Co.Space targets expansion as demand for small, affordable spaces increases

Co.Space, an entrepreneur village network which offers space for small businesses in Gauteng, is seeking to grow its national footprint as demand rises for secure and smaller spaces from businesses looking for a professional address.

The business, founded in 2016, opened its first property in Midrand to serve the needs of small businesses looking for affordable space with flexible lease terms to suit their needs.

It now offers 750 units across Midrand, Randburg and Pretoria East serving a wide range of tenants such as caterers, dentists, law firms, fashion studios, watchmakers, gin distillers and vehicle repairs.

“The growth in the entrepreneurial and freelance economy inspired the establishment of these secure business parks — and we are looking to grow nationally due to demand,” founder and CEO Bobby Forssman told Business Day.

Forssman said the 25,000m² Midrand property offers 310 units and is a place of work for more than 1,000 people.

“Small businesses in our portfolio employ 2.5 people — and we have seen tremendous growth from some companies who started really small and have since taken additional space within our portfolio.”

Unlike traditional commercial property which requires lengthy leases at high prices, tenants can choose from units measuring 18m² — the size of a single lock-up garage — to 36m². Units are fibre-ready, have prepaid utilities, free parking and business hub membership, with a cafe and pause areas across the parks.

Rentals range from R5,500 to R9,000 a month depending on the unit size. For example, a catering kitchen unit with threephase power and an extractor would cost more than a standard single garage unit.

Leases are month to month and 30 days’ notice is required when leaving. The business hub offers meeting rooms and hotdesking, dispatch and delivery services, Wi-Fi, printing and reception services.

Tenants are allocated space according to the nature of their businesses. For example, office users would have their own zone, as they require quiet periods, while vehicle repairs are often at the back of the property.

Though there is a high level of churn due to the flexibility of leases, the tenure at Midrand is about 20 months.

“Our spaces enable entrepreneurs and start-up businesses to grow and collaborate through networking and various business-training programmes,” Forssman said.

Forssman, who has been in property development for years, recognised the need to create adaptable spaces.

The industrial-feel designed units have high-volume ceilings enabling tenants to create a mezzanine space for a workshop and leave the downstairs area as an office if needed.

Many businesses have designed their internal units in a similar fashion to create a sense of space. One such business is MKBOLT, a transport logistics business which started in 2013 in Midrand. The business has since grown and added a fashion line — Cocokrush — in 2022, and both businesses operate in the same space. Store manager Fungai Mhou said the space suits both businesses with secure and free parking away from the CBD noise.

“We are very productive in this space — and Co.Space does most of the advertising and marketing through networking events,” Mhou said.

Another success story is UDARKIE — an apparel brand established in 2018 by Mongezi Masombuka from Thembisa.

In late 2022, the brand opened its first concept retail store in Midrand.

Store manager Gomotsegang Mojapelo said the brand inspiration came from the popular “umlungu” T-shirt. Masombuka wanted an authentic design that embodied the vibrancy, authenticity and spirit of Africa.

Mojapelo said the township streetwear brand aims to attract the middle-class customer and appeal to the luxury market. “Our vision is to create a space for Africans to express themselves through fashion, celebrating their unique identities and fostering a deep sense of belonging.”

Forssmann said UDARKIE rents out a double garage and spent a significant amount transforming the industrial space into a luxury store.

He said all their villages are located close to a township to enable township entrepreneurs easy access to affordable workspaces. The Midrand property is close to Thembisa, Pretoria East is near Mamelodi, and the Randburg—Kya Sands property is close to Cosmo City.

The Midrand village, with 310 units, is 87% occupied and Pretoria East, with 287 units, is at 71%. Demand is quite high in Randburg — with 160 units. The company will add 150 units in the first quarter of 2024.