The coworking trend first appeared in English-speaking countries a few years before reaching Germany. The paper identifies the 1995 Berlin-based programming community named C-base as the precursor of coworking in the country. The sector grew significantly over the following years due to the reduction in available space and rise in rental prices across most of the German real estate market.

The paper identifies three main models of coworking: coworking spaces in the narrow sense, hybrid model which describes a mix of private offices and open spaces, and business centers where fitted-out office spaces are rented out as private offices for short or longer terms, and provide other optional services and infrastructure. Advantages of coworking spaces include the focus on creating an interactive social environment. In practice, there is a trend for large, flexible workspace operators to move to a hybrid model. This combines elements of business centers (i.e. flexible leasing of small private offices) and elements of coworking spaces (i.e. open space, trend towards contemporary design, communal areas and collaboration).

There are several trends driving coworking. Technological advances enable people to work from anywhere. The rise of the start-up culture and digital nomads has also impacted the way we work. Digital start-ups in particular who benefit from low marginal cost and high scalability of their businesses benefit from the advantages of coworking spaces. Another important driver is the proliferation of the sharing economy, with coworking as one of its elements.

According to the recent study “Start-up-Unternehmen in Deutschland” (Start-up Companies in Germany) published by PwC, Hamburg is seen as a location expected to offer a highly attractive environment for new companies and significant potential demand for coworking space. In contrast to the current trend in respect of new company formations, office space take-up by startups as a core target group in the coworking segment has increased significantly here over the past few years, reaching its high point in 2014 with up to 40,000 sqm.

This study researched and classified flexible workspaces and analyzed further information relating to size and pricing models in Hamburg as at the end of August 2017. It considers the following types of operator: coworking space in its narrow sense (including selected office communities), business centers and hybrid model providers as described above. The latter category has been allocated to the business center or coworking segments depending on their positioning. According to the study, once all currently planned centers have opened, there will be around 9,800 workstations in flexible workspaces available in Hamburg.

The total number of workspaces (including planned locations) offered by flexible workspace operators equates to around 118,000 sqm of office space. This is less than 1% of the total office stock or a quarter of the average annual office space take-up, and around 3% in the city center. While coworking might currently account for a small percentage of offered office spaces, it has a high growth rate and attracts a lot of attention.

There is a great variation in prices for workstations in flexible workspaces. Asking prices in business centers range from €250 to just under €1,000/space p.m. In the coworking segment, asking prices range from €50/space p.m. to just under €400/ space p.m. The average (median) price in a hybrid centers is between €290/space p.m. for a coworking space in open-plan premises and €480/space p.m. for a private office. There are individual discounts for longer-term coworking memberships and in business centers. The wide range of prices is because the service is aimed at different target groups. Operators providing coworking space in its narrow sense often have lower costs and attract almost exclusively small companies. Operators of hybrid centers and business centers are aimed also at large companies.

Comparing the benefits of leasing self-contained office spaces vs. taking membership of a coworking space, a self-contained office lease contract generally means there are costs in setting up the contract in terms of legal advice, which are not required in the case of a membership of coworking space. In the case of a self-contained office, there are initial costs for equipment, tenant fit-out and more comprehensive office technology. This expense must be paid up-front or financed and is in some cases lost, as is the case with tenant fit-out at lease termination. Financing costs are not taken into account. There are also the refurbishment works. Furniture remains the property of the tenant upon lease expiry and is a more important consideration in the case of long-term letting decisions.

The total pre-contract costs for a self-contained office are significantly higher than for coworking space (around €60,000 compared to €14,000). But the monthly cost for the membership of the coworking space is around €1,300 higher. This is hardly surprising, as this is an inclusive fee and the coworking center operator’s costs must be remunerated through the monthly income. Looking at costs over a term of three years, both working models come to an almost identical cost of around €187,000. Over a period of just one year, the cost for a self-contained office is €102,000 and for a coworking space it is €72,000. Over a five-year period, the costs for a coworking space (€302,000) exceed the self-contained office (€271,000) by 11%.

The coworking trend continues to grow. The company rent24 is opening a combined coworking and coliving project in Eiffestrasse in 2018. WeWork has already rolled out the WeLive concept in the USA and is active in the leisure segment with WeWork Wellness. The study concludes with the expectation that the coworking boom is likely to continue, as people continue to pursue more flexible lifestyles and work conditions.

The post JLL Study: Coworking is More than Hype appeared first on Archipreneur.

Automation is gaining momentum in the industry as a way of optimizing both the design and the construction sectors. An increasing number of AEC companies, like Intsite, are starting to embrace automation and machine learning in order to streamline services and organization.

According to VentureBeat, the industrial robotics industry is expected to be worth $71.7 billion by 2023, which largely explains the recent spike in attention among entrepreneurs and venture capitalists. One of the most notable breakthroughs in the area happened recently, when Tel Aviv-based company Intsite, announced a $1.35 million pre-seed round, led by Terra Venture Partners and the Israel Innovation Authority, to fund “the world’s autonomous crane technology”.

Intsite Construction-Tech Startup

Intsite aims to increase construction site productivity and safety by developing a platform that taps computer vision to analyze camera feeds in real time, ensuring tower crane operators are made aware of workers and obstacles within range. Their technology, which is based on a combination of aerospace tech and state-of-the-art algorithms, can improve a crane’s precision by up to 30 percent.

The crane, as the control tower of the construction site, oversees the construction progress. Getting insights from the crane will allow the construction team to follow and influence the construction process, resulting in better, safer and smarter projects. With its Internet of Things (IoT) device, machine learning, computer vision, and natural language processing technologies, Insite’s solution can increase cranes’ productivity and reduce costs.

The technology has already been tested on a construction site owned by Shikun & Binui Solel Boneh, one of Israel’s largest construction companies, and the firm is planning to pilot the system in the UK and France early next year. Currently, the Intsite team is working out of the incubator TerraLab, created by Terra Venture Partners.

With a market cap of some $716 million, Shikun & Binui set up an innovation program in 2015 called BuildUp, which focuses on identifying and implementing innovation in its production processes — from designs to workflows and products and communications with customers — in the areas of energy and water, infrastructure and construction.

The post Intsite Raises $1.35 Million for Developing AI-Powered Cranes appeared first on Archipreneur.

Bringing in new work while handling the daily ins and outs of running a company requires a combination of talent, skill, team effort, a great business plan and smart organization. Particularly in the moments that call for scaling up, it becomes apparent that architecture is an industry in which technical knowledge, management, and business understanding are as important as good design.

The Hinge Research Institute recently released their new their 2018 High Growth Study which took an in-depth look at AEC firms in order to determine why some grow faster than others. More than 1,000 companies participated in the study and architecture, engineering and construction services firms made up more than 21 percent of the sample.

The study showed that the habits and priorities that drive higher than average growth numbers can be broken down into three categories. High growth firms are:

• Focused on understanding the marketplace and are nearly four times more likely to perform regular research on their target markets.
• More likely to specialize and recognize skills that set them apart from the competition.
• Quicker to adopt digital marketing tactics and content marketing. They also attend more conferences and events.

#1 – Develop Policies and Procedures

In today’s competitive market, effective strategic management is paramount for sustaining a business. Committing to a new strategy can be daunting and seem at risk of somehow cutting off possibilities and options. To avoid this, firms are advised to develop a structure that will increase the odds of success. To start, create a list of shared, general goals which are then broken down to specific, measurable objectives with precise targets. These decision-making processes should relate to organizational structure, staff recruitment, sales message, pricing, management, leadership and marketing approach. By setting office standards, you make the onboarding process for new hires faster and more efficient. This will save time, cost and avoid the frustration of training simple processes and answering repeated questions.

#2– Research Markets for Growth Opportunities

In an interview with Architect Magazine, new HOK CEO Bill Hellmuth explained the firm’s recent foray into sport and hospitality: “We re-established our sport practice a little over a year ago when we merged with 360 Architecture, which had some original HOK-ers in it. So, we’re back in the sport practice. Where growth opportunities occur is not just in sport but the intersection of sport and master planning and what happens when you add a sport venue to an urban district… We also recently merged with a [global] hospitality firm [BBG-BBGM] and we’re now looking at the intersection between hospitality and healthcare.”

Don’t be afraid to enter a new sector. Architectural thinking and project experience can be valuable across various building markets and you may surprise yourself by offering more than you think.

#3 – Work on Your Brand and Market Positioning

In order to differentiate themselves from the competition, business owners need to understand what they do and where they want to go. What will naturally emerge from this understanding is an idea of marketing as a natural extension of their company’s work ethics, company culture and service quality. Sheela Maini Søgaard, CEO and Partner AT Bjarke Ingels Group, confirms this stance in her piece for Design Intelligence: “As long as we continue to create stories from the way we genuinely approach design, our marketing will be organically derived rather than contrived. Once you have originality and integrity in your communication it is simply a question of finding the right tools and outlets.”

#4 – Strike a Balance between Exploitation and Exploration

In a popular TED Talk business strategist Knut Haanaes identifies the main reasons why companies fail. According to Haanaes successful companies create a balance between exploration and exploitation, competently doing more of the same as well as doing what’s new. Focusing only on exploitation–providing the same proven services or product–may not be risky in the short-term, but it is a risky strategy in the long-term. Investing in research and development is crucial, as it will allow you to stay on top of business, technology and marketing trends.

#5 – Hire Smart

Once in position to take on larger projects, hiring new people can make a huge impact on the stability of the firm. If the firm plans to work on several larger projects simultaneously, it needs reliable employees who understand the company culture and project managers that can help come up with realistic goals and set achievable deadlines. It could be useful to create a list of essential competencies for new hires and a set of responsibilities for each position within the firm. The way you select new hires will have an impact on whether your firm’s culture thrives or crumbles. In fact, CB Insights found that among the top three reasons why startups fail is not having the right team.

***

It’s important to remember that there is no one-size-fits-all strategy for scaling up. Read up on the experiences of successful archipreneurs, talk to experts in scaling up, friends and colleagues who have done it before, and come up with a solution custom-tailored for your business.

The post 5 Tips to Make Your Architecture Firm Ready for Growth appeared first on Archipreneur.

Becoming one’s own boss comes with a set responsibilities and requirements that go far beyond design excellence. Aspiring archipreneurs– fresh graduates and working architects alike– need to familiarize themselves with the best business models, marketing strategies, efficient life-work habits and optimal organizational skills in order to compete in today’s cut-throat market.

Thankfully, available and easily accessible information on entrepreneurial practices is rapidly growing. People are now free to choose from a variety of formats exploring innovative business models and strategies–from podcasts, YouTube videos, and e-books to seminars and online courses.

Here we have compiled a list of 7 online courses that will get you started on your archipreneurial path.

#1 Becoming an Entrepreneur

edX is a huge open online course (MOOC) provider, hosting online university-level courses in a wide range of disciplines. This course, designed in partnership with MIT, promises to provide essential information on developing new business ideas, doing market research, designing and testing offerings and pitching. The course follows LaunchX’s successful approach to entrepreneurship that leverages MIT’s Disciplined Entrepreneurship, lean methodologies, and design thinking. It includes a combination of short videos and activities that will challenge you to get you away from your computer screen and into the community to make a real impact. Head over to their page for more in-depth information.

#2 Entrepreneurship for Engineers

This course, which TU Delft designed specifically for engineers, will help and encourage you to start a successful technology-based venture. If you want to build products for the AEC industry, you might benefit from the fact that the modules are presented by experts in the field of entrepreneurship and technology. Among other activities, you will work on your idea in a team environment and be able to use specific examples of founders and start-ups. The course closes with the creation of a two-page business plan and a video pitch.

#3 UNREAL: Virtual Reality for Architectural and Industrial Visualization

This course on Lynda.com gets right into a specific area of virtual reality (VR), which is taking the AEC industry by storm. Visualization studios are increasingly investing in VR gear and developing their own software solutions for the real estate market. If you are familiar with creating 3D content, this course is for you. Here you will learn to take Unreal Engine 4 (UE4) visualizations to a new level with VR and tackle some of its common issues like motion sickness and problematic scene navigation.

#4 AIA Entrepreneur Summit 2015: New Models (Part Two)

The American Institute of Architects has rolled out a number of useful online courses that explore entrepreneurship in architecture. Here, a panel of experts examines how architects can create new revenue by expanding practice and embracing new business models. Moderated by AIA Chief Economist Kermit Baker, the expert panel explores different development opportunities, and factors influencing the decision process around undertaking a new business venture. One of the panel members is famous architect-turned-developer Jonathan Segal, who has designed, developed, and constructed several award-winning housing projects in California.

#5 Three Firms’ Approach to Integrating Research in Practice

Integrating research into your practice can not only improve building performance, decrease environmental footprint, and cut construction costs–it can also help you find new clients and grow your business. In this course, three firms share their experiences in funding and implementing research initiatives. They present case studies spanning scales from thermal bridging to thermal comfort to resiliency planning—and discuss how these initiatives impact their work.

The course will help you define and identify methods for supporting and funding research, articulate how the results of research efforts can be incorporated into project work, office culture, and marketing efforts.

#6 Exploring Entrepreneurship in the Creative Professions

The NewSchool of Architecture & Design in San Diego designed this course for those who would like to use their creative expertise to become an entrepreneur. Here you will get the opportunity to examine the entrepreneurial mindset and to compare your skills, strengths, and goals to those of successful entrepreneurs, explore core elements required for business modeling, review your venture plans and executive summaries, as well as build your own brand.

#7 The Lean Startup

This course provides you with the opportunity to learn about the field-tested philosophy of the Lean Startup method from its creator, Eric Ries himself. Eric brought in all of the leaders in the movement to talk to you about what lean startup is and how to implement it into your company. Eric has personally taken the most important aspects of Lean Startup and condensed it into a single course, adding a few dozen case studies of it by including bonus material from the definitive conferences on the subject. Head over to Udemy and check it out!

***

Could you recommend any more great online courses? Please post them in the comment section below!

The post 7 Online Courses that will Get You Started as an Archipreneur appeared first on Archipreneur.

For decades, the real estate community has perceived architects as “artistic” types who design well but can’t crunch the numbers. This stereotype has become somewhat rooted in reality because of the flawed education system lacking in business instruction. Thankfully, over the last decade, there have been studios and individuals who proved that the transition in real estate development from working strictly in design to having more creative and business control is a viable option. Compared to other archipreneurial business models, architects pursuing real estate development is one the riskiest endeavours because of the cut-throat nature of the industry and the difficulty of getting a in the door. Nevertheless, it is possibly the most rewarding path.

Even should you feel that you lack business skills, background in architecture can give a competitive edge because you understand the process of building. For instance, many project managers in smaller architecture firms perform various roles such as recognizing potential locations that real estate developers might miss and spending a lot of time honing presentation skills. Additionally, over time, most working architects gain experience in specific typologies or areas in the AEC industry. This familiarity coupled with the ability to gradually add real estate development to their portfolio allows these architects to become design-builders.

In deciding to make this shift, your first project will depend on several circumstances including whether you already have a day job and want a low-risk scenario or if you’re completely dedicated in time and resources to pivoting towards real estate. Alternatively, you could take relevant courses, earn a MBA or real estate development degree, reach out to experienced peers for advice or mentorship, and look into work opportunities to learn and build competency under knowledgeable people or real estate developers.

Different Approaches to Become an Architect as Developer

For more specific scenarios, the following are proven paths on which to transition from architecture to real estate and become an architect as developer:

Build Your Own House

According to the acclaimed architect-developer Jonathan Segal, building your own house is the No. 1 recommended course for architects who want to start developing their own projects. You are able to cut design costs, learn about the different aspects of real estate, build a network of collaborators, and perhaps create a blog documenting the entire process in order to reach out to potential clients and other interested parties. As such, the completed project can be an excellent marketing asset and turn you from a DIY builder into a design-build expert just like Zeke Freeman, principal architect at Root Architecture + Development.

Renovate Existing Buildings

Once you’ve found and bought the right property to renovate, you need to arrange financing. To avoid overinvesting and overcomplicating the design of a first development project, you can take out a mortgage or a bank loan; release equity from your own property to re-invest in the new; or sell, rent out, or remortgage the renovated property. If this seems like a plausible path for you, a inspiring example of an architect who got into real estate development through renovation projects is Cary Tamarkin. He purchased and renovated 140 Perry Street in New York’s West Village at the tail end of a recession, a beginning success that led to his firm being one of the leading design-builds in the United States.

Build Co-Housing Communities

To learn on site and avoid assuming all the risks of development, residents and architects are able to have more control over project development by building co-housing. The two most common models of this are co-operatives and condominiums. These differ in terms of ownership, financing, and the architect’s level of involvement. By teaming up with communities, architects can share financial risks, receive part of the profit, and get their project off the ground. For more on personal experiences with co-housing, check out our interview with Berlin-based architect-developer Matthew Griffin.

Crowdfund Your First Project

By generating public excitement about your project from its origins to its completion, you can use several models of crowdfunding, a route specific to the online world. These can be small, innovative prefab structures, projects on locations of great public interest, etc. You can choose to use the donation-, reward-, pre-sales-, lending- or investment-based crowdfunding options, as well as choose between different types of campaigns to mitigate financial risks. If you’re looking to learn more on this topic, here is comprehensive list of all the crowdfunding models architects can use to finance their first development projects.

***

What are your experiences with getting a project of the ground? Please share your experiences in the comments below or join The Archipreneur Community to meet your fellow Archipreneurs.

The post 4 Ways to Become an Architect as Developer appeared first on Archipreneur.