Austin-based Firmspace opened its Houston location last year. Courtesy of Firmspace

Before the pandemic, Houston coworking demand mirrored that of the rest of the country: shared space was booming, new operators were opening up. Demand was growing in Houston, as it was in other markets.

When the pandemic arrived in Houston last spring, the city was hit with a crisis on two fronts: local public health challenges due to the arrival of COVID-19 were further complicated by a downturn in the price of oil and gas industry — the literal fuel of this city's dominant industry.

But coworking hasn't faded away as office spaces closed or reduced capacity – it's evolved. In fact, the ongoing pandemic has accelerated this changing space and pushed operators to adapt their offerings to meet the market's needs. The result in Houston is the emergence of three major trends that we expect to see persist beyond 2021.

Increased demand for private offices

According to a recent report from JLL, up to 70 percent of all office spaces were primarily or partially open plan in design by the first quarter of 2020. But few of us want to sit in an open plan office with a dozen other masked professionals while fielding Zoom calls, but working from home isn't an option for those who lack the space and privacy they need to effectively work from home.

This combination of pandemic-related stressors has driven more Houstonians to seek out private office space for rent. The basic requirements in the pandemic era look slightly different than what we might have observed a year ago. Professionals want:

  • Private office spaces with doors that close and lock
  • Walls that provide privacy and noise insulation
  • Secure IT infrastructure, chiefly high-speed internet access
  • Enhanced cleaning protocols in common spaces and high-touch areas
  • Closed ventilation loops and as much clean air piped in from the outdoors as possible

And coworking spaces are doing their best to deliver this calm, safe environment where busy professionals can come to do focused work.

More short-term arrangements

The future has never looked more uncertain to professionals and leadership in all sectors. Here at the end of 2020, many companies that have paid nearly nine months of rent on office space that they've been unable to safely use are weighing the benefits of breaking their years-long commercial leases.

Companies are not sure what the structure of their teams will be in three months, nevermind three years, and this is changing how leaders think about their real estate contracts. In this climate, many are turning to coworking spaces that offer six- and 12-month contracts with furnishes and IT infrastructure in place to lighten their financial commitments to physical spaces.

The other trend in short-term leasing that local coworking spaces have embraced is the day office. Given that many of us are planning to work at least part-time from our home offices for the near future, coworking spaces have spotted the opportunity to offer a pay-per-day model to engage professionals that only need a break from the home office one or two days a week.

A private office as a status symbol

The office used to be where we went to get away from home five days a week. For members of traditional coworking spaces in the startup and tech industries, the office often felt like an incubator where spontaneous connections happened.

But in light of the pandemic, private office space has become a refuge where professionals go to feel safe, achieve focused work, and execute sensitive tasks with assurance that they have a level of privacy that can't be achieved at home.

Whether you're looking to speak with clients or prospective employees remotely, private office space and polished meeting rooms have also come to be a status symbol. A video call with chic design elements visible in the background of their office space communicates something powerful – the people in those chairs are invested in the time they spend at work.


Moving into 2021, Houstonians are ready to return to work. Even before the pandemic arrived, commercial real estate was beginning to see that the future of work will be more flexible and more often remote than it was in the past. While we're not through this crisis yet, many professionals are already looking for a new kind of private office arrangement, and local coworking operators are working to deliver the space these Houstonians need.

------

Anish Michael is the CEO of Austin-based Firmspace, which has a 32,000-square-foot space in BBVA Compass Plaza in Houston.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston airports poised for 1.3 million travelers on Memorial Day weekend

Taking Off

George Bush Intercontinental Airport (IAH) and William P. Hobby Airport (HOU) are estimated to see 1.3 million travelers during the Memorial Day period (May 20 - May 28). Despite large crowds, the airports say they have prepared with multiple new improvements designed to slow traffic and make check-ins easier.

“Air travel drives jobs, business and tourism — and this summer, Houston Airports is powering that growth,” said Jim Szczesniak, director of aviation for Houston Airports.

“From streamlined security to a smarter website to new flights and fresh amenities, we’re delivering improvements that support Mayor Whitmire’s call for a more user-friendly Houston. These upgrades aren’t just about moving people — they’re about moving our economy forward.”

IAH in particular has seen remarkable drops in wait times thanks to the new IAH International Arrivals Curb. Part of the $1.458 billion IAH Terminal Redevelopment Program (ITRP), it reduced airport traffic during the Christmas holidays by a whopping 99 percent, with the average wait time reaching only two minutes. Other improvements include TSA Precheck enrollment pods at both airports and the agility for international travelers to recheck bags without leaving the terminal after they have passed through customs.

The amount of travelers expected for Memorial Day is slightly below 2024 numbers, but Houston Airports expects record-breaking travel over the summer. Current estimates show 19.5 million people moving through both airports through Labor Day, a 250,000 increase over last year. Part of this can be attributed to IAH's increasing status as the gateway to Mexico, Central America, and South America, running nonstop flights to new tourist hot spots like Puerto Escondido.

In additions to streamlining the flight processes, Houston Airports are expanding concession and shop offerings. Hobby recently opened The Rustic, Chick-fil-A, Pei Wei, and Throughgood Bistro. Bush added Hip & Humble, a boutique gift and souvenir seller focused on the items for women travelers and those looking for a little luxury when they return home. And, as always, Houston Airports have some of the finest art in the country. All of it together makes traveling to and from the city much less stressful than the big crowds would portend.

"We’re ready to welcome millions with efficiency and a warm Houston spirit,” said Szczesniak. “This summer, travelers will see and feel the difference we’ve made.”

---

This story originally appeared on our sister site, CultureMap.com.

Houston e-commerce unicorn reaches $1.6B valuation with $50M fundraising round

fresh funding

Houston-based Cart.com, a provider of fulfillment and logistics services for B2C and B2B brands, has raised $50 million in venture capital, pushing its valuation to $1.6 billion. Since it was founded in 2020, Cart.com has raised $475 million.

Cart.com earned “unicorn” status in 2023 after securing a $60 million Series C round of funding. In the startup universe, “unicorn” refers to a private company that’s valued at $1 billion or more. Last year, Cart.com nailed down $130 million in debt funding, lifting its valuation to $1.2 billion.

Technically, Cart.com no longer qualifies as a startup. Rather, it’s now in “scaleup” territory. This term refers to a startup that has notched substantial growth and has maintained a stable workforce, among other positive achievements. Notable brands that have graduated from startup to scaleup include Airbnb, Peloton and Uber.

The $50 million round includes money from funds and accounts managed by BlackRock and Neuberger Berman, and new investors such as eGateway Capital, along with several unidentified venture capital firms, investors and family offices.

The company said it will use the fresh capital to fuel its global expansion through investments in infrastructure, technology, and M&A.

“Cart.com is continuing our strong growth trajectory across all operating metrics, and we intend to utilize this additional capital to accelerate the expansion of our platform and bring our customers new capabilities to enable their growth,” Omair Tariq, founder and CEO of Cart.com, said in a news release. Tariq added that his company is “well on our way to building the largest and most comprehensive platform in our space.”

Over the past 12 months, Cart.com completed its acquisition of OceanX, the fulfillment operation of direct marketing company Guthy-Renker, and Amify, an Amazon marketplace optimization and advertising platform. Bill Guthy, founder of Guthy-Renker, now sits on Cart.com’s board of directors

Texas luxury bus service adds route connecting The Woodlands and Dallas

Travel Time

Houston-area business and leisure travelers have a convenient new route to check out thanks to Vonlane. The Texas-based luxury motor coach service is adding a new daily service between The Woodlands and Dallas starting June 13.

Vonlane already offers service between Dallas and downtown Houston, at the Hyatt Regency at 1200 Louisiana St., eight times per day starting at 6 am. The ride takes 3 hours and 45 minutes.

According to Vonlane founder and CEO Alex Danza, The Woodlands has been a much-requested route.

“The Woodlands area has been our most requested geographic addition for several years, so we’re thrilled to announce this expansion, our 10th destination on our 11th anniversary,” Danza says. “Bringing our elevated bus service to suburban areas is a strategic priority as we seek to relieve the hassles of driving and air travel for our passengers and better meet them where they live, work, and play.”

The new service brings a convenient nonstop route to and from the northern fringe of Houston — The Woodlands, Spring, Cypress, Conroe, Montgomery County, and northern Harris County.

Beginning June 13, The Woodlands-Dallas route will offer the following departures:

  • Monday, Thursday, and Friday: 6:15 am, 10:15 am, 2:15 pm, and 6:15 pm – departing both The Woodlands and Dallas
  • Tuesday, Wednesday, and Sunday: 10:15 am and 2:15 pm – departing both The Woodlands and Dallas
  • Saturday: 9 am: departing The Woodlands
  • Saturday 1 pm: departing Dallas

This ride will take 3 hours and 15 minutes.

The new drop-off point for The Woodlands service will be at Woodlands Waterway Marriott Hotel & Convention Center, 1601 Lake Robbins Dr.. According to Danza, The Woodlands Waterway Marriott offers easy access to I-45, ample parking, and high-quality accommodations.

Riders will depart in Dallas at the established stop at Doubletree Love Field, 3300 W. Mockingbird Ln. The new route offers proximity to major employers in the area such as Alight Solutions, Baker Hughes, Chevron Phillips, Entergy, ExxonMobil, Hewlett-Packard, Houston Methodist, Huntsman Corporation, Lone Star College, McKesson, Memorial Hermann, Occidental Petroleum, St. Luke’s Health, and Texas Children’s.

Visit The Woodlands president Nick Wolda says in a statement that The Woodlands is a popular destination for Dallas residents.

“Visit The Woodlands is excited to welcome Vonlane to The Woodlands Waterway Marriott and Conference Center. This first-class amenity is a fantastic addition to our vibrant community, perfectly designed to elevate the travel experience,” Wolda says. “The Woodlands is the go-to destination for trips from the DFW area—whether you're a corporate conventioneer, a Pavilion concertgoer, a college student coming home, or a weekend shopping trip with friends. With this new service, getting to and from The Woodlands has never been easier or more enjoyable!"

Vonlane buses have 22 first-class leather seats, ample workspace, complimentary Wi-Fi, and an onboard attendant offering premium cabin service with snacks, meals, and beverages included.

Fares are a flat rate of $125 for one-way trips with advance purchase. No taxes, baggage fees, or change fees apply. Rates increase with less than seven days’ notice and within 24 hours before departure.

Tickets can be booked at www.vonlane.com.

Vonlane was founded in Texas in 2014 and offers more than 475 weekly departures across 10 destinations.

---

A version of this story originally appeared on CultureMap.com.