Space race

Houston trails behind Dallas when it comes to coworking office growth

When it comes to coworking space growth, Dallas has the edge on both Houston and Austin. Getty Images

Houston's coworking space growth pales in comparison to that of Dallas, a new study finds.

A survey by commercial real estate company Colliers International finds that among 19 major markets in the U.S., DFW is No. 1 for coworking growth while Houston is No. 15.

In DFW, the amount of coworking space in downtown markets and core submarkets soared 250 percent from the fourth quarter of 2016 to mid-2018, winding up at nearly 370,000 square feet (roughly equivalent to the size of two Walmart supercenters). That figure excludes suburban markets. DFW's coworking expansion dwarfs that of Houston, which ranks 15th (27 percent increase, landing at just over 706,000 square feet), and even Austin's, which ranks 14th in the Colliers survey (30 percent increase, landing at almost 300,000 square feet in mid-2018).

While Houston might not have had much recorded growth over the past 2.5 years, the city expects to see some major projects deliver during the next 2.5 years. The Cannon's 120,000-square-foot space is expected to open in May of this year, while Rice University's The Ion that will be 270,000 square feet in Midtown will finish up at then end of 2020.

Stephen Newbold, national director of office research at Colliers, says tech companies are the dominant tenants in coworking spaces, which helps explain why coworking represented 3.4 percent of all office inventory in the tech-heavy Austin market in mid-2018, compared with 0.9 percent in DFW and 0.6 percent in Houston. Austin's coworking share also outpaced that of Seattle (2.6 percent) and San Francisco (2.3 percent).

Newbold points out that DFW's and Houston's shares of coworking space are lower than Austin's because they rely more on a traditional base of tenants consisting of financial services firms, professional firms, and major corporations.

Colliers notes that coworking made up just 1.6 percent of all office space in the U.S. in mid-2018, or 27.2 million square feet. However, JLL says coworking represented nearly two-thirds of the occupancy gains in the U.S. office market in 2018, and it predicts coworking will constitute about one-third of the office market by 2030.

"Our research, and our conversations with corporate executives across the globe, indicate that flexible work is not just a passing trend — it's woven into the fabric of the future of work," Scott Homa, senior vice president and director of U.S. office research at JLL, says in a release. "Even though some markets are better positioned for rapid growth, this still leaves significant runway for expansion across all U.S. office markets."

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This story originally ran on CultureMap.

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Building Houston

 
 

MassChallenge Houston's 2020 cohort has been selected. Photo courtesy of MassChallenge Texas

After launching in Houston with a smaller cohort last year, MassChallenge Texas has announced its latest, full-scale cohort and is kicking off virtual programming this month.

"Today's world is up against new challenges that require creative solutions to help us get back to speed as quickly and as efficiently as possible," says Jon Nordby, MassChallenge Texas in Houston's managing director in a news release. "The incoming cohort is uniquely positioned to make an impact because of their ability to act swiftly and adapt to new market needs. These founders will go on to create the impact and the jobs that will underpin the recovery of our economy for years to come."

The program begins this month and concludes in September. According to the news release, the accelerator will operate as a hybrid — combining virtual and in-person programming. The startups will pitch virtually at the MassChallenge Virtual Startup Showcase on July 16 and 17, as well as at the conclusion of the program at the the MassChallenge Texas in Houston 2020 Awards.

The cohort represents 12 countries and 13 states — with over a third being female founded. The program is also introducing two new tracks: Sports tech, which was announced in April, and space commercialization.

Here are the members of the 2020 MassChallenge Texas Houston cohort and where they are based.

Energy and clean tech

  • Direct Kinetic Solutions (Texas)
  • PolarPanel (Texas)
  • QUEMPIN SpA (Chile)
  • TexPower (Texas)
  • ThermoAI (New York)
  • WeavAIr (Canada)

General and retail

  • AbegYa (Cameroon)
  • Dunyha (Texas)
  • FieldTrend (California)
  • FloodFrame (Texas)
  • Integricote (Texas)
  • Sensegrass (India)
  • Scout, Inc (Virginia)
  • SurfEllent (Texas)
  • Tellinga (Texas)
  • Walter's Cube (New York, USA)

Health care and life science

  • Aniluxx Biotechnology (North Carolina)
  • Articulate Labs (Massachusetts)
  • Healium (Missouri)
  • Hera-MI (France)
  • NeuroRescue Inc. (Louisiana)
  • Noleus Technologies, Inc (Texas)
  • O2 RegenTech (Ohio)
  • OrganoTherapeutics (Luxembourg)
  • PATH EX, Inc (Texas)
  • Pegwin - Patient Safety Innovation (Texas)
  • PREEMIEr Diagnostics (Michigan)
  • ReCellTis Wound Cream (Texas)
  • RedOak Instruments, LLC (Texas)
  • Steradian Technologies (Texas)
  • Solenic Medical, Inc. (Texas)
  • Starling Medical (Texas)
  • TomoWave Laboratories, Inc. (Texas)
  • Tremedics Medical Devices (Texas)
  • UniExo (Ukraine)

Technology

  • Asystom (France)
  • B2B Pay (Finland)
  • BoxMagic (Chile)
  • ByLingual (Texas)
  • CityGuyd (Florida)
  • HVACIntel (Texas)
  • Keto A.I (Texas)
  • M1neral (Texas)
  • Navigation Research Company (Texas)
  • Node App (Canada)
  • Ozark Integrated Circuits, Inc. (Arkansas)
  • Noala (Ukraine)
  • Securelyshare (Virginia)
  • SenSwim (Israel)
  • Sizzle (California)
  • Snaptivity (United Kingdom)
  • SpenDebt (Texas)
  • Tradeblock (Texas)
  • V2verify (Nebraska)

Social impact

  • Kietoparao (Spain)
  • Teaching Artists International (Massachusetts)

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