'50% chance that we'll reopen': North Bay coworking facilities wonder whether tenants will return after the lockdown

When Danielle Stroble launched Keller Street CoWork two years ago, she joined the ranks of small-business owners bringing their entrepreneurial dreams to life. Now, like so many of her peers, Stroble's company is on lockdown.

What comes next is anyone's guess. If Stroble can reopen her downtown Petaluma-based coworking business by the latter part of May, she can start rebuilding, she said. But if Gov. Gavin Newsom gives the go-ahead for June 1 or later, it might become a different story.

'If we don't open by June 1, there's a 50% chance that we'll reopen,' Stroble said. 'It just depends on how far this extends. We can probably go to July 1, but that's pushing it.'

Chicago-based JLL, a public brokerage firm with locations in 80 countries, states the coworking industry, offering work space for rent, has grown at an annual rate of 22% since 2010.

'While coworking and flexible space have historically catered to freelancers, startups and smaller businesses, large corporate occupiers now account for more than 40% of coworking industry revenue,' JLL said in a February 2020 report. 'We predict corporate demand will continue to grow significantly in the years ahead.'

Keller Street CoWork, along with CoLab in Sonoma County and Mind Tank in Marin County, are among the coworking entrepreneurial enterprises in the North Bay area. On the other end of the spectrum are big operators like New York-headquartered WeWork and Spaces, a division of International Workplace Group. Combined, the two organizations have thousands of locations around the globe.

WeWork has closed some of its locations during the pandemic, but its North Bay site in Mill Valley remains open, according to Ingrid Thorlaksson, senior manager of public affairs. Spaces previously announced plans to open a location this year in Napa Valley, in an 18,000-square-foot space at First Street Napa. Those plans remain on track, with a scheduled opening date of Sept. 7, according to a company spokeswoman.

Coworking businesses typically operate on a membership model, with pricing options determined by how much space, time and equipment is needed.

Monthly memberships at the 9,000-square-foot Keller Street CoWork range from $300 to $1,200, with 24/7 access, Stroble said. Because members pay a month in advance and were only able to use the coworking space for half of March, she didn't charge anyone for April.

Stroble said she lost five of her 60 members after shelter-in-place went into effect. She also had to lay off her two part-time employees, and said she hopes they'll come back when the lockdown is over.

Keller Street CoWork has members working for essential businesses, and could technically stay open anyway because it offers a parcel service — also defined as essential during the lockdown.

But Stroble decided it was safest to temporarily shutter Keller Street CoWork. Once a week she heads to her business to meet the members who keep post-office boxes so she can give them their mail.

'I want to be very respectful of the health situation, first and foremost, and the comfort level of the members,' she said. 'And then I think, depending on when we go back into full force, people are going to start feeling more and more comfortable.'

Presuming Keller Street CoWork will be back in business after the shelter-in-place is lifted, Stroble has already reconfigured the seating arrangement at the long community table, removing enough chairs to ensure at least 6-feet of social distancing.

Before the novel coronavirus outbreak, Santa Rosa-based CoLab had between 45 and 60 members using its 14,000-square-foot space, according to Jessie Villa, community manager. CoLab also accepts walk-in clients, but after the shelter-in-place order, the company closed to all but about 10 members who work for essential businesses, including a CPR trainer for health care workers and an accountant for small businesses, she said.

'We're really just trying to stay available for them,' Villa said. 'And while we don't have very many people coming in anymore, we are focusing a lot more on our virtual community by offering events and gatherings through Zoom, and through our Slack channels to stay in contact and offer different resources for our members.'

CoLab offers a one-day pass for $30 or a choice of two monthly memberships: $175 for 10 days a month, or $275 for unlimited access. Villa said members were offered a 30% discount through April because of the current business climate.

Villa stated she couldn't share financial information about CoLab. Exact details about the coworking company's future is unclear.

'We do hope that we can fully open to accommodate our members who are ready to come back to their workspace and for those who may be working remotely for the foreseeable future, but don't necessarily want to be at home,' she said. 'We are still working through the logistics of how we will open coLAB once the lockdown is lifted. We know physical distancing and heightened cleaning protocols will remain important to our community for months to come, so we are doing our best to plan for these things.'

Sally Newson, a serial entrepreneur based in the town of Ross, runs several businesses, including two coworking operations within Marin County. She opened Mind Tank Work Club about four years ago and last year introduced Mind Tank HQ, which offers private offices. The spaces are in downtown Ross and Larkspur.

Newson has been putting the finishing touches on an additional location, an 8,000-square-foot space in the Brick Kiln building in Larkspur Landing, across from the ferry. But when the governor issued the shelter-in-place mandate, she had to do some rearranging.

'With what's happened with coronavirus most of (the members) temporarily left, but they're saying they'll be back when the time is right,' Newson said. 'When it's safe for people to start working in offices again, I'll be consolidating some of the Mind Tank HQs (into) the Brick Kiln building.'

Mind Tank has about 21 members, and monthly memberships range from $95 to $575. Newson said she is reevaluating monthly pricing for the forthcoming Mind Tank HQ in the Brick Kiln building.

In the meantime, Newson said she is optimistic and grateful.

'I feel very fortunate that I'm in a financial position that makes me highly resilient,' she said.

Staff Writer Cheryl Sarfaty covers tourism, hospitality, health care and education. Reach her at cheryl.sarfaty@busjrnl.com or 707-521-4259.