Worth Sparkman
Aug 23, 2023
Early-stage companies needing fulfillment, or even space for small production lines, now have a flexible option.
Driving the news: Loloft, a 28,000-square-foot building in Rogers, officially opens tomorrow, with a ribbon-cutting at 5pm.
The business rents coworking office space, dedicated desks and microwarehousing starting at 190 square feet. Prices start around $750 per month, and cold storage is available.
Why it matters: Commercial vacancies — especially in warehouse spaces — were at a record lowat the beginning of the year.
Many shared spaces cater to office workers and don't offer space, storage and dock amenities for industrial or e-commerce clients for fulfillment.
The building is already more than 50% leased, co-founder Brendan Howell told Worth.
The big picture: E-commerce demand is up 30% from prepandemic levels, and some third-party logistics providers are using microwarehousing to get products closer to consumers.
The 'aha': The notion was born when Howell tried to find 2,000 square feet of space to make masks during the pandemic.
Eventually, he was able to sublease space from Stribling.
"We were looking for 5,000 feet for a year and basically could only get 20,000 feet for five years," he said.
Of note: RZC Investments and Steve Case's Rise of the Rest Seed Fund have backed Howell and the other co-founder, Paola Ibarra.
The company hopes to secure more investments soon.
What's next: Construction is underway on a 51,000-square-foot Loloft in Phoenix, which is planned to be open by the end of the year.
The group is working on a 90,000-square-foot location in Miami and hopes to break ground soon, Howell told Worth.
🚛 The Shift is a regular feature to catch up quick on what's happening in Arkansas' economy and entrepreneurial ecosystem.