San Francisco neighborhoods hosting smaller shared spaces for remote work

Smaller shared spaces for remote work providing more options for San Francisco residents

SAN FRANCISCO -- Smaller coworking spaces are popping up in neighborhoods across San Francisco, giving workers a chance to avoid commutes while providing environments outside their homes for a productive work day.

For businesses, there's an opportunity to re-capture COVID-related lost revenue tied to an exodus from the city. 

Even yoga studios are finding ways to bring in more clients by providing work spaces nearby. At the crack of dawn, it's go-time for instructor Kalen Bigger. In a packed room heated to 95 degrees, she leads a group of students through a work out before their work day starts.

It's a high intensity blend of yoga and pilates with an upbeat playlist.  

"People sweat like crazy in here. You walk out of here and I'm soaking in sweat. We're all just sweating and working together," said Bigger. 

Bigger has a full-time job in marketing, but kicks off her day as a part-time trainer. Karma Yoga owner Carrie Bracken also teaches classes, but has redesigned the two-story space to provide coworking areas for her employees, members and anyone who wants to drop-in.

"Being that it's a yoga studio we could create this serene experience for those that are used to a coffee shop or a louder place.  We wanted something that was relaxing," said Bracken.  

Just down the block, a new co-working space called Neon has popped up on Union Street. Mike Case is in charge of operations.  There's no contract or membership required, unlike global workspace provider WeWork.  

"Whatever it may be, you just can drop in. You can come in to do work here. We have everything ready for you," said Case.  

San Francisco's office vacancy rate is still the highest among major cities in the country at around 30%. 

Places like Karma Yoga and Neon are maximizing their real estate, even turning backyards into "secret garden" work spaces available to rent. 

"Everyone is attacking the commercial real estate market because it's an impending disaster and everyone's trying to solve it so you get bunch of creative solutions and we just really love what we have going," said Case. 

Studies and research from Stanford show work from home has stabilized at about five times its pre-pandemic value. Work from home is highest in tech firms and in large cities.

"After talking to more people, we knew it could be a great opportunity in San Francisco to give it to our members and anyone else on Union Street," said Bracken.  

Working moms like Vanessa Vanmatre have seen more low-commitment coworking spaces being converted from once empty storefronts, all within walking distance. It provides a much more appealing destination than offices on the Peninsula or in the South Bay.

"I would prefer to be closer to home at times. That gives me more flexibility to get out of this space," said Vanmatre. 

For people like Kalen Bigger, she still goes to the office, but also has an extra space to be productive in a different setting, when she needs it. 

"It's a community. It's magic. You step into the whole Karma world of its own. Nothing outside matters," said Bigger.  

It's a changing cityscape in an ever-changing work world. According to Stanford Economics Professor Nick Bloom and his research team, WFH shot up to more than 60%.

Over the ensuing year, it declined to 35% and has now stabilized at just over 25%.

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