This week’s interview is with Bruno Haid, founder of Roam – A “Space as a Service” startup.

Initially growing up in Austria and later living between San Francisco and New York, Bruno was used to not having a fixed home, and he became accustomed to working from anywhere. Bruno had the idea to turn this nomadic style of work into a business, and so he established Roam, a company that offered co-living and co-working spaces with a “Space as a Service” business model. At the time of writing, Roam is available in four cities: Miami, Bali, Tokyo, and London.

I met Bruno in an area of Berlin where you can already find a number of “Space as a Service” businesses such as hostels and co-working spaces – but no co-working/co-living options to be found. Coincidence? We will soon find out!

Bruno hires local architects and developers for each of his “Space as a Service” projects. For his first location in Bali he worked with Alexis Dornier, who we interviewed for Archipreneur Insights in 2016.

Keep on reading to learn how Bruno reached his goal to offer space as a service locations worldwide, and hear his thoughts about how changes in society influence modern living.

If you are a ‘work nomad’, be sure to check out Roam and all it has to offer!

Enjoy the interview!

Could you tell us a little about your background?

I am a high school dropout. I dropped out when I was 17. I was studying at one of those rigid, educationally questionable institutions you tend to get in Austria. I initially started out as a designer, all self-taught. I think in ’94 I accidentally came across the first HTML tutorials, and I remember there was a German lifestyle and culture magazine called Max – I don’t know if those guys are still around, but they were popular in the mid ‘90s, shortly before everybody started listening to Kruder & Dorfmeister and wearing Helmut Lang. This magazine influenced my move into design. I always knew I had a passion for architecture, despite having no formal training in it.

Right now, I find one of the most interesting areas of work is in organizational design. How can you create an incentive structure, for example, that works for everyone?

When did you decide to found Roam? Was there a particular moment that sealed the decision for you?

I founded Roam a little over two years ago. There was no particular moment that I can think of, but I had a couple of influences. First, growing up on a farm with a bed and breakfast in the Alps helped me to visualize the hospitality aspect of Roam. Then there was the constant moving around: Five years ago, I was living between San Francisco, New York, and a couple of other places. I was broke but could fly cheaply, so I was basically bouncing back and forth between housesitting for friends and sleeping in whatever guestrooms were available. In my 20s, I had been focused on finding my own place and having my privacy. But travelling back and forth between places changed my mind-set.

I think the crucial moment for me came about two and a half years ago when I was doing some consulting work and a friend mentioned that there was a city in Bali called Ubud. Seeing the co-working spaces and the coffee shops there, I started to realize that I really could live and work from anywhere.

I had also started a co-living space in San Francisco about four years before that. That, coupled with my previous experiences, was how the itch to create something more came about.

Roam questions the traditional concepts of housing with a “Space as a Service” approach. I heard you mentioning the Bauhaus attitude – I like that notion. Could you elaborate?

I think that what sets Bauhaus apart from Bjarke Ingels, for example, is this tradition of craftsmanship that started in a very theoretical, abstract age of architecture. There was an ambition to see how to do things differently, practically, and thoroughly. That attitude brought you a ‘House and Home,’ a Frankfurt kitchen, and so on – those really well-thought-through elements of housing that then came to define the next hundred years. So, the Bauhaus attitude refers to an approach to tinker but also think things through.

So, do you think that contemporary housing will soon be obsolete?

Obsolete is maybe a bit harsh. Just like in financial services and other areas, things exist for a reason. You don’t have to abolish and disrupt everything in order to make a change. At the same time, a lot of the things that define housing – like kitchens – are a hundred years old, but if we all live two months here and four months there, or if we change flat mates and/or relationships, what are the effects on the kitchen?

The Bauhaus movement asked this question a hundred years ago. I think you can re-ask this question. As a result contemporary housing might not be radically different on the outside, but it might be different in the details.

Let’s talk about the buildings that you converted into co-living/co-working spaces. How did you find them?

We wanted to act globally from day one, with one location on each continent. We initially didn’t want to open a location in a tier one city because you don’t have a lot of room for experimentation. If you have a real estate asset in New York, for example, you’d better know what you’re doing.

We initially started looking for buildings in Mexico City but instead found a great place in Miami, entirely by chance. Bali happened on purpose because we knew that it was an up-and-coming location, an independent’s paradise with co-working spaces and a really good infrastructure. So, it’s a place where you can feasibly live for a couple of months. So, Miami and Bali were the first locations. London came later.

Did you do the location scouting by yourself, or did you get locals to look for you?

We do have a team of location scouts, but most of the time it has been a case of ‘someone who knows someone who knows someone.’

Different asset classes go to different cycles, so the traditional ecosystem can’t help you that much. Yes, you can ask commercial real estate agencies like JLL or CBRE, “We need a mid-block 25 to 75 unit hotel in a major American city,” and then they will produce a list. But in most cases it doesn’t work that way.

If you look at our partner list, you’ll find innovative place makers who don’t shy away from operating in neighborhoods that are in an early stage of development, or simply who aren’t afraid of doing more interesting things.

The buildings we looked for are not necessarily those that are also on the radar for traditional commercial real estate agencies.

What is the business model behind Roam, and how do you finance your projects?

The business model is quite simple. It is a space as a service model: We lease a building, rent out single units, and try to make about a 20% profit margin. Our basic business model is to take on long-term leases, give people flexibility and services, and charge about 20% – the profits fund the company. (A “Space as a Service” business model)

Do your tenants pay monthly or is there a subscription model?

The goal is for them to subscribe. Right now, you can say that you need a place for a week in London, and you can book yourself into Roam London based on availability. But this is because we currently have just four locations.

The goal is for us to become our customers’ primary housing provider, so that instead of signing a lease or buying an apartment you sign up with Roam for a one or two year period, and in time you’ll be able to choose from a number of beautiful and exciting cities as your next destination.

And for each project you hire different architects and developers?

Yes. That idea is something that we stole from a supermarket chain where I grew up in western Austria. They do something really clever: They take their budget and go to young architects who have perhaps only developed one or two single family homes or who have carried out a rooftop conversion somewhere. They give these architects their budget, tell them their functional requirements, and allow them to go crazy in designing the supermarket. The great part is that not only has every second of these supermarkets won an international architecture prize but they have also become the cornerstones of their rural communities.

The biggest organizational challenge for Roam is: How can we create a system that makes it possible to create a unique but also reliable inventory? If you look at hotels, for example, you can either have an inventory that is very unique but doesn’t really scale – the starchitects who have perhaps developed five legendary boutique hotels but who have never built an organization that can sustain more because it’s dependent on one or two people – or you can have something like WeWork (the large space as a service co-working company) where you don’t exactly know whether you’re sitting in Berlin, San Francisco or China.

The solution was to let go of our ego and let others design something that’s highly localized. The aesthetics and architecture of our buildings are completely different, and so we didn’t want to create a ‘one size fits all’ model.

The building in Bali, for example, is a contemporary boutique hotel, while the building in Miami is one of the city’s oldest standing structures. Nevertheless, we are very opinionated about how our communal kitchens look: We put out the cutting boards each morning with a single white cloth and a knife; the protocol there is very clear!

What is your role in the development process?

As a CEO, you try to make sure that everything fits together, so I would say that my role is in designing the organizational structure. I can say that I’ve succeeded in my job when the organization says, “We don’t really need you anymore. We’re good.” That’s what I try to aim for!

How many users/subscribers does Roam have?

We have about 1,100 ‘Roamers’ to date.

When did the first location open?

A little more than a year ago in Bali, which was developed by Alexis Dornier.

We interviewed Alexis, so I have seen pictures of the location. It is very beautiful.

It’s an amazing space. It’s a combination of his ‘nerdy’ architectural approach and the local flavor from the craftsmen who built it. They have created something really magical together.

A lot of architects would say, “Let’s combine East and West. Can we put a Buddha over there, next to the exposed concrete?” But Alexis is someone who really digs deep when it comes to questioning the underlying principle. That could mean anything from exploring the social construct of a home, through understanding how families live together, to designing a specific method of suspension. He has designed a restaurant, for example, that’s entirely suspended from metal scaffolding. It’s amazing.

What are the future goals and plans for Roam?

The immediate goal is to follow through on our promise that you can live anywhere. Going truly global is obviously a long-term goal for us, but we want to be in at least 10 to 12 cities by the end of the year, which will hopefully include Berlin.

Is that why you are in Berlin right now?

We are actively looking for places in Berlin. It’s pretty high up on the list. Hopefully, we’ll be able to announce something this year; it depends if the building is a ground-up development or if it needs general renovation. We’ll hopefully make an announcement for Berlin either this year or early next year.

Do you have any advice for archipreneurs who are interested in starting their own business?

Just do it, step by step. Trust your instincts and show up every morning.

What I found surprising, having established a couple of companies that didn­’t work out, was how the simplest of ideas can turn out to be the most successful.

There’s this huge tendency, especially in Europe and especially if you are doing something creative, to over-intellectualize. But creative innovation isn’t the most important thing, it’s more about just getting on with it and having the stamina to keep going, to trust yourself and to give yourself time to make a success of your business.

Thinking that everyone else is more successful and doubting yourself is not helpful to becoming an entrepreneur. The most interesting and the most successful people have struggled for a long time. They have taken their time to get everything together, but then they did it. And they did it with consequence, in the good times and bad, and they followed through. This is what leads to great outcomes. That can be true for a great number of people, not just architects.

How do you see the future of the architectural profession? In which areas (outside of traditional practice) can you see major opportunities for up and coming developers and architects?

I am most interested in the changes made in social contact. It might be a selfish answer because Roam is specifically working on that, but I honestly believe that we’re all just getting started in this area. If you look at city architecture, then everything has traditionally been built around cars and highways. But that’s changing: Cities are now frequently looking to the developments in automation and the potential of smart cities, so how does that change architecture? The philosopher Peter Sloterdijk talked about bubbles, and he is constantly moving back and forth between bubbles and comparing them.

These changes in focus have huge implications for everything from residential real estate and office spaces to retail and urban planning. For that reason, I think the biggest opportunity for architects is to take a closer look into how society is changing and how infrastructure can be rebuilt based on those changes. Of course, some of this is technologically driven – we now have parametric designs and competition capacities that enable the construction of buildings – this would have been impossible some 15 years ago. Perhaps, by combining technical capabilities and new materials with the rapid changes in society and culture, we can start to realize the future of architecture.

About Bruno Haid

Bruno is founder and CEO of Roam. He grew up in hospitality, in a tiny Austrian village, built a couple of startups and led large-scale projects for corporates like McKinsey, BMW or Swarovski. He’s also a founding tenant of co-living spaces on 3 continents, and writes something about housing and hospitality on Medium approximately every decade, but wants to get better at it.

His perfect Roam location is directly bordering a Canadian mountain range, a beach in central America, the New York MTA system and a good resolution of his childhood issues.

The post Space as a Service: How Roam is Building a Co-Living Business for Digital Nomads appeared first on Archipreneur.

2016 was an exciting year for architecture trends. While we still haven’t started travelling to space – though we are a step closer thanks to a successful rocket launch and landing SpaceX accomplished earlier this year – technology has been significantly impacting the way we inhabit cities.

Designers have been experimenting with innovative, intelligent building materials, car manufacturers are rolling out self-driving models, and urban infrastructure is relying more on connectivity to optimize everything, from commuting to working. Many among these are long-term architecture trends that have had breakthroughs in the last year, which promise to continue into 2017.

Here are the 7 most significant architecture trends affecting the built environment that will shape the upcoming year.

#1 – Urban Connectivity

Connectivity extends far beyond Internet access. In fact, several companies across the globe are currently working on integrating tech products into urban environments in order to improve transportation, social services, health and public spaces. We have already written about Sidewalk Labs, a “smart-city” company owned by Alphabet Inc., which creates digital products through public-private partnerships to provide ubiquitous connectivity, real-time sensors, precise location services, distributed trust, autonomous systems, and digital actuation and fabrication.

Several incubators targeting urban environments are creating funding opportunities for companies that greatly influence how we live, work and commute. Y Combinator already funded companies like reputable Airbnb, among others, while Impact Engine supports early-stage, tech-focused businesses that change neighborhoods and urban conditions in the Chicago area.

#2 – Autonomous Transportation

Self-driving vehicles are promising to revolutionize the transport industry, which will greatly impact the built environment. Car manufacturers are rolling out models that are already hitting city streets. Last August, Singapore has become the first country in the world to launch a self-driving taxi service, beating Uber by a few days to public road tests. US-based start-up called nuTonomy received permission from the Singapore government to test self-driving cars and start testing with passengers.

Last December, Uber brought a small number of self-driving Volvo luxury SUVs to San Francisco. Another interesting trend – drones – is getting into the transportation race. Chinese drone manufacturer Ehang has created a vehicle capable of autonomously transporting human passengers and their luggage. Aerial drone delivery companies like Flirtey and Matternet are also developing solutions for air traffic. It will be interesting to see what 2017 brings for autonomous transportation.

#3 – Space Sharing

The sharing economy is expanding to include an increasing number of industries. WeWork has come to the forefront of the “space as a service” trend as one of the fastest growing consumers of office space, transforming a real estate business. The company has recently begun testing its first residential offering – WeLive, which brings a “co-living” philosophy into the world of residential real estate. WeLive links tenants with living areas that share kitchens and bathrooms. According to company documents – as Nasdaq reports – WeLive is expected to bring in about 21% of the company’s total revenue by 2018.

Last December, Airbnb has started investing in Home Sharing Clubs – host-led local organizations – around the world, closing out 2016 with 112. The emergence of Club-like organizations is an important trend to watch in 2017.

#4 – AR/VR

Augmented reality and virtual reality are being used in architectural design and real estate with increased frequency. Architecture studios are embracing VR as a way to optimize communication with clients and speed up the design process. This trend is expected to grow in 2017, with firms like NBBJ developing new, immersive solutions. NBBJ has already developed a self-contained venture Visual Vocal to built a VR platform integrated into the firm’s design process. Computing chipmaker NVIDIA conceived a VR demonstration of the completed building powered by NVIDIA products. The VR headset allows Gensler designers to navigate the model of the structure and notice design flaws that could be easily missed in a 2D environment.

According to digi-capital, the virtual and augmented reality industries will be worth $150 billion dollars by 2020. Virtual home experiences are expected to dominate 2017, and can potentially get into architecture schools.

#5 – Entrepreneurship in Architectural Education

Speaking of schools, entrepreneurship seems to be increasingly taught to architecture students. Architecture schools across the world are starting to offer bachelor and master programs in entrepreneurship and real estate development.

The Parsons School of Design offers an undergraduate minor in creative entrepreneurship, while a Penn State-sponsored business accelerator program aims to help student entrepreneurs turn their innovative project into reality. Canada’s Ryerson encourages its students to participate in a variety of projects that allow them to gain skills in architecture that are not taught in class.

The School of Architecture and Planning (SA+P), one of five schools at MIT, launched an entrepreneurship accelerator, DesignX, which allows students to “make the critical leap from project to startup”. DesignX will include a four-month, for-credit accelerator workshop through which participants will get a chance to pitch to outside investors and industry partners.

#6 – Material Innovation

The Multiscale Materials Laboratory at Rice University is working on developing what they call “programmable cement” which can allow designers to control the kinetics of cement to get desired shapes, the morphology and size of the basic building blocks of C-S-H. This way they can self-assemble into microstructures with far greater packing density compared with conventional amorphous C-S-H microstructures.

Another common material that is gaining momentum is timber. Architects are increasingly using this rapidly renewable, carbon sequestering material that environmentally outperforms concrete and steel. In 2016, PLP Architecture and researchers from the University of Cambridge have revealed a concept for London’s first wooden skyscraper, architect Michael Green completed the largest mass-timber building in the United States – a seven-story tower in Minneapolis called T3.

Companies like Solar Roadways and Wattway are developing solar-harvesting road surfaces, while power-generating textiles are being experimented on at the Georgia Institute of Technology. This fabric harvests energy from solar and kinetic sources and is highly flexible, lightweight and consists of widely available, environmentally friendly materials.

 #7 – Sustainability

From energy to transportation and architecture, industries are steadily moving towards sustainable practices. 3D printed buildings, like the world’s first 3D printed office in Dubai, also influence the costs and environmental impact of the AEC industry. Cities are moving toward clean energy and a green economy.

After completing the Vertical Forest tower in Milan, Italy, architect Stefano Boeri has recently announced a similar design to be developed in China. This will be the first project of its kind in Asia.

Malaysia’s Forest City is set to become Southeast Asia’s largest mixed-use green development. Sasaki Associates designed the $40.9 billion master plan as an ecosystem that mimics the natural coastal ecologies of the region.

Urban Renewal and farming Projects are also a path to more sustainable cities. Some of the largest are The Los Angeles River Revitalization, Green Square – Australia’s biggest urban renewal project – while the Chinese megacity of Shanghai is set to realize the Sunqiao Urban Agricultural District.

The post 7 Urban and Architecture Trends to Watch in 2017 appeared first on Archipreneur.

Some of the most innovative and profitable companies in the world base their business models on commercializing untapped resources. Facebook has relied on its users to generate content and data for years, and organizations are starting to realize the value of gathering, processing, storing and taking action on big data.

In the AEC industry, some companies are discovering the hidden potential of excess energy that is generated by buildings, while others are looking to utilize large roof surfaces of mega-malls and supermarkets for harvesting solar energy. Airbnb has turned underused living units into assets, and allows people to generate additional income by renting out their homes to travelers.

The traditional notions of ‘private’ and ‘public’ space are eroding under the influence of a sharing economy and technological advancement. Space is being recognized as a profitable commodity in itself.

The commercial real estate industry is undergoing similar changes. Co-working spaces are sprouting in big cities, with building owners finding ways to make profit from underused desks and offices, targeting an increasing number of people who telecommute or work away from their main offices. In fact, The Bureau of Labor Statistics estimates that by 2020, about 65 million Americans will be freelancers, independent contractors and solopreneurs, and will constitute about 40% of the total workforce.

According to a 2014 All State-National Journal Heartland Monitor Poll, millennials prefer to work in places where they can find a community of like-minded people. Several other polls have confirmed that millennials want a “fun and social” workplace, flexible work hours and place value on lifestyle and traveling. They are less interested in buying property, but are willing to spend money on experiences and events. Increased mobility and the rise of the sharing economy are not only changing the way younger generations live, work and travel but also transforming our physical environment.

Finding an office space and setting up the necessary infrastructure for it to operate can be a daunting task for startups. Landlords are usually interested in long-term leases – less than ideal for young companies and freelancers. Recognizing the need for convenience, flexibility, and less liability, companies like WeWork have developed successful business models around the idea of space as a service.

Founded in 2010, WeWork has become the forerunner of the space as a service trend and is one of the fastest growing consumers of office space in New York City. Recognizing the disappearance of 9-to-5 jobs, its founders decided to create a service that would function like a “physical social network”.

Essentially, WeWork transformed a real estate business into a technology platform. The idea of sharing space isn’t new, but WeWork has translated space sharing into a concept closely connected to the lifestyle and work habits of younger generations.

WeWork leases space wholesale from landlords and then sublets it, at a margin, in small blocks of floorspace. The company currently manages over 3 million square feet of space. They offer pay-as-you-go access, or “unlimited commons” membership that allows people to use WeWork locations anywhere in the world. They provide tenants with the Internet, printing services, and beverages, as well as places to relax and take a break from working. The company takes care of everything in terms of actual office management, from utility bills to replenishing the ink in the printer.

The company has recently begun to test its first residency offer. Its first co-living development, located in New York City, currently accommodates 80 WeWork members in 45 apartment units, with plans to house over 600 people across 20 floors. All tenants have access to community events by way of a mobile app, through which they can share cleaning services, laundry and utilities. Provisionally named WeLive, their residential offering is expected to account for 21% of the company’s revenue by 2018.

Micro-rental, on which WeLive’s concept is based, is the hottest trend in residential real estate. The concept is simple: a company rents a large multi-room unit, creates communal spaces and sublets individual bedrooms out to people on a short-term basis. Co-living companies don’t own the property themselves but instead act as property managers.

Abandoning long-term leases for month-to-month arrangements with micro-rentals appeals to millennials who are much more comfortable with temporary accommodation solutions than are older generations. Short-term contracts are best suited for young graduates and professionals who frequently change location or can’t afford to buy their own homes. As an increasing number of 25 to 34-year-olds are living with roommates and staying single for longer than previous generations, mobility becomes the deciding factor in choosing suitable housing arrangements.

A large number of startups are trying out the idea of creating co-living spaces. Up-and-coming businesses like Pure House, Krash, Open Door, and the co.space are tapping into the real estate sector with similar offerings.

Co-living startup Common has recently raised $7.5 million in Series A funding and has announced the opening of a 51-bedroom residence in Williamsburg, NYC. This is the company’s third building in the NYC borough of Brooklyn and the first ground-up development.

The conditions for rending out spaces here are pretty much the same as they are for other co-living startups. What Common does differently to avoid the fate of Campus, a startup forced to close its premises after failing to create “a financially viable business”, is that Common partners directly with real estate companies that buy the buildings. This allows them to save on rent and have greater control over the spaces.

Co-working and co-living spaces are the most dominant types of the space as a service concept. It has proven to be a transformative force, drastically changing the residential and commercial real estate industry. The proliferation of the sharing economy is illuminating the hidden potentials of physical spaces, and changing the way architecture is used and inhabited. This phenomenon could irreversibly change the way in which we design buildings and think about urban development.

***

What other underused spatial resources are you aware of? How would you utilize them in a sustainable and scalable way?

The post Space as a Service: Business Models that Change How We Live and Work appeared first on Archipreneur.