Denver is facing an affordability crisis. According to Newmark Grubb Knight and Frank[i], The average market rate for office space in Denver was $21.59 per square foot for Class B space as of the close of Q3, up from $21.45 per square foot for Class B space as of the close of Q2 2016 (NGKF). The Nonprofit Space Survey[ii], published earlier this year, indicated that many community-benefitting organizations would soon be searching for new or additional space to facilitate their growth in this challenging market. Seeing immense need on the horizon, Denver Shared Spaces launched the Tenant Pipeline, a joint project with Mile High Connects, to strategically connect community-oriented businesses, social enterprises and nonprofits with affordable commercial space. Through the Tenant Pipeline, DSS is seeking to better understand the space needs of community-benefitting organizations in one-on-one interviews, completed at the organization’s location of operation. This blog post is the first in a planned series entitled Pipeline Lessons, in which DSS will share general trends.
Meeting space is highly coveted by every organization. This space is crucial for meaningful collaboration, as well as for delivering education and training services, a crucial line-item for many nonprofit organizations. However, off-site storage is very expensive as well. According to SpareFoot, the average price for a 10’ x 10’ storage space in the Denver Metro Area is $131.21 per month[iii]. Often, this extra cost, paired with the inconvenience of off-site storage is pushing organizations to attempt to make the most of on-site meeting space for storage uses. Based on facility visits, DSS learned that several organizations are using their meeting space as storage space, in whole or in part.
The following are the top five types of organizations that are experiencing greatest challenges with storage space:
- Those providing educational and training services
- Those saving items for future fundraising and events
- Those collecting supply donations for distribution to clients
- Those also running a social enterprise onsite
- Those who must keep a large number of paper case files
Does your organization fit one of these profiles? If so, what approaches are you employing to maximize space for your storage needs? DSS sees an opportunity for organizations to consider shared storage space to support similar needs between multiple organizations. To date, DSS has not provided storage options in shared spaces posted on its website, but given the demonstrated need, and a desire to help organizations to get their meeting space back, we are considering facilitating shared storage options. Are you an organization experiencing these challenges? Please let us know by sending a message to Megan Yonke, Special Projects Coordinator for Denver Shared Spaces, at email@example.com.
[i] Newmark Grubb Knight Frank (NGKF). “Denver 3Q16 Office Market.” (October 2016). http://www.ngkf.com/home/research/us-market-reports.aspx?d=4581
[ii] Denver Shared Spaces, Mile High Community Loan Fund and Nonprofit Centers Network. “Reality Check: Snapshot of Nonprofit Real Estate in Metro Denver (2015).” (June 2016) http://denversharedspaces.org/ssrelease/