The way these businesses work is that they rent out meeting and office space to freelancers and subcontractors who want a place to meet with colleagues or clients. Freelancers don’t want to work for corporations, but they still need some of the perks that office work offers, such as a collegial atmosphere and a professional space to meet with clients.
Here are a few reasons why you should consider investing in a business that provides this shared office space:
Growing Base of Freelancers
More and more people are choosing to work as freelancers, which means that you will have a steady base of customers for your shared office space venture. In fact, Canadian Business magazine estimates that we will have a totally freelancer-based economy in just a generation. Already, about 29 percent of Generation Y graduates have chosen to work independently.
Freelancing is not only good for workers who want to have more control over their own careers, but it is also good for companies who need more flexibility in hiring to match the ebb and flow of the business cycle. All that means that you will have a growing body of potential customers, which will keep your shared office space in regular demand.
Less Risk to Customers
Freelancing is a risky proposition for many. Freelancers cannot count on having a steady flow of clients or income. Therefore, they are not as willing to invest in things like permanent office space. They don’t want to commit that much income not knowing if they will actually bring in that much from month to month.
Shared office space provides what they need without the risk. They can sign up for a month or two at a time, and they can stop renting if they hit a slow streak with their business. Since there is no risk for them, they are more likely to invest — which means that your services are more likely to stay in demand.
Less Risk to You
Recruiting permanent office tenants can be tough also. These larger clients tend to be more picky about where they settle since their location will have a big impact on their business. Also, if a larger tenant doesn’t pay, you can be locked into a contract that will require a lot of money and legal maneuvering to get out of.
Working with freelancers reduces your risk. If one doesn’t pay, you are out a month’s rent and can easily replace the spot with another freelancer. You also don’t have to work as hard to attract freelancers since location is often not as important to the success of their work.
Take advantage of this great investment opportunity now while it is still a growing trend. In a few years, you’ll be well-positioned as a leading provider.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.