out for? (ie: My potential > landlord prefers month-to-month- is that a big risk or a good escape route?) > Finally, I keep reading in this group about nice big spaces in suburbs and > smaller cities with rents that run $2,000 to $5,000, which would cover a > small office here; are there any coworking places that pay more like $20,000 > and up per month and how does that formula work? > > Many thanks for the webinar and the ideas! > > ~Loren > > On Monday, January 12, 2015 at 8:13:30 AM UTC-8, Jerome wrote: > Hi all. > > The webinar is available on the event listing. > http://lexc.org/event/lexc-webinar-joint-ventures-wlandlords/?instance_id=91 > > (link is at the bottom of the page) > > JEROME CHANG > > WEST: Santa Monica > 1450 2nd Street (@Broadway) | Santa Monica CA 90401 > ph: (310) 526-2255 > > CENTRAL: Mid-Wilshire > 5405 Wilshire Blvd (2 blocks west of La Brea) | Los Angeles CA 90036 > ph: (323) 330-9505 > > > EAST: Downtown > 529 S. Broadway, Suite 4000 (@Pershing Square) | Los Angeles CA 90013 > ph: (213) 550-2235 > > > > > > On Jan 9, 2015, at 12:01 PM, Tabari Brannon <[email protected]> wrote: > >> I missed it as well, is there a recording? >> >> On Friday, January 9, 2015 at 12:34:46 AM UTC-8, Ramon Suarez wrote: >> I found out about it too late. Did you guys record it? >> >> -- >> 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. >> To unsubscribe from this group and stop receiving emails from it, send an >> email to [email protected]. >> For more options, visit https://groups.google.com/d/optout. > > > -- > 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. > To unsubscribe from this group and stop receiving emails from it, send an > email [email protected]. > For more options, visit https://groups.google.com/d/optout. -- 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. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. 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