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- A strategic partnership between Heritage Office Suites and Workspace Strategies led to the transformation of traditional office spaces into profitable, flexible workspaces, achieving full occupancy and surpassing market rent expectations.
- Adaptation to the gig economy and remote working trends coupled with rebranding and operational overhauls contributed to Heritage Office Suites’ success in a competitive market.
- Replication of the successful management template enabled a second location to mirror the initial success, confirming the model’s effectiveness and prompting considerations for further expansion.
There comes a point in every real estate investor’s career where strategic foresight intersects with opportunity. This was precisely the case for Heritage Office Suites when it decided to explore the potential of transforming a previous investment into a thriving, profitable venture.Â
With the rise of the gig economy, increased remote working, and the need for flexible, on-demand office spaces, the owner of Heritage Office Suites (situated in the burgeoning city of Round Rock, Texas) recognized an opportunity to capitalize on these trends.
The journey began when the lease with a national serviced office provider was due for renewal. Instead of taking the conventional route, the owner saw value in the burgeoning coworking and flexible office space market. Yet, entering such a dynamic industry required expertise that was beyond the owner’s experience. This is where Workspace Strategies became instrumental, stepping in to provide the necessary industry insight and operational support.
With a fresh approach, Workspace Strategies embarked on a mission to create a distinctive brand identity for Heritage Office Suites. This rebranding was not merely cosmetic; it entailed a comprehensive overhaul. The space was redesigned to embody the new vision, with attention paid to modern aesthetics, collaborative areas, and private offices that catered to a diverse clientele, including freelancers, startups, and established businesses.
The expertise provided by Workspace Strategies was comprehensive. From procuring modern furniture that seamlessly blended functionality and style, to installing cutting-edge technology that met the needs of a dynamic workforce, Workspace Strategies ensured the facility was not just contemporary but competitive. Beyond the physical transformation, Workspace Strategies developed robust operational systems, including website creation, sales collateral, and an effective marketing strategy — essentials for penetrating the market and attracting members.
Recruitment and staff training were handled with equal acuity, ensuring that every team member represented the brand’s newly established values and commitment to service excellence. Financial management, a critical but often burdensome aspect of any business, was expertly managed by Workspace Strategies. By handling payroll, bookkeeping, billing, and accounting, the owner was allowed freedom from the day-to-day intricacies, affirming a truly hands-off investment approach.
The results of this collaboration were nothing short of impressive. Within 18 months of opening, Heritage Office Suites achieved full occupancy, a milestone that carried with it the enviable problem of having a waitlist. The consistency of this performance, maintaining over 90% occupancy thereafter, and the sustained year-over-year revenue growth, exemplify the success of the wise decision to partner with Workspace Strategies. The original expectation of receiving full market rent was exceeded, with the owner now enjoying 140% of market rent, an indicator of the business’s remarkable profitability.
Adding to this success were the virtual office and meeting room revenues, which significantly bolstered the overall business performance. The affirmative testimony from Mr. Joseph McReynolds, the owner, elucidates the value Workspace Strategies brought to the table, enabling Heritage Office Suites to not only compete with but excel against larger-scale operators.
“Partnering with WS…has allowed us to compete against large-scale operators and optimize our position as the premiere flexible workspace provider in our market.” Joseph McReynolds, Heritage Office Suites Owner
The triumph was not limited to one location; replicability of this success was evidenced with the opening of a second suite in Georgetown, Texas. Following the same Workspace Strategies management template, this location mirrored the full occupancy and waitlist achievement within the same 18-month timeframe and even exceeded market rent expectations by reaching 150%.
Spurred by this continued success, and with Heritage Office Suites becoming a name synonymous with premium flexible workspace provision, exploration of a third location is now underway. It’s an ambitious stride that confirms the effectiveness of the model crafted by the collaboration with Workspace Strategies.
Heritage Office Suites is a standout example of how a strategic approach, combined with the right management partner, can turn commercial real estate into profitable flexible workspaces. The triumph of this story is a testament to the owner’s visionary mindset, enhanced by the brilliance of Workspace Strategies. Together, they have crafted a dynamic blueprint that sets the standard for the evolution of coworking and office space management.
