Download this slide presentation aimed at Commercial Office space Asset Managers and Owners, which presents a financial and operating ID of our company, and touches on the type of leases and business models we like to propose to our Landlord-Partners.
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Why partner with Pacific Workplaces?
There is a reason why landlords want Pacific Workplaces to operate a Flexible Office Space in their commercial office buildings: it works! Our presence increases asset valuation, not just by providing a low risk tenancy, but also desirable amenities, business events, and a user experience that improves customer retention within the flexible space, but also in the overall commercial development where our operations are located.
Flexible Office Spaces and Coworking are a key part of the solution to support hybrid work and retain corporate clients that in the past would have used traditional space. CBRE and JLL forecast that coworking and other forms of flexible office space will represent 30% of office building space within a few years, from less than 5% today.
Pacific Workplaces is actively seeking new partnerships with landlords to develop and operate flexible office and coworking spaces, particularly in the West Coast, with space ranging between 10,000 and 25,000 square feet.
The types of spaces that interest us most would include:
- Between 10,000 and 25,000 square feet
- Class A or B Buildings
- Proximity to an amenity-rich environment, with a strong retail component, especially coffee shop(s), restaurants, gym(s).
- Proximity to residential areas with a large segment of the population over $80,000 of annual income
- Proximity to public transportation
- Ground floor, visible at street level preferred (but not necessary)
- 24-hour access
- Landlord’s ability to invest in TI-intensive space
Pacific Workplaces is an operator of on-demand office spaces. We partner with Landlords under Management Contracts, Joint Ventures, or Participating Leases. For a free feasibility study on your building development, please contact us at [email protected] or Laurent Dhollande at (650) 320-7677.
Our business model is strong:
- We have had a healthy business for over 19 years, including weathering two recessions and Covid.
- We are very good at curating user experience, with events that provide great professional value, and often emotional value, to our members. This enables us to claim one of the highest customer retention rates in the industry.
- We have the best geographical coverage in Northern California of any flexible office space provider, including Regus and WeWork. This dense regional network makes us extremely efficient. But we still have room to grow in our backyard market as well as in other areas on the West Coast.
- The best collateral we have is the operation itself, with a well-diversified source of revenue. Most of our locations support several hundred customers each, with profiles ranging from startups to enterprise customers in many different fields. High-tech is the largest customer segment with 24% of our customer base. Legal firms are a close second at 22%. This diversification of our revenue sources, combined with a continuously growing demand is in part what makes it “low risk.”
- Roughly 50% of our revenue stream is counter-cyclical. The other 50% is very price elastic, meaning that we can always maximize occupancy by adjusting our prices. During the Great Recession, we were able to achieve full occupancy but had to lower prices on our full-time office membership fees. That did not stop us from being cash flow positive with EBITDA margins that came down to 12% at the worst point of the recession, prior to quickly coming back to an ~20% equilibrium.
- We are totally transparent with our landlord/partner on our financial and operational track record.
- Our landlord-partners have found Pacific Workplaces operations to be stable and desirable.
- The first Pacific Workplace opened in Pleasant Hill in 1983 under the “Pacific Business Center” brand. We changed the concept over time but the operation is still thriving.
- Our Walnut Creek location opened for business as a shared office space in 1979, long before we took it over from Regus in 2004 and changed the concept to make what was a marginal franchise operation very successful under Pacific Workplaces’ management.
- We opened multiple locations in 2008 and 2009, with deals negotiated right before the Great Recession. Most of these locations are up and running, and thriving: we are Great Recession tested!
- We opened 4 locations in 2022 as we see the post Covid era extremely beneficial to our brand.
- Read this other article, “Should Landlords Increase or Decrease their Exposure to Coworking” or “Should Office Building Owners and Asset Managers Increase of Decrease Their Exposure To Coworking” for our opinion on the future demand of coworking.
A Pacific Workplaces operation is an attractive amenity in a large office building development for many reasons including:
- Seeding future space demand: as smaller tenants outgrow their Pacific Workplaces occupancy, many move in larger space in the same office building development.
- Bringing life to your mixed-use development: Our events bring desirable traffic and entrepreneurial energy to the communities where we operate.
- Access to a central service infrastructure: The service infrastructure we have inside our centers is a valuable amenity available to other tenants in the building (particularly those with occupancy of less than 5,000 square feet) at no incremental cost to landlords. This might include: on-site IT support, network infrastructure management, answering services, mail services, and access to our conference center.
We will perform a free feasibility study for any space that satisfies these criteria.
For more information please contact us at [email protected] or call Laurent Dhollande at 650-320-7677.