Up to 25 suburban companies willing to move at least 20
of their employees into the city could receive thousands of dollars in free
rent, according to a new report.
On Monday, the city announced it would reveal details of
a "new incentive program" that "aims to attract suburban
companies and other enterprises outside of Philadelphia to set up satellite
offices in the city" on Tuesday.
A Billy Penn report
says the suburban firms would cover up to $30,000 in rent for the 25 companies
at co-working spaces throughout the city. Yet, the reported requirement that
calls for at least 20 workers to be physically located in the city could prove
problematic since few, if any, co-working spaces are equipped to handle that
many people from the same business.
Alex Hillman, CEO of co-working space Indy Hall,
said he had not heard of the city’s plan until told by Billy Penn Friday but
doubted the impact it could have on co-working spaces, given most are not
equipped to handle companies of 20-plus people. Benjamin’s Desk, another
popular co-working space, offers private offices for companies of up to eight
people, according to its website. Venturef0rth advertises dedicated office
space for one to 12 people. Make Philly offers 11-person offices in its space,
but its city lead, Danika Ervin, said it could find ways to
accommodate groups of 20 or more from one company. Indy Hall caps companies at
three people.
“Not only couldn’t we [fit 20],” Hillman said, “but we’d tell them to go get their own damn office.”
That leaves WeWork, which has been making a push into Philadelphia in recent
months .
City officials told BillyPenn that the incentive program
is not aiming to boost one co-working space over others, and non-traditional
leases in other spaces are also an option.
We'll learn more about the program – which the city said
will be piloted by the Commerce Department – after a noon announcement.
Source: Philadelphia
Business Journal
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