Coworking in a shopping mall?

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Will Bennis, Locus Workspace

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Oct 22, 2014, 6:15:05 AM10/22/14
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Hi All,

Recently a shopping mall realtor approached me about opening a coworking space in their closed gaming zone/internet cafe. I'd love to hear opinions about this, pros and cons. Before you completely ignore this post as coming from someone who is clearly not from the same coworking planet, here is why I'm even considering it:

(1) With respect to the fact that mall real estate goes for a premium: At least where I am, a lot of shopping malls are trying to build in community/space quality features that make going to the mall (which lets face it, most people in urban areas sometimes do) a more human experience: space-taking areas like open art galleries, free indoor playgrounds, exhibition space, gardens, etc. These spaces add value/traffic to the mall as a whole, making the rentable space more valuable. This means that the mall owner may be willing to partially fund a coworking space if it adds value to the mall as a whole. 
 
(2) With regard to the importance of community and quality of the work environment: Sure, malls are horrific. But they're also a reality. Wouldn't creating coworking spaces in the horrific reality of a shopping mall make malls a little less horrific? To the extent you could contribute to the reinvention of malls as more human, community-focused spaces, wouldn't it be a good thing to promote the development of a coworking space in a mall?

(3) With respect to the objection that it wouldn't be sustainable; the kind of people drawn to coworking would not want to do it in a mall: The malls where I am right now have many fast food restaurants (McDonalds, KFC, etc.) with free bad wifi and people working away on their laptops or in business meetings, or higher end cafes where laptop workers aren't as welcome and places to work aren't comfortable or well suited for meaningful work or quality meetings. I would guess many of the people who work in the area or who are just there while their partners are shopping or their kids are at the movies would love a more human space to work. Yes, they're not the people traditionally drawn to coworking, but is there room for something in between?

My big question I guess is whether there would be a way to do this that would create more than the equivalent of a hotel "business center" or an internet cafe? Would there value or demand for a community-focused workspace in a mall? 

Clearly this couldn't be an ideal community-focused and community-driven coworking space. But is there room for something between the ideal and the "business center" in a shopping mall (or airport or highway gas-station/restaurant off-ramp for that matter)? Something that would help build the sense of community and humanity in these largely community-less spaces? Could it bear the coworking name? 

I'd love to hear your thoughts on this. 

Best,
Will

Aaron Cruikshank

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Oct 22, 2014, 10:12:33 AM10/22/14
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Will Bennis

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Oct 22, 2014, 10:46:03 AM10/22/14
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LOL. Not a bad idea. :)

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rachel young

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Oct 22, 2014, 10:56:10 AM10/22/14
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I would think security and noise would be the biggest concerns, after little to no community building. Sure, there's ample parking and food and shopping in the building, and I see your argument for shaping the human experience of the mall experience, and I love to see people thinking of alternate uses of existing space, especially unique spaces that bend the norm.

How would you deal with security that is not as precarious as when someone a cafe? If someone has to go to the bathroom, which in a mall is probably not in the unit but rather a large shared bathroom off the food court, do they have to pack up their things and take it with them? Even to have a meeting if you have a separate meeting room in the unit, a member would still have to pack up their things and move them into the meeting room for meeting, which might affect the professional atmosphere of the small business owner.

Noise would be a huge issue, unless you had a public cafe in one half and could section off a members-only area (with key fob access that would also address the security issue) with a sound proof wall and door. If you look back through this group, some spaces have talked about having a public cafe in their space but, though handy to have the coffee so close, noise transfer was a prohibiting factor for some of them. It can be done successfully, given the structure of some spaces, but noise from a cafe and a mall might be too much for some coworkers to handle if not done well.

If you can find a way to strive for the core values of coworking, the location of the space should matter less, especially if you can prove the business model and ensure you're attracting people who want coworking and not just somewhere to sit with wifi. But ensure that you're not just dressing up an internet cafe by using the fancy word coworking and prove it can be done!
r.



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Mark Gilbreath

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Oct 22, 2014, 11:36:53 AM10/22/14
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Will

There is a good bit of this happening already.   Westfield, a major shopping center owner/developer, recently announced "Bespoke" which they describe as a "co-working, demonstration and event space"  (yes, they used a hyphen :(

We've also seen examples of this in Australia with "Space&Co" a coworking space developed by GPT Group (an office and retail REIT).

I think you ask the right question, about whether a retail environment can be effective as a community driven environment, vs  a more transactional space.    I believe that if well designed and operated it can certainly be the latter.   TBD on whether these new spaces can truly support community.   Regardless, I think its very clear that more and more flavors of workspace are on the come.

Cheers
Mark

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Aaron Cruikshank

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Oct 22, 2014, 1:31:19 PM10/22/14
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I know that we looked at a mall location near the HiVE in Vancouver at one point because this particular mall had ridiculously cheap lease rates but we kept coming back to access. The mall itself wasn't a bad location. It had lots of exterior windows in the commercial units, which was awesome and there were some great amenities in the building but it didn't open until 10am and closed at 1am (there was a movie theatre in the building). If it hadn't been for the weird hours and lack of 24/7 access, it could have worked. Maybe for a satellite location?

Aaron Cruikshank
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Craig Baute - Creative Density Coworking

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Oct 22, 2014, 2:29:38 PM10/22/14
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I think a mall could be a great space for a coworking community. Yes, it is different than many coworking communities today but to many the mall is the central part of their city or neighborhood. If you stick to true coworking values, as you seem to do at Locus, then this could be a great opportunity to try something new. Don't make it sterile, make it fun, make it a community, use the open spaces and courtyards as gathering spots.  It will be interesting to see the shared spaces of malls to be valued in a different way.

In some malls the lease rates are ridiculously cheap and the people are very willing to negotiate. Malls like to have about a 3 to 5% vacancy rate or turnover in a year to keep things fresh for new stores, but they HATE to have anymore than that. That's a huge plus. 

The foot traffic will certainly be a leg up and could be great if you're members are looking for exposure. It's also a great way to expand to be a community hub for gatherings in the social or business area.

Aaron just mentioned limited access hours and that would be a deal breaker so take that into consideration. 

Craig Baute - Creative Density Coworking

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Oct 22, 2014, 2:30:50 PM10/22/14
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Will this be in Prague?

Will Bennis, Locus Workspace

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Oct 22, 2014, 4:41:36 PM10/22/14
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Hi Rachel,

These are good questions. I hadn't though through security much because I haven't thought through basic design enough, but I guess security would be constrained by how open the access was. If it's as open as a cafe, I suppose people wouldn't be able to just leave their laptops on the desks when they go to the bathroom (or maybe every desk would have a bar for laptop locks? or even a box to lock up laptops with reserved seating. When thinking about it, I did imagine a public cafe component with separate members' only area, or perhaps just separate meeting room area with the whole space a kind of coworking cafe. Just at the very beginning stage of thinking about what the space might have. I'm not too worried about the security aspect, as we've had a space with 24/7 access and no real security for four years without a meaningful theft, so I'm probably naively optimistic that security can be dealt with.

Will 

Will Bennis, Locus Workspace

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Oct 22, 2014, 4:42:21 PM10/22/14
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Thanks, Mark! Didn't know about this. Interesting.

Will Bennis, Locus Workspace

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Oct 22, 2014, 5:09:32 PM10/22/14
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Thanks for the reply, Craig. I had the wrong stereotype about mall pricing, which is good to hear. I have to spend some time there and in the neighborhood just to have a more realistic sense of whether there might be some kind of cool community building within the mall. I maybe posted this prematurely but figured it wouldn't hurt to get this community's feedback from the start. Which turns out to be true since you've all been a great help in thinking about this.

I wouldn't say it "will" be in Prague, though I like the confident future tense. :) But it would be in Prague (I'd put the probability at somewhere under 10%, though :).

On Wednesday, October 22, 2014 8:30:50 PM UTC+2, Craig Baute - Creative Density Coworking wrote:
Will this be in Prague?

Will Bennis, Locus Workspace

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Oct 22, 2014, 5:26:00 PM10/22/14
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Yeah, that's what I had in mind, a kind of satellite location. An experiment to compliment the other spaces and learn from. Given that, the limited hours don't bother me so much. It comes with the territory of a mall space, and I also think this part of Europe is just more accepting of limited service hours, including for accessible office/work/community space. There are many successful coworking spaces in the area with limited access hours, and those limits also bring some benefits, such as the ability to have a full-time community manager, fewer issues with security, and even some degree of imposed work-life balance for some of the members (including myself) who I know struggle with leaving the space as early as they "want to" (in the deliberative, rational, delayed-gratification sense of "want", as opposed to the impulsive, addictive, instantaneous gratification sense of "want" :).

Jeannine

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Oct 23, 2014, 6:05:49 AM10/23/14
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I think it's wonderful, Will, really wonderful.   Throw away that box for a sec, it doesn't have to be just a laptop parking lot.  :-)

In the Netherlands they have Seats2Meet in the train stations, in London they have a coworkng space on a bus.  I feel confident that it can be done in a mall.  Particularly as you say since the Euro-version of mall and the associations with same are not exactly then same as the US vesion.

My experience in building coworking community in nontraditional venues has been that you have to start with the location and be true to it in some weird, spiritual way.  :-)  As a gut feeling i would go with companies in retail/online services and one ring around it as a starter.  

I would look at showrooming and reverse showrooming as well.

But I disagree on one thing:  I think the community aspect is the most important; shared space in retail has been quite hot here in the NL but if the coworkers lack long term relationships other than with the space itself, they die off pretty fast.  

Any help, support, brainstorming, cheerleading you may beed, please please do not hesitate to call on me, you know where to find me.  I think it's really exciting!

Cheers,

Jeannine

Will Bennis, Locus Workspace

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Oct 23, 2014, 7:08:56 AM10/23/14
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Thank you, Jeannine! This helps me think about it a lot. And I completely agree with you about the importance of community focus. Just not sure if I can swing it in that kind of context, which of course can't really be answered till I go there and try to figure out a relatively reliable way to ask. :)

What do you mean by "showrooming" and "reverse showrooming"?

Laura Oxenfeld

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Oct 23, 2014, 7:54:03 PM10/23/14
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Let's bracket considerations of noise, privacy, and security of personal belongings.  With those concerns aside, some creative strategic thinking could make a mall space great.  

What is a mall comprised of?  Stores, businesses.  What does every business require?  Paperwork!  A coworking space in the mall creates an opportunity for mall tenant businesses to come together to work on paperwork together and get to know one another.  While stores of large corporations might not be okay with letting employees change the way paperwork gets done, some of the smaller or independently owned businesses might give it a go.  

What else is a mall comprised of?  Lots and lots of employees, many of which are part time.  What kinds of people work part-time at malls?  Of that I'm not sure, especially outside of the USA.  However, I'm guessing that at least a portion of the part time employees are likely university students.  How great would it be to be able to move from working a shift at the mall to studying without leaving the building?  

Such a coworking space might also be a good resource for people who have businesses or work for businesses that make products which can be sold in a mall.  Especially if you can establish some sort of feedback loop between the coworking community and the mall management or managers/supervisors/corporate folks at stores in the mall.  Q&A sessions, workshops that overview how to get a product sold in a certain type of store, etc.  

Also, if there's a bar at the mall you guys can have socials for the coworking community at them!  

Good luck in your endeavor! 

Jeannine

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Oct 24, 2014, 4:15:57 AM10/24/14
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Showrooming is the practice in retail of having a bricks and mortar location where people can look at products, which they then buy online.  It was all the rage about two years ago.  Reverse showrooming is the practice of showing people your products and information online, and selling it to them in a bricks and mortar location.

Both of these practices are improved by making the bricks-and-mortar location a place people want to go to just for itself.  People like to shop in places that are fun.

The tradional function of the city center in the Netherlands as a place people go when they have some free time, as opposed to a place where you are necessarily going to shop, supports both of these and would have to be taken into account I think in putting something like this together.  There have been a couple efforts here so far for "rent a plank" shops to showcase products sold by webshops, but they lack a certain...soul, a core, because they really are just a place where you rent a plank.

In Kamer52 we jut graduated a coworker to their own shop; it started a year ago as a webshop.  They started with our basic membership, which is a rock bottom monthly fee with a pay as you go plan for use of the space and so on.  They then held regular events in our workshop space for their clients, once every month or so, then more often.  They added having a demonstration area in the front room several days a week, part of the space for inventory and packing and so on, and by last spring they were going full bore as a retail operation 6 days a week.  Then they became a wholesale distributor and we had to talk, because at that point their space needs were such that they really would be needing the whole shebang unless we changed our model and focused only on webshops.

Which is doable but not really where I was going.  So they graduated and now have their own shop in the city center.  We still work together on this and that.

I am not saying you have to go with webshops and online services (as they tend to support each other) but it is an option and worth thinking about.  The folks with the laptops generally like it, it's interesting to them and is a lot mroe entertaining than working at the McDonald's.   :-)  But what you should focus on in startign one from scratch will depend very much on local conditions I think.

Connor Provines

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Oct 24, 2014, 1:20:36 PM10/24/14
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Hmm, I imagine a system like this would work best as a large-scale membership style coworking system; that is to say many small locations with universal membership. 

However, the development of a single coworking space in a mall would draw many issues...I imagine the largest two are the size of your space coupled with community, and potentially cost effectiveness. The reason internet Cafe's can work is because of how many people you're able to draw through on an hourly basis...at the same time, a coworking space isn't something you see and just drop into for an hour or so, you plan on going there. So with this in mind Could your maximum membership potential balance out the higher cost of mall floor rental space? Obviously it could work, but its something to consider.

You also run into the issue of hours of operation; from people I've spoken to a large part of the draw is being able to work odd hours, and you'd be rather trickily bound by the malls opening and closing times.

But on a bright note it can work. The largest coworking space in Kazakhstan is located in Astana, in a mall, and the place is huge. - http://www.palata.kz/en/news/9423 - So hey, you know give it a shot, and let us know the upsides / downsides so in the future people can better judge the pros and cons of this enterprise

Jerome Chang

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Oct 24, 2014, 5:27:15 PM10/24/14
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I like that optimism.

I have also noticed that in some interior style malls in Dallas, they’re open a little early for the public to come in. Guess what happens? Everyone comes in to walk w/ their strollers, jog, etc…b/c I guess it’s too hot otherwise. Some malls have already been the anchor to the community in suburbia or other areas where there are no obvious town centers and such.

And then if you get an exterior space w/ its own entry, you won’t have to worry about the time the mall opens/closes, right?

Tim Syth

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Oct 25, 2014, 11:42:02 AM10/25/14
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Hi All,

We currently operate out of a mall.

Positives
  • Because the economy in Milwaukee has been depressed for awhile, the rates are dirt cheap. Like crazy cheap. I would bet more mall space moves in this direction.
  • Security: We have a FOB system and the door is locked 24/7. There have been occasions when the door was left open and we did have strangers drop in and grab gear, but we learned quickly.
  • 24/7 access: Because the mall needs tenants, a member just calls security after the mall is closed and gets let in assuming they are on the security whitelist. I add our members to the whitelist
  • Noise: It was a bummer until we disabled all the Muzak speakers near our space. Its pretty chill now. But "shhh!", we definitely hacked the space.
  • Diversity: our mall is at the center of the city, all bus lines pass it and all types of people use it. Because of this, we get a lot of non-standard people walking by and stopping in to ask questions. This, in my opinion, is a massive opportunity to diversify beyond the standard nomadic, tech-oriented, middle-class user base. This positive alone makes much of the negative go away.
  • Community: It can very much be a community-driven and -oriented space. We must be careful not to let our own ideals mask the creativity and resilience of humans. It works, but it will likely be a slightly different crowd that you see in the photos.
Negatives
  • Natural light: We don't have any windows directly to the outside. The center atrium allow some light in through the front glass, but our space is deep so the back is all artificial light.
  • Parking: There is lots of it, but it is relatively expensive. A daily user can spend more on parking in a month than the membership costs. That is money I would rather we were collecting than giving to the mall. Biking and public transit solve this problem.
  • Access: While we can get into the building, parking and then walking into a large building to our spot isn't as convenient (or easy to find) as having a space that is curbside or standalone. This can have an effect on event attendance because malls do have an environment that can be very different than the environment within our space.
Bottom line: The lack of natural light and expensive parking can be a lot to bear, but the diversity of users and the fact that a consumption-based location is being disrupted and improved (in my opinion) is pretty cool.

Jeannine

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Oct 29, 2014, 5:01:52 AM10/29/14
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Hi, TIm,

Are you Bucketworks?  (Um, that came out sounding a little more existential than I intended.  Wisconsin has that effect on me. :-))

I wonder if you have a blog post lying around we can put on the Coworking Blog?  Or if you copudl write one? 

I think your take on this would be really interesting, to a lot of people.

Cheers,

Jeannine

Will Bennis, Locus Workspace

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Oct 29, 2014, 2:00:55 PM10/29/14
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Thanks all. Comments on this have been extremely helpful!

Will

Tim Syth

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Oct 30, 2014, 1:37:12 PM10/30/14
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I...am....Bucketworks!

I do not have a blog post lying around, but I would be happy to write one. Shoot me a direct email and we can arrange specifics and what not there.

Thanks.

Patricia Spicuzza

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Mar 24, 2017, 1:35:29 PM3/24/17
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Hey Will, 
I was just looking for an update on this, particularly in light of the retail apocalypse happening now.  

What's the word?

Patricia 

Will Bennis, Locus Workspace

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Mar 24, 2017, 2:30:23 PM3/24/17
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I didn't end up doing it, so can't report anything useful. :)

Patricia Spicuzza

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Apr 20, 2017, 5:44:25 PM4/20/17
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Will, Can you share what type of space you went to instead?  Or did you not go into opening a space?

Will Bennis, Ph.D. | Locus Workspace

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Apr 21, 2017, 2:08:35 AM4/21/17
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We already had a coworking space. Was just considering another location and decided against it. Something in particular driving the question? Maybe I could answer better.

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Katharine Chestnut

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Apr 26, 2017, 11:54:31 AM4/26/17
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I saw a coworking space when we were in Rio earlier this year. It was small but in use. There was a Starbucks nearby and they were one a few mall merchants apparently sponsoring the space. I'm guessing it was empty retail space that they wanted to use to attract more people into the mall. It made me think about doing something like that near our space (there is a cool warehouse with lots of restaurants that our members go to for lunch) but I ended up realizing that our members went there to escape work for a while.


Katharine

whers...@wunsystems.com

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May 12, 2017, 9:25:12 AM5/12/17
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Thanks for the information. That was helpful. 

Angel Kwiatkowski

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May 15, 2017, 11:57:29 AM5/15/17
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Will, Fort Collins recently renovated our entire mall--unfortunately, the retail apocalypse has hit :( 
I take my daughter to gymnastics there every week so I have an hour to wander. They have this amazing central seating area with a firewall and great natural light. I've starting trying out pop-up coworking to see if anyone will nibble. https://www.facebook.com/events/1044785038989610/

Major shortfall I see already is that there is no coffee shop in this entire mall complex, which seems criminal. They located all the food places outside of the main mall building--also a crime. Anyway, I'll be there today coworking (possibly uni-working) by the fire :) 

Here is the conceptual design photo of the area I'm using only in real life there are only like 4 people, not 40 :/ https://scontent.fapa1-2.fna.fbcdn.net/v/t1.0-9/10298778_10152341389498991_3450163292079685836_n.jpg?oh=9148101dec70d2cb747af9232e7e19c4&oe=59B1EC2F
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