The future of coworking is bright. Starting earlier this year, local operators report increased demand. Buoyed by the state's early reopening and the ongoing migration of tech employees and companies, the Austin coworking market is performing better than most.
Coworking is the use of an office by people who are self-employed or work for different employers so as to share resources and save on overhead costs. "I truly believe coworking is the new normal," said Lindsey Rohde, senior director of campus operations for Galvanize, which has campuses in six cities, including a 20,000-foot-space in the 2nd Street District.
On the ground
Galvanize has seen month-over-month revenue growth since January and the most sales leads in its 12-year history. In the Austin area, Rohde suspects this growth is due to the continued migration of millennials to the Austin area, which has prompted companies and investors to follow suit.
More so than any of its locations, Galvanize Austin is seeing an uptick in demand from larger companies that need an office for a single remote employee or small remote team—what is known in the industry as a hub-and-spoke model. "Companies have realized, as we've proven ourselves in the last year, that remote work is an amenity that you can offer to your employees," she said.
The Commune in the North Loop neighborhood has also seen demand increase in the last couple of months, mostly among new members, many of whom moved to Austin during the pandemic. (Molly Culver)
The Commune, a North Loop coworking space that caters to artists and creatives, has also benefited. Founder and owner Lauren Cunningham said the business, which lost around 75% of its members last spring, has seen an uptick in demand in the last couple months and is now approaching pre-pandemic levels. The vast majority of the Commune's members are new, and many relocated to Austin during the pandemic.
In addition to these transplants, the vaccine rollout has played a role. "There's definitely a correlation between when we've seen an uptick in new members and vaccination rates," she said.
Commercial real estate firm CBRE predicts a positive outlook for the local office market in 2021, despite rising vacancy rates and negative absorption. Senior Field Research Analyst Luke Goebel said this is because of the numerous companies that have announced plans to relocate to Austin. Those companies will need office space.
Kevin Hanan, a CBRE broker who specializes in office tenant representation, said clients' main request right now is flexible office space. Coworking spaces offer short-term leases that are easy to get into (and out of) and expand. "The coworking-slash-flexible office market provides a nice, risk-free way to plant your business in Austin," he said.
Clients are also looking for coworking options that offer privacy and network security. This shift away from the communal, "hot desk" model that defined the coworking industry even just a few years ago predates the pandemic, Hanan said, but the last year has accelerated it.
Austin-based Firmspace offers proworking space, which is geared toward business professionals in search of more privacy and security than a traditional coworking space might offer. (Firmspace)
Austin-based Firmspace, which has four locations across the country, including at 500 West Second Street, calls this "proworking." CEO Anish Michael believes the coworking industry is headed in this direction and anticipates a consolidation as a result of the pandemic. Firmspace, however, is doing well. The company is due to open a fifth location in Chicago this month and is exploring the possibility of a second location here in town. "We've always thought Austin is ahead of the game," he said.
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Show your love for Tito's and for the community this year with a wide selection of not that ugly, uglyish, ugly, uglier, and ugliest holiday sweaters.
There's lots choose from, and plenty of accessories like scarves and socks, plus gear for your dog, too.
All of the items can be purchased online or at the Love, Tito’s Retail Store in Austin, TX. 100% of all net proceeds from online or in-store purchases go to one of the nonprofits we’ve teamed up with.
🗓 All weekend
Check out this highly anticipated art exhibition with illuminated art along Waller Creek. Tickets are free and the event includes food vendors, dazzling lights, live music, and hands-on activities
All weekend 6 p.m - 10 p.m | 📍Waterloo Park
This iconic holiday tradition lights up for the first time this holiday season starting this weekend! Reserve your spot for an enchanting light and sound performance, delicious hot cocoa, sweet treats, and some overall fun with your friends or family. The show runs till January 6th.
6 p.m and 9 p.m | 📍Mozart's Coffee Roasters - 3825 Lake Austin Blvd, Austin, TX 78703
This fitness event is free and open to the public. Get your morning started right with a "Fitness in the park" class for kickboxing! The class will be led by certified instructors and is a great way to get a cardio workout in while also honing your self-defense skills.
10 a.m - 11 a.m | 📍 Metz Park
Support local LBGTQ+ and female artists at this outdoor market with over 150 vendors. Get your holiday shopping out of the way at this event, with vendors for food trucks, handmade goods, raffles, hands on workshops and activities, and more.
Did someone say cheese?! If you're like me and always willing to get your hands on a bowl of mac and cheese, then this event is for you. Check out the Mac and Cheese festival happening this weekend to decide which vendor has. the best mac and cheese for yourself, and enjoy the bar with creative cocktails while you're at it. Tickets start at $45.
11 a.m - 3 p.m | 📍Lantana Place - 7415 Southwest Parkway