Pros and cons

3 things to consider before investing in coworking space for your company

Sharing common space or having a glass-wall office might not be ideal for your company. Getty Images

While coworking is an established trend in many of the nation's larger metropolitan areas, the innovative approach to office space has been slower to gain momentum in Houston from a tenant's perspective, making up less than 1 percent of the city's total inventory of office space.

Coworking has tended to appeal to startups and one- or two-person consulting firms and is currently available in Houston in various forms and price points. Nationally branded WeWork and Techspace offer an amenity-rich and more expensive option geared toward corporate clients, while other coworking providers, like Station Houston and The Cannon, have targeted tenants seeking connections to investors and mentors.

Coworking options can now be found in many parts of Houston. Office landlords are even converting portions of their buildings to coworking suites to meet increased demand.

Before you invest in this new type of office space, consider the following aspects that come with coworking space.

1. Flexibility is the key driver
From a user experience point of view, coworking has both advantages and disadvantages. Flexibility and price are the key elements. In contrast to multiyear year lease terms required by traditional landlords, coworking is a shorter commitment. Terms of six to 12 months for fully furnished offices are the norm, but month-to-month leases are also common. Rent is calculated based on a per-person model, compared to the rent-per-square-foot structure of a traditional office or warehouse lease.

For a one-person company or a small team, sharing a kitchen and conference room can be well worth the lower monthly rent expense, ranging between $800 and $2,000 per month. Touch and go memberships are also available at most coworking locations, providing access to the common areas for a typical monthly fee of less than $200, but without the benefits of a private office. However, as companies scale up and grow, the per-person model for rent begins to make less economic sense.

2. Beware of the add-ons
Coworking typically provides shared use of conference rooms with a monthly allocation of time for each tenant. Some offer beer, coffee, and social and networking events, and a few even permit dogs. It is important to read the fine print of the agreements and be prepared to pay additional charges for extra amenities not included in the monthly rent — everything from garage parking to fees for internet, furniture rental, snacks, and kitchen use.

3. Privacy and identity
Sharing a glass-walled team office with coworkers and taking private calls in a shared space is not the right fit for every company. For some firms, their critical objective is a work environment that reflects company brand, culture, or professional image — a feature not necessarily offered with coworking.

However, as Houston has witnessed changing work patterns, commute issues, and the importance of work-life balance, our city has responded and can now offer many more flexible workspace options.

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Julie King is president of NB Realty Partners. She has mentored and provided commercial real estate advice to technology, biotech, and early-stage companies for over 20 years.

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Building Houston

 
 

After a virtual bootcamp, the TMCx team selected seven startups to move forward in the accelerator. Photo courtesy of TMC

Last year, TMCx, the Texas Medical Center's health tech startup accelerator pivoted to digital programming.

The accelerator revamped its program to allow for an initial Bootcamp stage that would bring in a larger group of startups and then, after the boot camp, the program would move forward with a smaller group through the official acceleration process.

"We hosted 21 companies, representing six countries and 10 states, who each engaged with subject matter experts, clinical leaders, and corporate partners," writes Emily Reiser, senior manager of Innovation Community Engagement at TMC Innovation, in a blog post. "Over half of which ended Bootcamp in advanced discussions with hospitals and/or corporate partners."

Through the bootcamp, TMCx has accepted seven startups into the program. These companies are currently engaged with the TMC community and are receiving support, mentorship, and other opportunities.

Cardiosense

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Chicago-based Cardiosense, a medical device company with heart health tracking technology, is familiar with Houston innovation. The company won sixth place in the 2020 Rice Business Plan Competition, and the TMC's prize at the event.

Cognetivity Neurosciences

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Cognetivity Neurosciences, founded in the United Kingdom, is a digital health platform that taps into neuroscience and artificial intelligence to measure cognitive performance of patients in order to more effectively allow for early detection and management of neurodegenerative disorders.

Eleos Health

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Cambridge, Massachusetts-based Eleos Health is focused on helping behavioral health clinicians to optimize their efforts with an all-in-one behavioral health platform. It combines telehealth, measurement-based, and evidence-based care in one holistic solution, and is powered by therapy-specific voice analysis and natural language processing.

Harmonic Bionics

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Harmonic Bionics is one of two Lone Star State companies in the program. The Austin-based robotics startup is working on technology that can help improve upper extremity rehabilitation for patients.

Native Cardio

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Florida-based Native Cardio is tapping into technology to help find a solution to postoperative atrial fibrillation (POAF), which is the most frequent complication after cardiac surgery, occurring in up to 60 percent of patients, according to the company's website. The goal is to help reduce costs, increase accessibility, and improve quality of care.

Progenerative Medical

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Progenerative Medical, based in San Antonio, is working on a clinically-proven reduced pressure therapy to spinal and orthopedic indications to significantly improve clinical outcomes.

RCE Technologies

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Atlanta-based RCE Technologies is an artificial intelligence-enabled medical device company that has created a technology that can detect heart attacks early using non-invasive wearables.

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