Written by Mike Kriel, CEO of Launch Workplaces
Launch Workplaces opened its latest location in Washington, D.C.’s Navy Yard neighborhood in February 2024.
Working collaboratively with the building owner at 99 M St. SE, we transformed a vacant floor into an active coworking space in 60 days—pre-selling to 15% occupancy pre-launch—for six dollars per square foot.
Here’s how the process unfolded.
99 M St. SE: The Backstory Behind the Latest Launch Location
This whole thing is a bad luck story.
In late 2023, the owner of 99 M Street SE in the Navy Yard neighborhood of southeast Washinton, D.C., contacted us.
The challenge they faced was that another operator had held a lease agreement with the building owner a few years ago. Together, they had built out two floors—about 23,000 square feet each—and they brought them to market at the peak of the pandemic.
Ultimately, the operator gave the space back to the owner because it simply wasn’t going to be successful at that time.
The building owner sat with the space for a few years and let the pandemic run its course.
Then, eventually, they started looking for the right partner to take over where the previous operator had left off.
The Partner Search: How Launch Came Into the Conversation
The building owner had a couple of different flexible office space operators take a look at the space. They were interested in doing a deal but couldn’t get comfortable enough to get it over the finish line.
Eventually, the building owner was referred to Launch Workplaces.
After our preliminary conversation, we did our homework and shared our views on the current market and our affinity for this part of town.
We struck a deal incredibly fast—around four weeks from our first meeting. Launch took one full floor and started our renovation process in January 2024.
Successful Coworking for $6 per Square Foot: From Vacant Space to 15% Sold in 60 Days
We did not make many changes to the physical asset. The original buildout was gorgeous. We wanted to ensure everything worked, the lights were on, and hospitality was infused into the space.
Unlike many other operators, we don’t demand demolition and rebuilding. Instead, we examine what already exists in the building and opt to work with what we have.
Our team started prepping and marketing for the space in January 2024, and before the location opened on February 1, 2024, we had pre-sold 15% occupancy—a monumental achievement in today’s market.
This space had been vacant for three-plus years. And, within 60 days, we had done a thorough market analysis, evaluated the space, provided real numbers to the owner, signed the deal, and rebranded, marketed, and began selling the space.
That said, the owner spent less than $6 per square foot to get this space up and running.
Spotting Opportunity: Why 99M Made Sense for Flexible Office Space as a Launch Location
As a flexible space operator, we knew this part of town had a lot of potential for success with coworking.
The area has been undergoing a makeover for a few years. It is new and vibrant—there’s so much growth here because it attracts everybody’s attention.
We recognized that the demographics we chase are prolific here, which helps ensure we have the opportunity to fill the location with members.
The amenities we value in a building are all present—they’re top-tier and virtually brand-new. The building is Class A. And the owners understand what flexible office space is and how important it is to have it in their portfolio.
On a micro level, that’s all very appealing to us.
On a macro level, we have a couple of DC locations, and we want to be careful not to saturate or cannibalize ourselves.
This Navy Yard project puts Launch in four corners of the DC market, including Glover Park, The Ring Building, and Watergate. It fits very nicely and ensures that you’re not too far from a location, no matter where you are in DC.
It was a perfect final piece to the puzzle for this city for us.
The Right Partnership: Why Launch was the Coworking Operator of Choice
The true sense of partnership was the key to creating this partnership.
When we toured the building and spoke with the owner about its potential, we explained that Launch Workplaces was ultimately a service to help put more people and activity in the building from a holistic perspective. We act as an amenity of the building.
We are adamant about working collaboratively with our partners and acting in lockstep with the owner to achieve the building’s goals.
Ultimately, Launch Workplaces is a business, and we also want to make a profit, but we do it with the entire building in mind. Everything we do is viewed through the lens of what’s best for the building.
Doing the right things for the building helps us as a business.
The Key to Success: Considerations for Finding the Right Coworking Partner
If you’re considering bringing a coworking operator into a vacant space in your building—whether it’s to replace an existing partner or to backfill a large vacancy—be patient.
Don’t act hastily. The key is to find the right partner rather than opting for the first person who reaches out. The national brand that sends you a templated email with a one-pager and five years of pro forma number isn’t always the right partner.
Make sure you do your homework as an owner and pick a like-minded partner who fits with the strategic vision of your building and the culture that you have as an owner.
If you’re looking for a professional workspace to elevate your business operations, you’ll find it at Launch. Book a tour of your local Launch Workplaces today.
