Brace yourself for radicality. :-) I have one space which is a sharing arrangement with a landlord (sorry, the words joint venture and partnership make me twitch, as I am a lawyer and those words have specific meanings to us, and this is not that) and one which is a shop-in-shop arrangement with an executive office/flexoffice. I hope to be launching two more in the first quarter 2015. One is with one of my coworkers who graduated to a larger space, the other is with another flexoffice.
The arrangement in both is that I handle the coworking, they make the space available and open the door, I pay the costs from the income and then we split what is left. The splitting varies, in one location it is half, in the other it is 80/20 (their favor). Certain charges they get 100% of, they are the ones for which I don't do anything. For the Executive office, if a coworker steps over to a permanent rental or virtual office, I get the first month's rent. This requires a landlord who is already on site, not a landlord who is getting paid for an empty building. An existing business with extra space is perfect. It als requires a landlord with a gambling turn of mind (less money in the beginning, more at the backend). Getting the model right and the sharing right has been....an adventure. :-) But at this moment I am feeling very good about its sustainabliity. I have a contract lying here, it is in Dutch. i think i may have one lying around which I made up for a space in Italy that didn't go anywhere, if you want me to dig it up let me know. (Shameless plug: I am actively looking for partners in Europe and the UK. The Dutch love to do business overseas). It is a long term contract but has a 30 day termination clause for any reason, because everybody is afraid of a new model and wants an out if it goes south. And it's a principle thing with me, I am for no-fault divorce and no fault termination of contracts usually. :-) Fire away. Cheers, Jeannine On Wednesday, January 21, 2015 at 9:04:57 AM UTC+1, Loren Tripp 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 to [email protected]. For more options, visit https://groups.google.com/d/optout.
