Thank you Jerome, this is really helpful! I've run a few versions of a P&L with a 50/50, 30/70 and other scenarios that work (or don't) and I have enlisted a commercial agent and attorney to keep me tethered to reality. Now I have to put a pitch together and see what happens. In the mean time, Cross Campus is opening a spectacular location here in a few weeks and I'm looking forward to them introducing coworking to Pasadena!
~Loren On Friday, January 23, 2015 at 11:06:31 AM UTC-8, Jerome wrote: > > 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 > > > <http://www.yelp.com/biz/blankspaces-los-angeles> > <https://twitter.com/BLANKSPACES> > <https://www.facebook.com/pages/BLANKSPACES/132257631339> > <https://www.facebook.com/pages/BLANKSPACES/132257631339> > <http://www.linkedin.com/company/blankspaces?trk=top_nav_home> > <http://vimeo.com/blankspaces> > <http://vimeo.com/blankspaces> > On Jan 21, 2015, at 12:04 AM, Loren Tripp <[email protected] > <javascript:>> 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 >> >> >> <http://www.yelp.com/biz/blankspaces-los-angeles> >> <https://twitter.com/BLANKSPACES> >> <https://www.facebook.com/pages/BLANKSPACES/132257631339> >> <https://www.facebook.com/pages/BLANKSPACES/132257631339> >> <http://www.linkedin.com/company/blankspaces?trk=top_nav_home> >> <http://vimeo.com/blankspaces> >> <http://vimeo.com/blankspaces> >> 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] <javascript:>. > 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. 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