Greater Philadelphia Tech Knowledge workers cluster in ...f.tlcollect.com/fr2/715/33186/Philadelphia... · with culture and personality. First coined by game designer and theorist

VIEWPOINT

Greater Philadelphia Tech

Knowledge workers cluster in dynamic spaces

TECH VIEWPOINT

VIEWPOINT GREATER PHILADELPHIA TECH

©2015 CBRE, Inc. | 2JUNE 2015 CBRE Research

Ian Anderson

Director of Research and Analysis

Lauren Koshgarian

Senior Research Analyst

• Asthenatureofworkgetsredefined,manyprofessionalsareleavingbehindtheformalofficeenvironmentandembracingmobilework.

• Inthepastdecade,thenumberofcoworkingspacesintheU.S.hasskyrocketedtomorethan780.

• Whatbeganasatechstartupcommunityhasnowevolvedtoservefreelancers,contractemployees,telecommuters,andcorporatetravelers.

• Coworkinglocationsarepoppingupandgrowingacrossthecountry,fromruralareastolargemetroareas.Risingoptionsofnewcoworkingcenterseachyeararecreatingahigherrateofmobilityamongmembers.

• Millennialsareattractedtocoworkingforitsflexibility,informalculture,andlowbarriertoentry.

• Therearecurrently22coworkingspacesopenorunderconstructioninPhiladelphiatoday.Together,theyencompassroughly264,000sq.ft.ofcommercialofficespace.


©2015 CBRE, Inc. | 3JUNE 2015 CBRE Research ©2015 CBRE, Inc. | 3

STATISTICS

• 70%ofcoworkingfacilitatorsreportedthattheavailabilityofdeskspacecouldn’tkeepupwiththedemand.

• 60%ofexistingcoworkingofficeswereslatedtoacquirenewspacein2014.

» Oneinfiveplantoexpandonexistinglocations.

» Oneinthreeplantoopenadditionallocations.

» Onein11areconsideringmovingintolargerworkspaces.

• 90%ofcoworkinghubsexpectedtoincreasetheirmembershipsin2014withonequarterforecastingasignificantincrease.

• Ittakesonaveragesevenmonthsforacoworkingspacetodevelopandopenitsdoors.One-thirdoflocationsopentheirdoorsinjustthreemonths.

• MostcoworkingspacesarefoundedinSeptember,October,andJanuary.

WHO USES COWORKING?

Independentprofessionals,startups,designers,entrepreneurs,coders,smallbusinessowners,salesreps,photographers,freelancers,telecommuters,andartists.

Figure 1: Rising Number of Coworking Spaces

Source: 2014 State of Independence in America Report, MBO Partners.

0

500

1,000

1,500

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2006 2007 2008 2009 2010 2011 2012 2013



Like-minded individuals coming together to work in the same space builds communities with culture and personality.

FirstcoinedbygamedesignerandtheoristBernieDeKovenin1999todescribecomputer-assistedcollaborativework,coworkingspacesaremember-supported,sharedworkenvironmentswhereentrepreneurs,artists,contractors,andprofessionalsworksidebysideonindividualprojects.Professionalswhowouldhaveformerlycampedoutincoffeeshopsorworkedfromhomearenowembracingthisnewdynamicworkspacemodel.

Foundedonasimpleintention,ithasbecomeapowerfulandsocially-changingphenomenon.Bettercreativespaceshavebecomebettercreativewaystowork.Asthenatureofworkgetsredefined,manyprofessionalsareleavingbehindtheformalofficeenvironmentandembracingmobileworkinthesechosencommunities.Theopenfloorplanencouragesconversationsandnetworking.Themembershipscreateopportunitiesfornewsmallbusinessownerstojoinandgrownewopportunitiesforconnectingandinteractingwithentrepreneurseachday.Inthisenvironment,entrepreneursbecomecollaborators.

Inthepastdecade,thenumberofcoworkingspacesintheU.S.hasskyrocketedtomorethan780since2005.1From2012to2013,thisnumberincreased83%andcoworkingmembershipsincreased117%.Asof2013,morethan110,000peopleworkin2,500coworkingcentersgloballyandtherewasanaverageof4.5newcoworkingspacesopeningperday.Onaverage,thenumberofmembersincreasedby245peopleeachday.2

Partofaglobalmovement,thesecollaborativespaceshavetrickleddowntothelocalcommunity.Like-mindedindividualscomingtogethertoworkinthesamespacebuildscommunitieswithcultureandpersonality.Creativeprofessionalsandknowledgeworkers3areablefindflexibleworkspacesthatfittheirpersonalityandareacommunitytheycanconnectwith.Theseprofessionalshavefoundthataflexiblespacefilledwithmemberswithsimilaroroverlappinggoalscanleadtogreatthings.

Fromthebeginning,coworkinghascreatedafocusoncollaboration,community,accessibility,andsustainability.Wehavewitnessedittakeshapeandexplodeintoaninternationalbusiness.Althoughthemovementisstillinitsinfancy,thecoworkingmarketismaturing.Lastyear,only

1 “Number of Coworking Spaces Has Skyrocketed in the U.S.,” Inc.com, 3/3/2014.2 “4.5 New Coworking Spaces Per Work Day,” Deskmag, 3/4/2013.3 Wedefine“KnowledgeWorker”asapersonwhoisengagedintheacquisition,analysis,orhandlingofinformation.



40%ofcurrentcoworkingspaceswerelessthanoneyearold.4Atthesametime,thenumberofprofessionalsseekingcoworkingspacehascontinuedtooutweighavailability.

Coworkingisrevolutionizingtheconceptofofficeworkspace.Overthepastdecade,incubators,accelerators,innovationcenters,universitylabs,collectives,corporatevirtualoffices,andevencoffeeshopshavecontributedandledtothisnewworkspaceoperatingmodel.Whilethesehubsaimtodrivegrowth,profit,andjobcreationforbusinesses,coworkingdoesthatbutalsocaterstoindependentcontractors,freelancers,andsoloentrepreneurs.Thisinnovativeentrepreneurialcommunityhascreatedanddrivenanewcollaborativeecosystem.TenyearssincethestartofthefirstcoworkingspaceintheU.S.,weareseeingtheimpactofthesecoworkingcentersonmainstreamcorporateoffices.Today,moderncorporateworkplacesencompassWi-Fi,greaterbroadband,mobiletechnology,andBYOD(bring-your-own-device),profoundlyinfluencingworkplaceflexibility.Ithasallowedworkerstoroammorefreelywithinheadquarters,poparoundtodifferentofficelocations,andevenworkfromhome.FromstartupstoFortune100companies,workersacrosstheworldarefindinganewformofmobilityandcollaboration.

Figure 2: Space Use Overview

Type of Work Environment

Target Market Created and Founded By Mission / PurposeTypical Economic Structure

Accelerator Entrepreneurs, startups Universities,publicsectorandprivate groups

Launch ideas to market, provide mentorships, provide education

Public-PrivatePartnership,Non-profits,For-Profits

Coworking Center Startups,freelancers,entre-preneurs

Private groups, private individ-uals,startups

Collaborativework,socialbenefits,educationalbenefits

For-profit,cooperative,andnonprofit

Innovation Center Entrepreneurs, startups Corporations, private groups, venturecapitalists

Accesstocapital,stimulateideasandinnovation,launchideas to market

For-profit,public-privatepartnerships

ExecutiveSuitesandVirtualOffices

Corporations,smallbusinesses Corporations, private groups Access to business support servicesandsatelliteofficelocations

For-profit

Source:WorkplaceInnovationandItsOrigins,NAIOPResearchFoundation,2013.

Inthe1980s,companieslikeRegusbeganofferingexecutivesuiteofficestoindividualbusinesseswheretheseclientssharedasecretaryandaconferenceroom.Duringthattime,thesefirmsworkedseparatelyandengagedverylittlewitheachotherinthephysicalofficespace.Incontrast,today’scoworkinghubsuniteworkersinaspacethatfostersculture.Regusiscurrentlyenhancingtheirmodeltoprovidecoworkingalternativesinselectmarkets.Deepenthusiasmforcollaborationandinnovationarereflectedinencouragingworkerstocrosspaths,mergeefforts,andcontributetothegreatertechandbusinesscommunityinthePhiladelphiaarea.

4 “TheCoworkingForecast2014,”Deskmag,1/27/2014.



Coworkinghubsprovideaccesstospacerentals,conferencerooms,andbusinesssupportservices,allowingentrepreneursandsmallcompaniestocreateaprofessionalimageonasmallbudget.Thisinturnencouragesmemberstofocusoninnovation,clients,andcreativityinsteadofthedetailsoffinancingandoutfittinganofficespace.Coworkinghubshelpcompaniesonapathfrompotentialandsustainabilitytoprofitandgrowth.Withacombinationofprivateworkareasandnetworkingbenefitstuckedinsideanopen-planoffice,membersareabletoworkindividuallyorcollectivelyandbecomeconnectedtoalarger,dynamicbusinessenvironmentandultimatelyabusinesscommunity.

T YPICAL AMENITIES AND SPACE CHAR ACTERISTICS

• Mixofcollaborativeworkstations,privateoffices,andmeetingrooms

• Kitchensorkitchenettesofferingcoffeeandsnacks

• High-speedInternet

• Plentyofnaturallight

• Interestingarchitecturalattributes(barndoors,crownmolding,cementfloors,exposedwoodenbeams)

• Interestingfurnitureanddecor(curtains,couches,coffeetables)

• Neighborhood/proximitytoacoffeeshoporcafé

• Printer/copier

UPGR ADED AMENITIES

• 24/7securebuildingaccess

• Lobbyorcheck-inareaforreceptionandguests

• Eventspaces

• Socialandlearningevents

• Personalstoragelockers

• Audio/visualsystems

• Whiteboards

Coworking is revolutionizing the concept of office workspace.

JUNE 2015 CBRE Research ©2015 CBRE, Inc. | 7


• Phoneboothsforpersonalorconfidentialcalls

• Bikestorage

• Mailservices

• Recreationalorrelaxationareas(TVareawithvideogames,hammocks,patios,pingpongtables,etc.)

COWORKING MEMBERS

Inthesezones,coworkersbecomecommunityworkers.Itisnotjustaboutcohabitatingsharedofficespace.Itisaboutbridgingtalentwiththebroadercommunity.Opportunitieshavebecomespacesandviceversa.Theycangrowandleadtosuccessesforsmallbusinesses,entrepreneurs,andultimatelyacityanditssurroundingregion.Whatbeganasatechstartupcommunityhasnowevolvedtoservefreelancers,contractemployees,telecommuters,andcorporatetravelers.5

Between2009and2012,thenumberoftemporaryemployeesroseby29%.6Muchofthisisoftenattributedtotheeconomicdownturnbutwealsoseethisasadrivingtrendforthefutureofwork.In2014,therewere17.9millionindependentworkersintheUnitedStates.Thisisupfrom15.9million(12.5%)in2011andthenumberisexpectedtoreachto24.9millionby2019.Lastyear,morethan$1.1trillionoftotalrevenuewasgeneratedbyindependentworkers.Approximatelyonein12U.S.households(morethan10million)relyonindependentworkformorethanhalfoftheirincome.

Figure 3: Number of Independent Workers


5 “WorkplaceInnovationandItsOrigins,”NAIOPResearchFoundation,2013.6 “40%ofAmerica’sWorkforceWillBeFreelancersby2020,”Quartz,3/20/2013.

0

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10

15

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30

2011 2014 2019

(Mill

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)



AccordingtoMBOPartners,40%ofworkingAmericansreporthavingspentsometimeasindependentworkers.Coworkingprofessionalsidentifythisformofworkenvironmentandnetworkingopportunitiesasadvantagesoverthetraditionalwork-from-homescenario.Here,thespaceencouragesexchangeswithotherprofessionalsofdiversetalents,focuses,andbackgrounds.Theseworkerscanprovideinputandinsightsthatmightotherwisehavebeenunavailabletoprofessionalswhoworkedathomeorincoffeeshops.Itisestimatedthatby2020,40%ofthepopulationwillbeindependentworkers.7

Figure 4: Generations of Independent Workers


Forasuccessfulcoworkingspace,vision,values,andtrustneedtoalign.Mostcoworkingmembersarefreelancers,entrepreneurs,andsmallfirms.8Themajorityofcoworkingmembersreportthatnetworking,socialinteractions,andcommunityatmospherearetheirprimaryselectioncriteriaforchoosingacenter.Facilitiesandgeographiclocationwerefurtherdowntheirlistofpriorities.9

Coworkingcommunityspacesareshapedbyitsmembersandgroupneeds.Coworkinghubsandmembershipplansareselectedbymembersbasedontheirindividualneeds.Planscanrangefromadaypasstoafull-timeofficeandtypicallyincluderefreshments,aworkstation,andhigh-speedInternet.Coworkingmemberscanalsoreserveconferenceroomsforbusinessmeetings.Tobeginthemembershipprocess,professionalsusuallygetatourofthespace,meetcurrentmembers,andapplyorsignupforanacceptance.Althoughitisaflexibleandmostlyinformalprocess,potentialmemberscanexpectsomeformalapproachesinthebeginning.Forinstance,somespacesrequireatrialperiodorvouchersfromcurrentmembers.

7 “WhattheCorporateWorldCanLearnfromCoworking,”WorkDesignMagazine,3/19/2015.8 “WorkplaceInnovationandItsOrigins,”NAIOPResearchFoundation,2013.9 Ibid.

Millennials (21-33) 28%

Gen X (34-49) 29%

Baby Boomers (50-67)

29%

Matures (68+) 14%



Figure 5: Types of Coworking Members

WHY MEMBERS JOIN COWORKING10

• Flexiblealternative,bothfinanciallyandprofessionally

• Increaseprofessionalvalueandnetworking

• Strengthenvisibilityandsmallbusinessinitiatives

• Communalbenefits

THE BENEFITS11

• 70%ofcoworkingmembersfeelhealthierthantheydidworkinginatraditionaloffice.

• Roughly90%ofcoworkersreportanincreaseinself-confidence.

• 62%saidtheirstandardofworkimproved.

• 71%reportaboostincreativity.

• 50%ofallcoworkersaccesstheirworkspacearoundtheclock.

• 68%reportedtheywereabletofocusbetter.

10 “TheFutureofCoworkingandWhyItWillGiveYourBusinessaHugeEdge,”FastCompany,1/15/2013.11 Ibid.

Freelancer 49%

Entrepreneur with

employees 13%

Employees of companies with 5 or

less people 17%

Employees of companies with 6-99 people 8%

Employees of companies with 100 or more employees 6% Other

7%

Source:MakingSpaceforOthers,KatyJackson,February2013.



Asoflastyear,70%ofcoworkingmembershaveremainedattheirfirstcoworkingspaces.However,futureestimatesshowthatthisnumberwilllikelylowerandcoworkingprofessionalsarelesslikelytoremainatunsatisfactoryworkspaces.12Thisisduetotheincreasingavailabilityofnewcoworkingcenterseachyear,creatingahigherrateofmobilityamongmembers.Coworkinghubswithhighratings(andnaturallyahighernumberofmembers)managetoholdontomorethanone-thirdoftheirmemberseachyear.Attheselargercoworkingspaces,professionalsresidetherelongerthanaverage.

Locally,smallbusinessgrowthisthekeytoanycity’ssuccessandPhiladelphiaisnoexception.CompanieslikeArcweb,Cloudmine,andSnipSnapallgrewoutofcoworkingspacesinPhiladelphiaandarenowsuccessful,emergingfirms.Nationally,oneinsevenindependentworkers(2.5million)plantobuildbiggerbusinessesinthefuture,andthisreflectsthatcoworkingspacesfosteringindependentworkerscangrowandsustaincompaniesandmovethemfromthestartupstagetoafull-fledgedbusiness.

Therearecurrently22coworkingspacesopenorunderconstructioninPhiladelphia.Together,theyencompassapproximately264,000squarefeetofcommercialofficespace.13AlthoughthisaccountsforlessthanonepercentofthetotalofficeinventoryinPhiladelphia’scentralbusinessdistrict,itisanemergingmarketandatransformativebusinessmodel.PleaseseeourfulldirectoryofPhiladelphiacoworkingspacesattheendofthisreport.

FUNDING AND OWNERSHIP.

Mostcoworkinghubsarefor-profit,butthereareafewnonprofitandcooperativespacesaswell.Themajorityofindividualorprivatecoworkinghubsrelyon“bootstrapping”(fundingfromafounder’sequity)tofinancetheiroperations.Coworkingcenters,onaverage,have2.8founders.Largerspacesthatcanholdmorethan50coworkingprofessionalshaveanaverageoffourfounders.14Seventy-fourpercentofcoworkingspaceoperatorsholdasecondjob.15In2012,theaveragecosttoopenacoworkinglocationwasapproximatelybetween$45,000and$58,000.16Multi-locationcoworkingcenters,whichhavehigherrevenuesandhighercostsofoperations,oftenobtainoutsideequityinvestors.

FOUR T YPES OF COWORKING OWNERSHIP 17

• IndividualOwners

• Startupfoundersseekingfellowentrepreneursandinnovators

• Third-PartyOperatorsandIntermediaries

• PropertyOwners

12 “TheCoworkingMarketReportForecast,”DeskMag,1/27/14.13 “Innovating Innovation: Coworking’s Second Wave,” Region’s Business, 3/25/2015.14 “The Birth of Coworking Spaces,” Deskmag, 11/18/2011.15 “HowProfitableAreCoworkingSpaces,”Deskmag,11/23/2011.16 “WorkplaceInnovationandItsOrigins,”NAIOPResearchFoundation,2013.17 Ibid.



Coworkinghubsusuallyhaveacultureandatmospherethatreflectseitherthefoundingmembersorthetargetmarket.LocalexamplesincludeTheHivePhilly,dedicatedtowomen,andCityCoHo,withafocusonsustainabilityandgreencoworking.Seventy-ninepercentofcoworkinghubsarelocal,individualoperations.Multi-locationfranchiseslikeNextSpaceandWeWorkaccountforlessthan10percentofcoworkingspaces.18Somemultisitecoworkinghubsoffermembersaccesstootherlocationsintheirnetwork.

Coworkingspacesneedtobeadaptableandself-sustaining.Currentandpastcoworkingcentersshouldbemodelsofinnovationtolearnfrom.Theorganiceffortsmadebytheselocationsandentrepreneursareshapingthewaylargeandsmallcompanieswork.Today’sopen,collaborative,andmobilecorporateworkenvironmentmaynothavelookedthesameifitwerenotfortheseinnovators.

COWORKING CHALLENGES

• BrandingandAwareness

• ValueProposition

• Differentiation

• Competition

• BusinessModel

COWORKING DRIVERS AND BENEFITS

• Globalization

• GrowingFreelanceEconomy

• FlexibleandMobileTechnology

• TheSharingEconomy(Bicycles→Cars→Workspace)

• Collaboration

• AvoidingFixedCosts

Successfulcoworkingspacesfocusongrowthandequippingthelocationasmembershipincreases.Fromhostingspecialsocialeventstoupgradingfurnishings,thespaceneedstoprovidedifferentiationinordertogaininterestfromindependentprofessionals.Tokeepthingsfresh,manycoworkingspaceswillhostspecialeventsprograms.Thesecanincludedemosofprojectsthatentrepreneursareworkingon,includingnewvideogamesornewapps,andtheycanalsoincludeskill-sharingeventsandclasses,rangingfrommarketingtobeer-making.19Thesekindsofeventsleadtohighertenancyandultimatelymorefinancing,whichleadsbacktomoreamenities,differentiation,andmoremembers.20

18 Ibid.19 “TheFutureofCoworkingandWhyItWillGiveYourBusinessaHugeEdge,”FastCompany,1/15/2013.20 “WorkplaceInnovationandItsOrigins,”NAIOPResearchFoundation,2013.



MILLENNIALS

Millennials,likestartups,areattractedtocoworkingforitsflexibility,informalculture,andlowbarriertoentry.21Thisgeneration,aboveallothers,valuestheflexibilityandinnovationofindependentworkandentrepreneurship.Millennialsmakeup28%oftheindependentworkersintheU.S.22AccordingtotheKauffmanFoundation,54%ofthenation’sMillennialshavestartedabusinessorwanttostartabusiness,furtherreflectingthattheflexibilityandownershipoffreelancingappealstotheseyoungworkers.23Seventy-ninepercentofmillennialswouldconsiderquittingtheirregularjobandworkingforthemselvesinthefuture.24

Coworkingspacesarealsoprovingtobealabinsomecasestobetterunderstandthisgeneration.In2013,StateFarmInsuranceopenedtheirChicago-basedNextDoor“freemium”coworkingspaceasawaytounderstandthemillennialconsumer.Let’schangethistothepresenttense.AtNextDoor,freelancerscanworkindependently,takeclassesonwritingbusinessplansoronsocialentrepreneurship,andmeetwithfinancialcoachestodiscussretirementplanning.Thecompanyprovidescoworkingatnochargeasawaytoencourageamorenaturalinteractionbetweenyoung,independentworkersandthelocalcommunity.25

AccordingtoStaffingIndustryAnalysts,theonlineworkindustryis$1billiontodayandexpectedtoreach$5billionwithinfiveyears.26Coworkingcentershaveadifferentoperatingmodelandprinciplesfromotherbusinessservices.Unlikeotherareasofbusiness,coworkinghubspublishtheirpricesandtheydonotrequirelongcontracts.Seventy-twopercentofcoworkingcentersareprofitableaftertwoyearsinoperation.27Forprivately-runcoworkingspaces,87%areprofitableaftertwoyears.Coworkinglocationswith10to49membershaveaprofitabilityrateofroughly40%.Forsmallerlocationswithlessthan10members,56%reportaloss.Only25%ofsmalllocationsseeadirectprofit.However,manyofthesesmallerlocationsarenewandneedtimetodeveloptheirmembership,brand,andbusinessmodel.Naturally,themoremembersaspacehas,themoreprofitabletheyare.Themajorityofrevenueisderivedfromrentingoutworkspaceatdesks(61%)andabout10%ofrevenueisgeneratedfromrentingoutconferenceroomsandeventspaces.

21 “WorkingAlone,Together,”TheRealDeal,4/23/2015.22 “State of Independence in America Report,” MBO Partners, 2014.23 “MillennialsandtheFutureofWork,”Elance-oDesk,4/23/2013.24 “The2015MillennialMajorityWorkforce,”Elance-oDesk,10/22/2014.25 “WorkplaceInnovationandItsOrigins,”NAIOPResearchFoundation,2013.26 “MillennialsandtheFutureofWork,”Elance-oDesk,4/23/2013.27 “HowProfitableAreCoworkingSpaces,”Deskmag,11/23/2011.



LOCATIONS, PROPERTIES, AND GLOBAL EXPANSION

Acommontrendamongcoworkingisthetransformationof“old”spacesintoartistic,open-conceptinnovationzones.28

F IGURE 6: COWORKING C YCLE

Historicfactoriesandindustrialbuildingsarebeingrevampedandredevelopedwithmeaningfulchange,creatingalastingsocialimpactontheirsurroundingareas.Thesecoworkingspacesinhistoricbuildingsarere-envisioningwhatanofficecan,should,andneedstolooklike.Manylocationshavefoundthatwhenthesebuildingsarerevitalizedintothoughtfullydesignedspaces,theneighborhoodismotivatedtohelpinitsdevelopmentandsupportthecoworkinghuboperatinginsidetheircommunity.

Coworkinglocationsarepoppingupandgrowingacrossthecountry,fromruralareastolargemetroareas.29Inourresearch,wehavefoundthatsuburbanandruralcoworkingdifferconsiderablyfromurbanlocations.Forsuburbanandruralcoworking,manymembersthatjoindonotcurrentlyworkinthoseareas.Instead,thesecoworkingspaceshelpbringmuchneededfoottrafficintotheareaandhelpboostthesurroundinglocalbusinesses.Ruralcoworkingspacesoftenfinddifferentiationandvaluepropositioninthattheyarefrequentlytheonlylocationoperatinginawidergeographicarea.Forthisreason,membersheretendtobemore

28 “OldSpaces,NewIdeas,”Deskmag,6/5/2013.29 “WorkplaceInnovationandItsOrigins,”NAIOPResearchFoundation,2013.

Culture and Differentiation

Amenities

Tenancy

Financing

Source: CBRE Research, 2015.



loyal.30Thisisincontrasttocities,whereonaverage75%ofcoworkingspacesreporthavinganothercompetitornearby.Alittlemorethanhalfofruralcoworkinglocationshaveplansforexpansions,comparedwith75%ofurbancenters.

Intermsofglobalexpansion,mostcoworkingspacesarestilllocatedintheU.S.(781),aheadofGermany(230),Spain(199),GreatBritain(154),andJapan(129).EuropeancoworkingcentersaregrowingmoresteadilycomparedtoNorthAmerica,butweestimatethatthisisbecausetherearemorepeoplelivinginEuropethanintheU.S.andCanada.31Themostglobally-renownedcoworkingcenterintheworldisImpactHub,with62locationsacrossfivecontinents.Fortheglobe-trottingindependentprofessional,aCoworkingVisaisanattractiveprogramthatallowsmembersfromonecoworkinghubtouseothercoworkinglocationsaroundtheworldforfreeforonetothreedays.

Coworkingbringsindividualcontributionsintothelocalbusinesseconomyandthesmallbusinessecosystem.Ittransformsideasandinnovationsintoproductsandpractices.Itgrowswhatwouldotherwisebesolitaryentrepreneursintosocially-aware,networkedprofessionals.Ithelpssupportstartupsandacreativeculturefordrivingvalue,sustainability,andgrowth.

Overthepastdecade,wehaveseenthetransformationofprivateofficespace.Inthepast,aclean,largeofficewithmanydefinedandtightlycontrolledareaswasthestandardforbusinesses.Now,companiesofallkindsareseekingoutrevitalizedpropertieswithindustrialbonesformoreopen-conceptspaceandcollaborativeconcepts.Whatwasfirstseenasenvironmentallyoreconomicallyinfluencedisnowtransformingintothenewnorm.

Althoughthecoworkingmarketisstillinitsinfancy,thesocioeconomicshiftsarealreadycreatingripplesamongindependentworkingprofessionals.Asmoreandmorefreelancersandtravelingprofessionalsseeknewandinspirationalplacestowork,theamenities,locations,andspaceswillreflectthisdemandanddriveutilizationupward.Workersarebecomingconsumersinthemarketplaceofworkspaceasmorechoicesariseandmorespacescontinueopeningtomeetthedemand.

30 “CoworkingComparedinLargeCitiesandSmallTowns,”Deskmag,9/5/2012.31 “4.5 New Coworking Spaces Per Work Day,” Deskmag, 3/4/2013.

Coworking transforms ideas and innovations into products and practices.



Benjamin’s Desk

Address:1701WalnutStreet,Philadelphia,PA19103

Founded:2012

Founders: AnthonyMaher,MichaelMaher

Size:6,000sq.ft.

Website:http://benjaminsdesk.com/

Description:SituatedinRittenhouseandmanagedbyhusband/wifeteamMichaelandJenniferMaher,this6,000sq.ft.workspaceofferssevenlevelsofmembershipinthehistoricAllmanBuilding.Currently,theyhaveplanstoaddanother100,000sq.ft.overthenexteighteenmonthswitheighttotenmorelocationsaroundPhiladelphia.Benjamin’sDeskmembersincludelegal,realestate,education,entrepreneurs,andtechnologyprofessionals

Camden CoLab

Address:200FederalSt,Suite300,Camden,NJ08103

Founded: 2014

Founders: RutgersUniversity

Size:25,000sq.ft.

Website:http://www.camdencolab.com/

Description:LocatedonthethirdflooroftheWaterfrontTechnologyCenter,aLEEDSilverbuildingontheCamdenWaterfront,CamdenCoLabprovides24/7coworkingaccessandfree,securedparking.TheyalsoprovideaccesstoRCTCandACINincubationservices,administrativesupport,andcommunityandbusinessdevelopmentprogramming.Otheramenitiesincludeacommunitymanageronstafftohelpplanevents,bicycleparking,andeasyaccesstoPATCOandtheNJRiverLine.

The Cedar Works

Address:4919PentridgeSt,Philadelphia,PA19143

Founded: 2012

Founders: AndyPfeifer,LinfordMartin

Size: 15,000sq.ft.

Website:http://thecedarworks.com/

Description: Locatedina15,000sq.ft.reclaimedwarehouseintheCedarParkneighborhoodofWestPhiladelphia,CedarWorkshas22artistworkspacesandprofessionaloffices.Thereisalsoacommunityconferencespaceformeetings,trainings,andworkshops.Walk-insareavailablebyappointment.Thecommunitymeetingspaceisnotavailableforpartiesorperformancesduetozoninglimitations.

CityCoHo

Address:2401WalnutSt,Philadelphia,PA19103

Founded: 2014

Founders:DrewFoulkes,MaxZahniser

Size:13,000sq.ft.

Website: http://citycoho.com/

Description: Focusedonsustainabilityandsustainableprofessionals,CityCoHoislocatedat2401Walnut,whichhasundergoneanextensivegreenrenovationincludinghighperformancewindows,newmechanicalsystems,andagreenroof.BoththebuildingandthecoworkingspacesarepursuingLEEDPlatinumgreenbuildingcertifications.

PHIL ADELPHIA COWORKING DIRECTORY



Culture Works

Address:1315WalnutSt,Suite320,Philadelphia,PA19107

Founded: 2010

Founders:ThaddeusSquire

Size:4,745sq.ft.

Website: http://www.cultureworksphila.org/

Description: LocatedinCenterCity,CultureWorksisacoworkinghubforarts,nonprofits,andcreativeprofessionals.ThecommunityfeaturesartinstallationsfrommemberartistsanddesignfeaturesfromPhiladelphiaHistoricLandmarks.Thespacealsoincludesakitchenwithstate-of-the-artbrewingdevices.

Dream Factory

Address: 214BridgeSt,Phoenixville,PA19460

Founded: 2013(Rebrandedin2015)

Founders: PatrickDobslaw(originalfounderwasShannonCoghlanReis)

Size: 3,000sq.ft.

Website: http://phoenixvilledreamfactory.com/about/

Description: DreamFactoryprovidesdeskspaceandprivateofficesforadiversegroupofcoworkingprofessionalsintheheartofPhoenixville.LocatedjustdownthestreetfromthehistoricColonialTheatreandinproximitytorestaurantsandshops,DreamFactoryisa3,000squarefootspacethatcanfittwentytotwenty-fivecoworkers.

The Fire Works

Address:701S50thSt,Philadelphia,PA19143

Founded:2014

Founders: LinfordMartin

Size:2,000sq.ft.

Website:http://thefireworksphilly.com/

Description:LocatedonthethirdflooraboveSatelliteCafé,DockStreetBrewery,andFirehouseBicycles,TheFireWorksprovides2,000sq.ft.ofspacewithroomfor40coworkers.Thecommunityfeaturesaconferenceroom,asmallmeetingroom,andfourlevelsofmembershipoptions.Originallyenvisionedasahubforartistsseekingstudiospace,membersalsoincludewebdevelopers,activists,andeducators.

HeadRoom

Address:24VeteransSquare,Media,PA19063

Founded: 2014

Founders:DanLievens,ErinLievens,JohnTooher

Size: 3,000sq.ft.

Website: http://headroom.net/

Description: LocatedonStateStreetinMedia,PA,HeadRoomprovidesavarietyofworkspacesforentrepreneursandprofessionals.Thecommunityisinproximitytorestaurants,shops,smallbusinesses,andthelocaltrainstation.HeadRoomhasonepackageforallmembers,providing50hoursofofficeusefor$300permonth.

The Hive Philly

Address:222RaceSt,Philadelphia,PA19106

Founded:2014

Founders:MelissaAlam

Size:900sq.ft.

Website:http://thehivephilly.com/

http://phoenixvilledreamfactory.com/about/

http://phoenixvilledreamfactory.com/about/



Description: AsPhiladelphia’sfirstcommunitydedicatedtofemalecoworking,this900sq.ft.hubinOldCityprovidesmonthlynetworkingeventsandworkshopsheldbymembersandlocalprofessionals.Locatedinthemiddleof2ndand3rdStreetsonRaceStreet,TheHiveemphasizesfemalebusinessownersandthestartupcommunity,aswellasprofessionalsfromemergingfirmsandwell-establishedcompanies.

Impact Hub

Address:1227N.4thSt,Philadelphia,PA19122

Founded: 2014(Philadelphialocation),2005(Londonlocation)

Founders:JeffShiau(Philadelphialocation),RichardEvans(Londonlocation)

Size:28,000sq.ft.

Website:http://philadelphia.impacthub.net/

Description:ImpactHubisagrowing,globalcoworkingcommunity.Eachlocationisindependentlyownedandoperated,butsharebrandingandback-officefunctions.ItsPhiladelphialocationisoneof70othercitieswithatotalof10,000members.LocatedinsideaformerindustrialwarehousejustnorthofGirardAvenue,memberscanattendeventshereaswellasotherImpactHubsforfree.

Industrious

Address:230S.BroadSt,Philadelphia,PA19102

Founded: 2013(inChicago)

Founders:JustinStewart,JamieHodari

Size:21,000sq.ft.

Website:http://www.industriousoffice.com/

Description: IntheheartofCenterCityatBroadandLocustStreet,IndustriousrecentlyopenedinMaywith21,000sq.ft.ofofficeand

collaborationspaces.ItsflagshipcommunityislocatedinChicagoanditsfoundersarebasedinNewYorkCity.Thetwo-floorPhiladelphiahuboverlookingtheBellevueprovides37privateofficesandtencoworkingseats,aswellaseveninglecturesandevents.

Indy Hall

Address:22N.23rdSt,Philadelphia,PA19106

Founded:2007

Founders:AlexHillman

Size:13,000sq.ft.

Website: http://www.indyhall.org/

Description: Foundedin2007,IndyHallisoneofthelongestcontinuouslyrunningcoworkingspacesintheworld.Thistwo-storycoworkinghubwasthefirstinPennsylvaniaandfeaturesfourlevelsofmembership,aswellasonlinecommunitychatroomsandfieldtripeventsthroughoutPhiladelphia.

Innovation Center

Address: 3401MarketSt,Philadelphia,PA19104

Founded: 2014

Founders:DrexelUniversity

Size:17,500sq.ft.

Website:https://www.sciencecenter.org/programs/ic3401

Description: TuckedinsideUniversityCity’sInnovationDistrict,theInnovationCenterisanincubatorfoundedbyDrexelandtheUniversityCityScienceCenter.The17,500sq.ft.hubopeneditsdoorslastyearandprovidescoworkingspacepairedwithprivateofficesandasharedconferenceroom.



Pipeline

Address:TheGrahamBuilding,30S15thSt,15thFl,Philadelphia,PA19102

Founded:2015

Founders: ToddOretsky(Miami),PhilippeHoudard(Miami)

Size:14,000sq.ft.

Website:http://www.pipelineworkspaces.com/

Description: Pipelineisahigh-endcoworkingcommunitylocatedonthe15thand16thfloorsofTheGrahamBuilding.OriginallybasedoutofMiami,FL,theirflexible,collaboratespaceprovidesacombinationofprivateoffices,dedicateddesks,virtualoffices,conferencerooms,andeventspace.The21,000sq.ft.communityincludesaviewofCityHall,fourmembershipplans,ergonomicchairs,andreceptionistservices.

Seed Philly

Address: 1650ArchSt,#1906,Philadelphia,PA19103

Founded: 2010

Founders:BradDenenberg

Size:6,000sq.ft.

Website:http://seedphilly.org/

Description: AsPhiladelphia’sonlynon-profitincubator,SeedPhillyemphasizesmentorshiptopromoteinnovativeentrepreneursandbuildsmallbusinesses.Inadditiontosharedworkspace,SeedPhillyprovidesaccesstoaninvestornetworkspanningtheMid-Atlanticregionandtheyhaveavettedgroupofserviceprofessionalsableandreadytoassistinthegrowingneedsofsmallbusinesses.

Turnkey Startup Space

Address: 3060W.JeffersonSt,SuiteB,Philadelphia,PA19121

Founded:2015

Founders:BradBaldia,PaulPatel,CarlosCartagena

Size: 1,300sq.ft.

Website:http://turnkeystartupspace.com/

Description: TurnkeyStartupSpaceopenedthisAprilinhistoricBrewerytown.Dedicatedtoprovidingaffordableandflexibleworkspace,thecommunityprovidesacombinationofprivateworkareaswiththebenefitsofanopen-planoffice.Theyprovidemonthlyworkshopsandtrainingsinadditiontofourlevelsofmembershipoptions.

Venturef0rth

Address:417N8thSt,#201,Philadelphia,PA19123

Founded:2012

Founders: ElliotMenschik,JesseKramer

Size:10,000sq.ft.

Website:http://venturef0rth.com/

Description: AStartUpPHLfinalist,Venturef0rthislocatedintheCallowhillneighborhoodandspecializesincoworkingforeducational,entrepreneurial,tech,anddesignprofessionals.This10,000sq.ft.communityprovidesamenitiesincludingallowingmemberstobringintheirdogstowork,eventslikeyogaclassesandpokernights,andapingpongtableanddartslounge.


Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.

Lauren KoshgarianSenior Research [email protected]

AMERICAS RESEARCH

Ian AndersonDirector of Research and [email protected]

TolearnmoreaboutCBREResearchortodownloadourreports,visitcbre.com/research

Walnut Street Labs:

Address:23N.WalnutSt,WestChester,PA19380

Founded:2013

Founders:ChrisDima

Size:4,500sq.ft.

Website: http://walnutstlabs.com

Description: LocatedintheKeystoneInnovationZoneofsuburbanWestChester,WalnutStreetLabsprovidescoworkingspacetomembersviaasimple,monthlymembershipplanof$300.ItsonsiteIncubatoratWalnutSt.Labsfocusesonpreearly-stagefundingforinnovationswithgo-to-marketstrategies,productdevelopment,andsupportservices.

http://www.cbre.com/research

http://walnutstlabs.com

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