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.

These three Houstonians have a lot up their sleeves for their companies. Courtesy photos

This week's three Houston entrepreneurs are all about improving access for startups — either to capital or to resources — and that's no small undertaking in a market like Houston. With its urban sprawl and large population, Houston's been considered to have a connectivity problem. Luckily, these three folks have solutions.

Grace Rodriguez, executive director and co-founder of Impact Hub Houston

Grace Rodriguez is the co-founder and executive director of Impact Hub Houston. Courtesy of Grace Rodriguez

Grace Rodriguez has been working to launch Impact Hub Houston for a while now, but her and her team's moment has come. For Rodriguez, the goal is to both advance Houston startups, as well as the innovation ecosystem as a whole.

"Our real vision is to help Houston become a role model for how the world solves the most pressing issues," she says. "We want to show the rest of the world that Houston has the talent, expertise, insight, and resources to solve issues around the world." Read more about Rodriguez and Impact Hub Houston here.

Nicolas Carnrite, co-founder of LetsLaunch

Nicolas Carnrite founded LetsLaunch to improve access to funding. Courtesy of LetsLaunch

Something didn't add up for Nicolas Carnrite. The opportunity to invest in companies was limited to such a small percentage of the population.

"There's something like 30 million people globally that have a $1 million net worth, which is the definition of being an accredited investor," Carnrite says. "Thirty million people out of 7.7 billion, so it's a little less than half a percentage."

This translated into an opportunity to create LetsLaunch, a securities investment online platform that democratizes investment. The Houston company has taken it a step further in its recent partnership with The Cannon. Read more about this partnership here.

Youngro Lee, co-founder and CEO of NextSeed

Youngro Lee NextSeed

Youngro Lee, co-founder and CEO of NextSeed, wants to create a connection between business and their communities. Courtesy of NextSeed

Thanks to a recent SEC accreditation, Youngro Lee is now able to announce that his Houston online fundraising platform, NextSeed, is a broker-dealer. The platform, which has helped the likes of Buffalo Bayou Brewery and The Waffle Bus raise thousands of capital dollars, is now able to offer its community more investment opportunities. Read more about what the deal means for the company here.