Shared Desk
A shared desk is a non-dedicated workspace in a coworking or flexible office environment, used by different individuals at different times, often on a first-come, first-served basis. It offers flexibility and cost savings compared to traditional office leases.
Key Takeaways
- Shared desks offer flexible, non-dedicated workspaces in coworking environments, appealing to freelancers and small businesses.
- They provide cost savings and networking opportunities for users, avoiding the commitment of traditional office leases.
- For investors, shared desks are part of the growing flexible office market, offering potential for higher yields but also higher operational complexity.
- Understanding the demand for flexibility and efficient space utilization is key to investing in properties that offer shared desk options.
- Revenue from shared desks is typically generated through membership fees, which can be more volatile but also more lucrative than fixed rents.
What is a Shared Desk?
A shared desk, often called a hot desk, is a type of workspace found in flexible office environments like coworking spaces. Unlike a traditional office where one person has a dedicated desk, a shared desk is used by multiple people at different times. Users typically arrive, choose an available desk, and work for the day. This model is popular among freelancers, remote workers, and small businesses seeking flexibility without the long-term commitment and cost of a private office lease.
How Shared Desks Work for Real Estate Investors
For real estate investors, shared desks represent a segment of the flexible office market. Instead of leasing an entire office floor or suite to a single tenant, investors or operators lease a larger space and then subdivide it into various flexible options, including shared desks. Revenue is generated through monthly or daily membership fees from individual users or small teams, rather than traditional long-term rental agreements. This model requires more active property management but can offer higher returns.
Benefits for Investors
- Higher Revenue Potential: Per square foot, flexible workspaces can generate more income than traditional leases due to premium pricing for flexibility and amenities.
- Diversified Tenant Base: Instead of relying on one large tenant, income comes from many smaller members, reducing risk if one member leaves.
- Meeting Market Demand: The shift towards remote and hybrid work has increased demand for flexible, on-demand office solutions, creating new investment opportunities.
Considerations for Investors
- Higher Operating Expenses: Flexible workspaces typically have higher operating expenses due to increased utilities, internet, cleaning, and community management staff.
- Intensive Management: This model requires active property management, including marketing, sales, community building, and daily operations, often more involved than traditional landlord duties.
- Market Volatility: Membership-based revenue can be more sensitive to economic downturns or changes in work trends compared to long-term leases.
Real-World Example
Imagine an investor purchases a 5,000 square foot commercial property for $1,500,000. Instead of finding a single tenant for a traditional office lease, they decide to convert it into a flexible workspace. They allocate 2,000 square feet for shared desk areas, accommodating 40 shared desks. If each shared desk membership costs $250 per month and they maintain an 80% occupancy rate, the monthly revenue from shared desks alone would be (40 desks * 0.80 occupancy) * $250 = $8,000. This is in addition to revenue from private offices or meeting rooms within the same space, showcasing the diversified income potential.
Frequently Asked Questions
What's the difference between a shared desk and a dedicated desk?
A shared desk is a non-assigned workspace, meaning you pick any available spot each time you come in. A dedicated desk, however, is a specific desk that is reserved for you alone, often with lockable storage, providing more consistency and privacy within a shared office environment.
Are shared desks only found in coworking spaces?
While most commonly associated with coworking spaces, shared desks can also be found in other flexible office setups, business centers, or even some corporate offices that adopt a hot-desking policy for their employees. The core idea is the non-dedicated nature of the workspace.
What are the main advantages of shared desks for users?
For users, the main advantages include cost-effectiveness compared to traditional office leases, flexibility to work from different locations or on varying schedules, and opportunities for networking and collaboration with other professionals in the shared environment. It also eliminates the hassle of office setup and maintenance.
How do investors make money from shared desks?
Investors make money by charging membership fees to individuals or companies for access to the shared desk areas and amenities. These fees are typically monthly, but can also be daily or weekly. The goal is to generate higher revenue per square foot than a traditional long-term lease, offsetting the increased operational costs and management intensity.