Shared Office Space: Benefits, Challenges, and a Checklist for Picking the Right One

Rising rents are squeezing nonprofit budgets in cities all over the country. But there’s an alternative: shared office space.

Although shared space is not a new solution, more and more nonprofits are looking into the option of moving into facilities with other charities, says Kim Sarnecki, director of administration and real estate at Tides Foundation. According to a 2015 survey by the Nonprofit Centers Network, the number of shared space centers for nonprofits in the United States and Canada nearly doubled between 2011 and 2015, rising from 212 to 393.

Denver Shared Spaces, a nonprofit that supports such arrangements, defines the term “shared space” broadly. It can mean anything from a warehouse, urban farm, or art gallery to a traditional office that two or more nonprofits occupy.

Some shared-space facilities are owned by nonprofits that have staff members who help run them. Others are rented by a nonprofit that then sublets portions of the space to one or more other charities. Still others are owned by commercial landlords who rent directly to multiple nonprofit tenants.

Whatever the arrangement, shared office spaces offer an array of benefits and pose unique challenges.

Benefits

1. Cost. Some shared spaces offer nonprofits leases that cost less than market rates. The Tides Foundation Thoreau Center in San Francisco, for example, aims to charge 20 percent less than market rate, while rent at the Mile High United Way in Denver costs up to 40 percent less.

2. Better resources. Setting up shop in shared office space won’t necessarily bring down rental costs, cautions Megan Devenport, program manager for Denver Shared Spaces, but even if it doesn’t, these kinds of offices usually provide access to higher-quality resources. That’s because tenants often share the costs of telephone and Internet services, technology support, conference rooms, and printers and copiers. This sharing ultimately reduces expenses for nonprofits.

3. Collaboration. Shared spaces enable nonprofits to work together and learn from each other, Ms. Sarnecki says. When nonprofits apply for space in the Thoreau Center, Tides Foundation staff members ask what they can offer their neighbors. “People are asked to contribute time or expertise and participate in the community in some way,” she says.

Nonprofit employees often pop in to other organizations’ offices to ask questions about grant applications, strategic planning, and dealing with board members, says Saul Ettlin, collaboration and space manager for the foundation. He thinks shared office spaces help diminish competition among nonprofits and help them solve problems together.

Employees who work at different nonprofits in the Midlands Shared Spaces office in Midland, Texas, sometimes gather over lunch to discuss their various projects, says Sue Cervantez, assistant to the director at environmental nonprofit Keep Midland Beautiful.

4. Community support. Nonprofit shared office spaces often function as community gathering areas, which makes nearby residents feel more invested in their local nonprofits, Ms. Devenport says.

Challenges

1. Sharing resources. The downside to sharing resources is sharing responsibility. Nonprofits often have to formally agree on office policies and sign contracts promising to take certain steps when the shared printer or phone system stops working, Ms. Devenport says.

Ms. Cervantez says that she’s had positive experiences with resource sharing at Midlands Shared Spaces because “there’s a lot of respect around the building.” For example, before someone prints off a ton of paper, he or she typically sends out an email alerting other residents that the printer will be occupied for a while.

2. Resolving conflict. Tensions are inevitable with roommate situations, and shared office spaces are no exception. Ms. Devenport recommends that nonprofits have memoranda of understanding or build community agreements about how they’re going to resolve conflicts.

3. Conflicting missions. While shared office spaces can’t discriminate against organizations, there are some nonprofits that fit better than others with a particular community’s mission. To avoid this problem, advertise the ideals of the space openly so that nonprofits can self-select whether to sign a lease, Ms. Devenport advises. Then you’ll attract groups that align with that mission, she says.

Is a Shared Office Space Right for Your Nonprofit?

Here’s a checklist of things to keep in mind when considering a shared office space, written by Ms. Devenport and originally posted on the Denver Shared Spaces website.