Historic downtown Houston building plans to expand inclusive coworking for entrepreneurs

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Esperson Flex plans on expanding within the historic Niels Esperson Building in the next five years. Photo via espersonflex.com

A nearly 100-year-old building in downtown Houston is welcoming in entrepreneurs, small business owners, and enterprise firms with a new opportunity to innovate outside of traditional office spaces.

Esperson Flex — a coworking concept managed by Cameron Management in The Niels Esperson Building, which has stood out in Houston's skyline since its inception in 1927 — offers various membership tiers in its facility featuring private offices, desk space, conference room, and access to the overall area for freelancers. As an add-on option to the membership, members will have the opportunity to connect with other entrepreneurs through offering reciprocal daily use passes to Cannon members and allow them to book the conference rooms.

“Coworking allows small entrepreneurs to have a community and startup ecosystem that is very cheap and very flexible," Cameron Management CEO Dougal Cameron tells InnovationMap. “They can invest money in their enterprise instead of signing expensive long leases.”

Photo via espersonflex.com

Esperson coworkers have access to The Cannon's digital platform, Cannon Connect, which provides a digital platform for connections, resources, and services to investors, entrepreneurs, startups, and small businesses.

Currently, the offering of the venue is 12,300 square feet and 62 percent of it is leased.The company hopes to expand the coworking facilities to 62,000 square feet in the next five years, according to Cameron.

There are seven groups who are growing their own coworking business under the Esperson and Cameron Management umbrella, and some include working with groups that are specifically targeting often overlooked demographics, including Hispanic, Black, and female entrepreneurs. The Us Space, for instance, is a women of color-focused collective providing support and coworking for its community.

“We believe that entrepreneurship is the answer to many important problems in our world,” Cameron Management CEO Dougal Cameron tells InnovationMap.

In addition, the facility works with the Prison Entrepreneurship Program, which is a comprehensive re-entry program to help empower those trying to change their lives.

Photo via espersonflex.com

Located downtown, Esperson Flex is the latest in flexible work spaces by Cannon, which also include locations in the Energy Corridor, Houston Galleria, Galveston, The Woodlands, and, as of this week, Memorial.

Spaces like Esperson Flex have become increasingly popular for remote workers, and in some cases, have shown increases in overall productivity. In a survey conducted by Airtasker, remote employees worked 1.4 more days every month, than office workers, which equals 16.8 more days every year. In a similar survey by the Gartner 2021 Digital Worker Experience Survey, 43 percent said that flexible working hours helped them achieve more productivity.

The Cannon, too, has seen coworking and community-building opportunities from all corners of Houston, as the company's CEO, Jon Lambert, shared on the Houston Innovators Podcast.

Both commercial and residential real estate businesses have been greatly affected by social distancing mandate. These two Houston companies are using technology to help grow their business. Photo courtesy of Cameron Management

Houston real estate sector adapts new tech to stay competitive during coronavirus outbreak

virtual tools

As the coronavirus impacts foot traffic throughout businesses in Houston, the real estate world is ushering in digital resources to adapt to a socially distanced city.

Mike Miller, vice president of Ashlar Development, saw the growing threat of COVID-19 in early March and knew he and his team had to find new ways to engage prospective home buyers safely. By the time Houston County Judge Lina Hidalgo announced the stay-at-home order, Ashlar Development had started the process of drafting a 360-degree interactive map for its northeast Houston community, The Groves, that would allow homebuyers to virtually tour the property.

"People were scared to come out of their homes, to touch model home door knobs, and walk-in and see a sales agent," says Miller, who noted the initial decline in foot traffic.

The interactive map debuted on The Groves' website on March 30, allowing users to experience the community through 35 different touchpoints. Website visitors can peruse nearby trails, the playground, pool, community amenities, and the local elementary school to immerse yourself in the community.

"One of our mantras at The Groves is to get outside. We encourage our residents to get outside and enjoy the community, enjoy the trails, and enjoy everything. What this [interactive map] does is it allows you to safely get outside from the safety of your home," he says.

Ashlar Development launched a virtual tour tool for its northeast Houston community. Image courtesy of Ashlar Development

Commercial real estate is also paving the way for innovation amid the pandemic. Houston-based real estate group, Cameron Management, unveiled its virtual 3D office tour on Monday. Partnering with Austin-based Swivel, a digital leasing platform for office space, the real estate group's latest venture will allow tenants and brokers the ability to take a 3-D virtual tour of suites.

The SaaS-based leasing application, AgileView, will feature 50,000 square feet comprised of 12 Cameron Management suites.

"We were looking to provide a tour to a broker, [or] to a broker's client, without anybody having to put themselves at any risk," says Jano Nixon Kelley, Cameron Management's director of marketing.

Kelley had built a strong relationship with the Swivel team prior to the coronavirus outbreak. When she learned of the capabilities of AgileView, "we jumped on it," she says.

"We were so pleased that they actually got the feeling for the building," Kelley says, "It doesn't look cookie cutter."

Another way both companies are getting creative is through digital marketing. Ashlar Development pivoted to digital advertising through paid media ads, email campaigns, and social media marketing. Rather than cutting its marketing budget, the community reallocated funds to building out the 360-degree interactive map and transitioning from print ads to digital display ads.

The response equated to what Miller deems an "incredible success." In the first week of launching the 360-degree interactive map, Ashlar Development saw a 3,000 percent increase in page views. The traffic resulted in a 1,200 percent increase in views to its "Meet the Builder" page, which features various home builders partnered with The Groves community. Since the tour launch, the company has seen a 220 percent increase in first-time visitors to its website.

Ashlar Development's significant web traffic isn't just a vanity number; Miller states that the Groves has seen a 116 percent increase in April sales as compared to last year. To date, the community is seeing approximately 30 percent in year-over-year sales since the stay-at-home order took effect.

Similar to Ashlar Development's approach, Kelley says Cameron Management utilized email marketing to launch her campaign. Cameron Management is also incentivizing brokers to use the application by hosting a two-week-long scavenger hunt for a chance to win an Amegy Bank debit card in an effort to support local business. "They can choose how to use their money, but hopefully they use it locally," says Kelley.

"Even if you're at home, [AgileView] gives you something visual to look at. Maybe you've got kids at home and can say, 'look, here's a game we can play together.' It's something to get people engaged," says Kelley.

"Office space needs for organizations of all sizes are modifying quickly, and likely will be changed for the long term. As the commercial real estate community adjusts to this new normal, there are still many unknowns," Kelley says. "At Cameron Management, we believe our differentiator is the ability to be nimble and pragmatic across all areas of our business—now and well beyond COVID-19," she continues.

For Ashlar Development, foot traffic has returned "almost back to normal," according to Miller, who attributes the rise to "pent up demand" once the stay-at-home order lifted.

"We're all kind of stuck in our houses, and our only outlet is to get outside and enjoy where you live," he says. "Our residents don't have to get in the car to enjoy a nearby county park, they can enjoy the community and the great outdoors right outside of their home," he says.

Miller himself recently bought a house from the comfort of his residence, electronically depositing his earnest money and signing for his future home.

"I think we're on the verge of a digital revolution in our industry," Miller says confidently. "Real estate has been slow to get into the digital realm, but I think this is going to force us to embrace technology."

Usually, Ashlar Development's selling point for The Groves is its access to "get outside." But, in a time of COVID-19, the company has optimized its technology to let home buying and touring stay inside for the time being. Photo courtesy of Ashlar Development

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Houston lab explores how AI bots can help the elderly

AI for aging

The University of Houston’s Empathetic Lifespan AI & Robotics for Aging (ELARA) Lab is currently conducting research into how AI bots may be able to help the elderly live more social and independent lives through several ongoing initiatives.

The lab officially launched last month as part of the Gerald D. Hines College of Architecture & Design under the leadership of Assistant Professor Chorong Park. Part of the lab’s mission is tackling ongoing problems with aging, such as dealing with disabilities and social isolation. Researchers’ current work is focused on designing a new AI companion bot specifically tailored to the needs of older people.

“We need to take all the needs of older adults seriously,” Park said in a news release. “They won't use the robot if they don't feel at ease or if they feel they are being constantly watched.”

The field testing of new AI bots in this population hopes to overcome several traditional obstacles in technology use among the elderly. A study by Park shows that many older people have a fear of overt surveillance when using advanced AI. There is also ageism to consider. Most new technologies are designed with younger and employed buyers in mind, not retirees who may need help remembering daily tasks or accessing important information.

“The more older adults are excluded from technology development, the worse those technology gaps will become,” Park said. “AI and the majority of technologies are created for younger people, so my research method integrates older adults directly into the design process.”

ELARA recently collaborated with the Mamie George Community Center in Richmond, Texas, to track seniors’ response to desktop AI bots like Emo and Cupboo. Researchers also had participants use air-dry modeling clay to create their ideal robotic companion.

While the eventual AI bot may be able to help the elderly feel less isolated and more supported, there are concerns to consider. A study published in the Asian Journal of Psychology charted the development of delusional thinking in a 72-year-old woman who became convinced the empathic-response bot was in love with her. The rise of “AI psychosis” has the potential to exacerbate mental health problems, particularly in socially isolated people, which a quarter of Americans over the age of 65 are.

ELARA’s research is focused on creating “pet-like” AI models with enhanced trust cues. If it can overcome the dangers of socially isolated people relying on AI for companionship, it could be a big step forward for independent aging.

SpaceX IPO set to be biggest ever and could make Elon Musk a trillionaire

IPO News

SpaceX says it plans to raise up to $75 billion when it goes public this month, setting the stage for the largest-ever stock market debut and putting Elon Musk on course to becoming the world's first trillionaire.

The company, formally known as Space Exploration Technologies Corp., said Wednesday it will sell 555.6 million shares at $135 a piece in an initial public offering. The estimated proceeds would easily top the $26 billion raised by oil giant Saudi Aramco in 2019. The offering would also give SpaceX a market value of $1.77 trillion. Only six companies in the S&P 500 are currently worth more, with Nvidia tops at $5.2 trillion.

Besides the size of the offering and the expected proceeds, SpaceX's amended prospectus updates details about how much control of the company Musk will have. As SpaceX's CEO, chief technical officer and chairman, Musk's voting power will come primarily through his ownership of 5.22 billion Class B shares, which give the holder 10 votes for every share held. According to the filing, Musk would have 82.4% of the voting power in the company.

Forbes currently values Musk's net worth at $826 billion and his stake in SpaceX at $542 billion. The estimated value of his SpaceX holdings was based on an overall value for the company of $1.25 trillion. Based on those numbers, a $1.77 trillion valuation for SpaceX would boost Musk's net worth by $223 billion, making him a trillionaire. However, much of Musk's worth is in stock that he has yet to cash in.

Even as it makes a bid for a blockbuster market debut, SpaceX is currently losing billions of dollars a year. The filing shows that the company lost $2.6 billion from operations last year on $18.7 billion in revenue, and the losses kept piling up at the start of this year, too.

Fantastical plans

Time will tell how SpaceX fares on the market. Musk's plans for the company are as fantastical as the money he hopes raise in the sale.

Colorful, even frightening in parts, the IPO document strikes a contrast with the typically dry, technical prose in IPO documents, detailing plans to use proceeds from the sale to help put men on the moon again and perhaps even Mars. In one section, it talks of a need to build "a permanent human colony" on the red planet with "at least one million inhabitants" as existential threats loom that could consign man to "the same fate as the dinosaurs."

Musk has almost equally ambitious plans for his other publicly traded company, Tesla. His goal is to transform the maker of electric vehicles into a producer of robotaxis and humanoid robots. Dan Ives of Wedbush Securities wrote in a research note that he expects Tesla and SpaceX to merge next year.

AI plays a key role

Key to the success of both companies — and any merged entity — is artificial intelligence. In its IPO filing, SpaceX says it sees potential revenue from AI of up to $26.5 trillion. But that depends on another lofty Musk ambition — putting data centers in space, which is not technologically possible at the moment.

Transforming his space company into a primarily AI-focused company will be a challenge for Musk, who started xAI in 2023 with 11 other co-founders who have all since left. Some were recruited away by rivals.

Its main AI product, the chatbot Grok, is "less impressive than anything that we see from any other major player in the space, whether that's OpenAI, or Anthropic, or (Google's) Gemini," said IDC analyst Arnal Dayaratna.

Dayaratna said that doesn't mean SpaceX doesn't have potential as a major AI player, thanks in part to its computing partnership with Anthropic and Musk's recent deal that gave SpaceX the rights to buy AI coding tool Cursor for $60 billion later this year. Folding in Cursor's capabilities would give SpaceX access to the coveted business customers now using Anthropic's Claude or OpenAI's ChatGPT.

SpaceX plans to use the net proceeds from the IPO to fund the expansion of infrastructure for its AI and rocket businesses, and to beef up the constellation of satellites that power Starlink Mobile, among other investments.

The company plans to list on the Nasdaq under the symbol "SPCX" and could begin trading as soon as the end of next week.

And SpaceX isn't the only colossal market debut investors are now bracing for. Earlier this week, Anthropic submitted a confidential filing with the U.S. Securities and Exchange Commission to officially start its own IPO clock.

OpenAI has not yet reported filing the initial SEC paperwork, but an IPO from the ChatGPT maker is widely expected.

"This listing represents the first major test for public markets after years of muted IPO activity with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives wrote.

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Associated Press Technology Writer Matt O'Brien contributed.

New UH survey reveals concerns over AI data center growth in Houston

data findings

A new report out of the University of Houston shows that area residents remain wary of the long-term effects of operating data centers.

The recent survey from the University of Houston’s latest SPACE City Panel, conducted by the Center for Public Policy at the Hobby School of Public Affairs, shows that while 85 percent of Houston-area residents use AI, nearly 63 percent oppose the construction of AI data centers within 1 mile of their homes.

Respondents’ concerns centered around data centers’ high energy demand and the area’s power grid reliability. According to the survey, 32 percent of residents who oppose local data center projects would be more likely to support the centers if they relied on renewable energy over fossil fuels.

“Respondents understand that AI can bring economic and educational benefits, but they are also concerned about the physical infrastructure needed to fuel AI, especially data centers,” Soran Mohtadi, post-doctoral fellow at the Hobby School and a researcher on the report, said in a news release. “This physical infrastructure demands more electricity and water, leading to environmental impacts.”

Experts estimate that 6.5 gigawatts of data center capacity will be added to the Texas grid by 2030. And Houston’s data center capacity is predicted to more than double by 2028.

The Electric Reliability Council of Texas also projects electricity demand could reach 218 gigawatts by 2031, which would be more than double the record peak set in August 2023. Data centers are expected to account for 86 gigawatts of that new demand.

Survey respondents also said they are concerned about the state's future water supply, given the large amounts of water that data centers need to stay cool.

In terms of who’s responsible for that issue, 57.6 percent of respondents said they put the onus on Texas lawmakers, while 31.5 percent say tech companies should be responsible.

Additionally, more than 75 percent of respondents believed that data center developers and technology companies—not residents—should bear the cost of infrastructure upgrades to support data centers.

“Every decision legislators make has implications on residents’ everyday lives and local infrastructure now and in the future,” Maria P. Perez Arguelles, lead researcher on the report and research assistant professor at the Hobby School, added in the news release. “This issue is going to become more important in years to come, so this is just the beginning.”

Read the full report here.

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