A friend is an investment banker helping restructure the ownership and financing of a group of nightclubs. She said that nightclubs own or rent valuable real estate that may be used as few as three nights per week. There is a certain amount of revenue from rental for private events, but that is also mostly in the evenings.
Some of the highest profit margins in the real estate world are at co-working spaces, which may also be characterized as “startup company incubators.” Given the tendency of people to work during the daytime and party at night, why not use the otherwise vacant nightclub real estate during the daytime as a co-working space? Put in some crazy fast WiFi, have a side room where the Aeron chairs can be stashed, and then offer people co-work space at a discount if they’ll agree to vacate by 7 pm.
Where’s the flaw in this idea?