Over the last 10 years, Denver has begun to rival major cities like Seattle, San Francisco, and Chicago. Sure, our 300 days of sunshine and a vibrant foodie, music, and art scene are influential reasons why, but the primary culprits are start-up and fortune 500 tech companies who are increasingly calling the great Rocky Mountains Front Range their home.
Here are just a handful of tech corporations that have expanded their Denver presence in 2022:
- BetterCloud: As the market leader in SaaS Operations, New York City-based BetterCloud has expanded its presence by opening an engineering office in Denver. The company plans to continue this expansion by hiring more employees in Denver over the next 2 and a half years.
- Data Dog: A publicly-traded company that provides global monitoring and security software services, has chosen Denver as the location for its western headquarters. The move is expected to create 400 jobs in the future.
- Focused Labs: Focused Labs, a Chicago-based software consulting and development company, announced its move to Venture X in Denver's Dairy Block micro-district in October 2022. The company stated that the new location will help it keep up with the increasing demand for its services in the region.
The growth of the tech industry in the Denver Metro area has also led to a significant influx of people moving to the Mile High City for their chance to work in the competitive tech sector. In fact, according to the Bureau of Labor Statistics, the number of tech jobs in Denver has increased by over 30% in just the past five years!
Now, we all know the role this influx of tech hopefuls plays on the residential housing market, but have you ever considered the impact startups and large corporations have within commercial real estate?
Are these brands breaking ground on new construction, acquiring old buildings, or asking employees to provide their own work set up?
For some, yes, of course.
But for others, they are pursuing attractive alternatives.
Many emerging brands moving to the Denver metro area are setting up shop in co-working spaces in downtown Denver and its bustling adjacent neighborhoods like Greenwood Village and its Tech Center corridor.
This demand for flex office solutions in Colorado’s front range has led to the rapid development of stunning, smartly designed modern coworking spaces to accommodate the growing number of tech workers
Flexible work space providers have allowed hundreds of established and start-up brands to tap into the city's talented workforce and vibrant tech ecosystem, while still enjoying the cost benefits of a shared office space. Better yet, they are essentially able to do so immediately as the flex space model allows for turnkey move-ins.
Let’s Talk More About Those Cost Savings
One of the main reasons tech companies flock to coworking spaces in lieu of a traditional office is due to the massive cost savings they offer.
Renting a traditional office space can be extremely expensive - it’s not uncommon for a company to spend $20,000 to $100,000 monthly on rent to accommodate their staff and plan for future growth. This can be especially difficult for small businesses and startups, requiring long term lease commitments, upfront development costs and related service costs like utilities when cash flows are tight. And preemptively securing space that will be unused or under utilized today in hopes it will be better utilized in the future can prove to be a risky financial liability. Especially now as most companies have embraced hybrid work models.
Coworking spaces, on the other hand, offer a more flexible and cost-effective solution. Flex office solutions are not only favorable with respect to costs, they also mitigate risk. Instead of committing to a long-term lease, breaking new ground or incurring other high start-up costs, businesses can secure a premium, turnkey space on flexible terms including month-to-month to multi-year options (and anything in between). This allows tech brands to scale up or down as needed, without the financial burden and unknowns associated with traditional office leases. Some companies may choose to test the market first, and see if Denver is a suitable location for their business before making significant investments in traditional commercial real estate. Market leaders like Venture X make such flexibility more readily available than ever before.
Coworking and flex office spaces also provide a sense of community and collaboration that can be difficult to create and foster when building from the ground up. Being surrounded by growth-oriented brands and individuals can be incredibly beneficial for employees when it comes to innovation, job satisfaction, and retention. The coworking community allows members to network and share ideas with others inside and outside the industry, leading to new business opportunities and partnerships. Additionally, coworking spaces often host events and workshops, which provide even more opportunities for collaboration, learning and connectedness. Venture X, for example, hosts knowledge sharing events, community happy hours, and even free lunches to support its membership!
Another benefit is the professional atmosphere these spaces provide. Many premium coworking spaces, such as Venture X, are equipped with thoughtfully designed meeting rooms, conference rooms, phone booths, and other amenities that would be too costly or not be easily accessible for businesses on their own. This allows companies to host clients and meetings in a professional setting, which can be crucial for building credibility and trust as a tech start-up. Companies like Venture X don't stop there, however. They go above and beyond and have built spaces for creatives too, like photography studios and podcasting rooms.
The ability to create a flexible and adaptable work environment is an important value add, too. With the constant evolution and rapid pace of the tech industry, companies need to be able to adapt quickly to new trends and developments. Coworking spaces offer the agility companies need to adjust to changing internal changes or market conditions.
Additionally, coworking spaces can provide a sense of legitimacy for new tech companies. Many coworking spaces are located in prestigious buildings and attractive areas for doing business, and having a presence in such a location can help to establish a company's brand and reputation. This can be especially important for tech startups, which often need to establish credibility quickly in order to attract investors and customers. Choosing the right brand and location can also help attract top talent.
In Metro Denver’s front range, coworking spaces are not just providing a place for tech companies to work, but also serving as hubs for innovation, collaboration, and networking. This helps to create a vibrant ecosystem that supports economic growth and fosters a strong start-up culture in the region.
Denver’s coworking community is excited and well positioned to welcome new and established tech companies to it’s beautiful front range. With a robust talent pool and a city bustling with opportunity, the potential of business success here in Colorful Colorado are as limitless as its Rocky Mountain heights.
Interested in seeing what we’re all about? Learn more about coworking at Venture X here.
