After last week’s post on the Economics of the Atlanta Tech Village a number of people provided great feedback and ideas. With a 100,000 square foot facility, there’s no shortage of cool and interesting things that can be done.
Here’s some of the feedback on the economic model:
- Building operating costs will be higher for things like utilities and cleaning fees since the building occupancy will significantly increase (expected annual increase of $50,000)
- Insurance costs weren’t listed and are going to be much higher than a normal building due to so many coworking tenants (expected insurance costs of $40,000 – $50,000)
- Building repairs reserve fund wasn’t listed and is needed for bigger occasional projects like resurfacing the parking deck, replacing the roof, etc (expected annual costs of $50,000)
- Commissions for real estate brokers are needed in the budget if we lease out traditional suites to tech companies (we have two good suites in the building available for lease to cool companies with 15 – 30 employees)
- Sponsorships from service providers are a good opportunity that could result in $50,000 – $100,000 in revenue (e.g. lawyers, accountants, PR, marketing, banking, commercial real estate, wealth management, etc)
- Event space and training lab rentals are another opportunity that could result in $10,000 – $25,000 in revenue
- Memberships other than renting desks, rooms, and modular suites like part-time access, weekend/evening access, mailing address services, and affiliated tech company involvement could result in $25,000 – $50,000 in revenue
Based on this feedback I believe expenses and revenue will be higher than previous listed, ideally off-setting each other.
What else? What are some other economic ideas for the Atlanta Tech Village?