The popularity of shared office space and co-working environments has grown significantly in recent years particularly in the tech and creative industries. In the current economic environment it is seen as a flexible solution to entering into long-term rental agreements and an opportunity to network and share resources. In many cases the idea has been extended and it is no longer uncommon to see single desks available on a month to month basis or even more flexible terms.
In the US, the founders of 1776, Evan Burfield and Donna Harris, believe it is the solution to the financial difficulties facing many American start-up companies and could help to stimulate economic growth once more.
1776 is described as a “community hub” for budding entrepreneurs and existing businesses who wish to save on the cost of renting or buying office space by sharing with other companies.
The 15,000 sq ft property, located in an area of Washington D.C. known as the District, will contain a mixture of offices, community spaces and lecture theatres in order to allow a variety of industries to intermingle for a very reasonable price.
Economic development officials in the District have extended a US$200,000 grant to Ms Harris and Mr Burfield to assist in the construction and development of the property. This could be due to the number of start-up technology companies emerging from the area at the present time – which if nurtured and invested in now could bring high revenues to D.C.
1776 is by no means the first start-up hub launched in the area in recent years, yet may end up being the most lucrative with partnership negotiations with local universities and embassies already being conducted.
The hope of the founders is that local educational establishments will choose to base resources there, thus allowing students to work in an educational environment but with access to local start-ups for a little hands-on learning.
However, businesses considering taking the plunge and renting a shared office space would be wise to carefully consider the implications of working in close proximity to multiple different businesses, warns Jonathon Perrelli of Fortify Ventures.
Fortify Ventures established a similar scheme, known as an accelerator, in the District last year after receiving a grant of US$100,000 from city officials. He believes that the financial benefits of sharing a workplace do not necessarily make life easier, as issues such as when to lock up and how much rent each business owes can cause a headache.
He says; “It’s not an undertaking that should be taken lightly, and people really know that if they’ve tried it.”
However, clearly he believes that such working relationships can work, as Fortify Ventures currently shares office space with 1776 – something which the founders of the business claim has made life significantly easier.
Director of Washington D.C.’s business development and strategy, David Zipper, also acknowledges that there is an element of risk when choosing to share office space with a different company, yet argues that in the 1776 scheme will allow a variety of different industries, from technological to educational, to mingle and share resources. He also believes that the property will also make up for a lack of low rent commercial properties in the city.
He says; “1776 addresses a number of needs that no current incubator and accelerator has. That sort of capacity is something we don’t have in the city at all.
“Is there a risk involved? Yes. There always will be in that space.”
Yet he adds; “It’s something that the tech community is very accustomed to.”
Do you provide shared office space or is your company currently sharing with others? What are the advantages and disadvantages? Share your experiences with us below.
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