Artifacts Ep 28

๐Ÿ”บ Third ๐Ÿ”บ Spaces ๐Ÿ”บ & Switchyards

โ†“

via cosmos

This week we dive into the continued rise and evolution of third spaces and the impact of the built environment on our productivity, health, and prosperity.

Newsletter #28. What do you think of the new name? Let me know your thoughts!

Artifacts is a weekly newsletter exploring the curiosities and intersections of modern business building, identity making, and creative detours.

Why does Switchyards work so well?

For those unfamiliar, Switchyards is a โ€œneighborhood work club.โ€

They have 11 locations across the major neighborhoods in Atlanta. They arenโ€™t a coffee shop as you need a membership and a code to enter; they arenโ€™t quite a co-working space because you canโ€™t rent hot desks or offices โ€“ theyโ€™re the more interesting middle.

In the last few weeks since Iโ€™ve been back in Atlanta, Iโ€™ve been able to visit three different Switchyards locations. They all have their own unique flare but a shared essence.

Iโ€™ve found it to be calming, productive, inspiring, and just nice to work from Switchyards.

Switchyards Westside

But being the researcher I am, I wondered why Switchyards works so well in Atlanta but doesnโ€™t seem to exist in other major cities.

My first hypothesis is that the business arbitrage/opportunity comes from commercial rental prices.

The average office rental rate in Los Angeles is $51.71 per square foot. In New York, itโ€™s $56.67 per square foot.

In Atlanta, itโ€™s $19.10 per square foot.

Office space in Atlanta is, on average, 3x cheaper than in some of the other coastal urban centers. This is how they can charge $100/month for access to every club and continue to expand.

Switchyards Westside

My second hypothesis is the business model itself.

โ€œNeighborhood Work Clubโ€ is by design. The fact that members canโ€™t rent hot desks or private offices actually encourages a different behavior. Members arenโ€™t really meant to come in and work at Switchyards โ€œfull-time.โ€ They have a fluidity built into the business that enables less occupancy but doesnโ€™t necessarily affect the bottom line of their revenue.

From a business perspective, Switchyards found the perfect arbitrage. They can leverage the cheaper commercial rent + a unique coworking business model.

This doesnโ€™t work in New York or Los Angeles because these types of businesses have to optimize for occupancy to cover their biggest expense: rent. Almost everything else (including the user experience) is secondary (and you can tell.)

As you can tell, I love Switchyards, but I see another evolution coming just around the corner.

Iโ€™m going to call it Lift/Work Spaces.

My first experience of a โ€œLift/Work Spaceโ€ was at Chelsea Piers in downtown Brooklyn. My dear friend Alex gave me a guest pass where I was able to work out of a small co-working space, get a workout in, and eat a sandwich from the cafe inside.

Chelsea Piers, Brooklyn

The rise of these types of gyms + coworking spaces makes total sense.

The underlying cultural tension is twofold.

  1. Remote work

  2. Redefinition of productivity

It goes without saying that the impact of remote work is enormous. People realized that they have other options for a lifestyle that donโ€™t revolve around a typical 9-5. They had more time. More time led to more opportunities.

A huge part of that is their personal health and fitness.

Related is the redefinition of productivity.

Although this data is mostly from casual conversations, Iโ€™ve been seeing people make the connection between their personal health and well-being and their overall productivity.

Itโ€™s no longer an either/or scenario. People arenโ€™t choosing between being productive at work or productive in their personal life. Thereโ€™s integration happening.

Iโ€™m really interested in how space-making will continue to evolve, especially as work and fitness and health and family and community continue to integrate. Are we going to end up going back to giant indoor malls? Are we going to upgrade our neighborhood strip malls? Or will something more interesting be built?

Weโ€™ll see.

Routine Trials: Analog Meeting Reminder

Routine Trials is my ongoing experiment where I try new products, services, and habits that hopefully make my life better. Iโ€™m basically your habit-formation lab rat, and happily so ๐Ÿ˜‰

One thing Iโ€™ve struggled with for the longest time has been my work calendar.

I donโ€™t have the greatest memory, so I actually donโ€™t remember what meetings I have, with whom, and when.

If you see me during the day, youโ€™ll observe me manically toggling between various tabs and Google Calendar. Itโ€™s really annoying.

I started to just write out my meetings and the times every day on a piece of paper and cross them out as theyโ€™re done.

This stupidly simple change has made a huge difference lol.

Links that moved me

  1. This image I found on Cosmos

  2. This tweet my coach Minnow sent me

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