Growing Destinations
Your go-to source for insightful discussions on destination development. The Growing Destinations podcast delves into the strategies, challenges, and successes that drive community growth. Each episode features in-depth conversations with local and national experts, uncovering universal themes and innovative practices that can be applied to any city or region.
Growing Destinations
No Lease? No Problem. How Slingshot Real Estate is Rethinking Workspaces
Andrew Robinson is the founder of Slingshot Real Estate and the visionary of The Hub on 3rd in downtown Rochester, Minnesota, a flexible office space concept being called the "Airbnb of offices." Andrew is building something new for Rochester's evolving business and entrepreneurial scene, a space that bridges the gap between co-working and traditional leases.
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Speaker 2:Downtown's are coming back and office space has, I think, bottomed out and I think we're starting to have that little V-shaped recovery. I think bottomed out and I think we're starting to have that little v-shape recovery.
Speaker 1:Welcome to the growing destinations podcast, where we take a deep dive into destination development and focus on a wide range of topics, from tourism and entertainment to economic development and entrepreneurism and much more. I'm your host, bill Von Bill Vaughn Bank. We're on location at the Hub on 3rd in downtown Rochester, minnesota. I'm joined by Andrew Robinson, founder of Slingshot Real Estate and the visionary behind this flexible office space concept being called the Airbnb of offices. Andrew is building something new for Rochester's evolving business and entrepreneurial scene a space that bridges the gap between co-working and traditional leases. Andrew Robinson, welcome to the Growing Destinations podcast.
Speaker 2:Thank you for having me.
Speaker 1:Well, let's start with your background. What inspired your journey into real estate and entrepreneurship?
Speaker 2:You know, I've always kind of had that initial innate feeling to be my own boss at a certain extent. But I think, having I had two really great mentors in La Crosse La, Crosse. Lacrosse Wisconsin, lacrosse Wisconsin, yeah, and I think those guys were really good leaders, not just in the business but in the community, and so you know I looked at that and it's you know I essentially wanted to emulate that. You know, be a good community leader and build a good business that focuses on the customer.
Speaker 1:What brought you to Rochester?
Speaker 2:So after my stint in lacrosse for a few years I was working in residential and multifamily development. After those two years I wanted to learn other aspects of real estate, and so I had the opportunity to move out to Salt Lake City and go out to a bigger city. I'm originally from Arcadia, wisconsin, so you know that's a super small city, and so I ventured out there and joined CBRE. Cbre is one of the largest real estate companies in the world.
Speaker 2:So I've got to learn all different types of real estate classes office, industrial retail, different types of real estate classes office, industrial retail. And then what brought me to Rochester is I had the opportunity to transfer, to be closer to family, and so I transferred from Salt Lake to Rochester and then managed one and two Discovery Square.
Speaker 1:Which are two big developments with the Destination Medical Center initiative.
Speaker 2:Right, yep, yep. So I had a great time working with Morton's and Destination Medical Center, mayo Clinic and the other tenants there.
Speaker 1:What's the story behind the name Slingshot Real Estate? Every name has a story, so I'm sure this one does too.
Speaker 2:The real estate model is. I mean, the fundamentals have never really changed, but I'm trying to get away from that traditional model in a way. And I thought about from the traditional model in a way and I thought about, you know, I could easily go with Robbins and Rentals and no offense against anybody that's done that kind of stuff but it's just I wanted something a little bit more bold and a little bit more energy and disruptive. And so Slingshot came about. We were actually looking at, you know, we're kind of a small fish and maybe a big pond and we're starting out. And so, you know, my brothers and I were really close and so they helped me with the name and so we were like, okay, maybe there's like a David Goliath feel here. We were thinking like David Goliath and then my brother's company is an ATM and vending company and he has Bazooka, and then I have 21 Drones as well as a media company, and so then I'm like, oh, slingshot could be a David Goliath kind of feel.
Speaker 1:Tell us about your new venture, the Hub on Third. We're actually here in your conference room.
Speaker 2:I was at a fork in the road, so to speak. I initially always wanted to start my real estate company at roughly 35. I wanted to spend 10, 12 years learning the business and then really start to kind of take it serious and go into residential and commercial. So the hub on third was a unique opportunity because I got a call from a broker that knows my skillset in office space and knows that I can help solve unique problems and distressed assets. And so this particular property was bought and the prior owner had a great vision and so he went and scraped four condominium units and then built out 12 individual offices with, you know, conference room and kitchen. And so I was approached and said is there any interest in purchasing this building and trying to solve this issue? And so this kind of ties into the hub on third, but also kind of my overall, where my fork in the road was is that I could have.
Speaker 2:My initial plan was like well, I could snowball duplexes, essentially duplex, duplex, four unit, eight units. You know, you know that's like your traditional path. But I said, well, if I have the skillset, you know why don't I just do duplex, duplex, commercial and like make a big jump? And so, you know, the broker and I worked out a deal with the seller and then I looked at this project and I said, ok, what does Rochester need, what does Rochester have? And you know how, how can we really serve the community and make it easier for businesses?
Speaker 2:So it really is very like Amazon community and make it easier for businesses. So it really is very like Amazon. Folks like make it all about the customer, right. Traditional real estate might be like let's just build the walls and then let the customer kind of figure it out, do a TI, build out and that kind of thing. This one is hey, let's go and envision what this therapist might need, envision what this group team might need, and let's do the work on the front end. Traditional has always been like let's just wait until to see if they want to sign a lease and then do the work. We're like way being super thoughtful on doing that and so far it's worked out very well for the hub.
Speaker 1:And I think I've read it's been described as the Airbnb of offices. What exactly does that mean for tenants and how does it differ from traditional co-working models and I know this isn't a co-working space because it's a little bit more short to long-term rental right?
Speaker 2:I look at the whole growth phase of all businesses and I say, ok, if you look at like a stair step and like the lower step is like the ideation right, like somebody has an idea to create some kind of product or service, right. And so I looked at, so you have like Collider. I think Collider is local downtown here. They're, you know, mayo Clinic's interested, dmc is interested with them and you know they're helping with bringing ideas to the next step. And so then after that, you know people are like okay, I'm starting to generate income.
Speaker 2:And the next step is like well, maybe I need some. Where do I? I have to create an LLC. You know, where can I put like the address from LLC? And so that's where like a virtual office comes in. And then there's another step around that. That's the co-working open desk where people are like I'm making money, you know I'm starting to. My idea is coming in. I just need an open desk to start working and maybe collaborating. And then I think the next step is really just kind of like a private office space or just a space. So the next step is kind of that you need some sort of space and it depends on whether you're a pressure washing company, or you're just needing some office space to do.
Speaker 1:So as businesses are starting to scale up, you come into play.
Speaker 2:Yeah. So that's where I'm trying to help them with the growth Right. That's where the hub kind of comes in. We're catching them trying to navigate what's next for them, right, because some people might need just one office space, some might need a waiting room and office space. So we're trying to kind of cater to that what?
Speaker 1:kind of users or businesses are showing early interest in your space.
Speaker 2:Most of the people that have looked at the space so far have some sort of wellness component, which makes a lot of sense because this building traditionally has been filled with therapists and lawyers and so, yeah, so far, you know, we're getting a lot of activity for therapists and some, you know, some component to wellness. But we do have people that you know need a remote office, and I'm saying Paul here. What I call that, basically how it's constructed, is that the outsides, the corner offices, are essentially therapists with a waiting room, and then the interior offices are more infill, like where it could be businesses like that.
Speaker 1:What are some of the top amenities and features that today's entrepreneurs or small teams expect in this kind of space?
Speaker 2:So again it goes right to the customer is what do they need? We look at, well, of course, you know mailbox, to provide a mailbox right, an office that's lockable and private, that's really critical, the infrastructure to get going. So it's turnkey. So having a desk, a chair, a monitor, keyboard, mouse, basic office supplies, you know, paper pens, all that stuff, office supplies, you know paper pens, all that stuff. And then you know we took it. This maybe is a little different than what most people would have done. So I had 12 private offices. I actually took one office and said we need more amenities. So I actually removed that office and made it a resource room which has a vending machine, beverages and snacks which you know obviously is important for people an ATM and then a full blown printer, copy scanner, right, essentially they can come to the office and get everything they need really. And then, of course, you know a kitchen, reception area and then an eight person conference room. This is where they can have, you know, client facing meetings or group team meetings, all that.
Speaker 1:Why was downtown Rochester the right place to launch the hub on third? Why?
Speaker 2:was downtown Rochester the right place to launch the hub on 3rd. Downtown Rochester has so much going for it that I looked at this distress test and said, okay, I think we can solve a need in the marketplace. And traditionally, people have you know, I go to these real estate summits and people like all talk about west side of Rochester, West Circle Drive, and I actually think that it's cyclical. Downtowns are coming back and office space has, I think, bottomed out and I think we're starting to have that little V-shaped recovery. Now it depends on the market, of course, but if you just look at it is that you know Governor Walz had basically said in June that they want state employees to start coming back, and so I think that was just kind of a way to help the other large companies also send the same message. And now you're starting to see these large companies like Target, and they're starting to say, hey, our employees need to come back September 1st. So I look at that and say, OK, so People are starting to come back to the office. That means that there's going to be more demand for it.
Speaker 2:And why downtown Rochester? Because this is where it's happening. It's happening in this district. There's literally hundreds of millions of dollars being spent here, and we're really just at this we're in the second half of that spending, and so I think it's a perfect place for businesses to collaborate with Mayo Clinic, as well as the other companies spinning off of it like Nucleus Radio Pharma. There's just so much innovation. I think that's starting, but also it's going to increase a lot in the next few years.
Speaker 1:In your view, how is Rochester evolving as a destination for innovation, entrepreneurship and flexible work?
Speaker 2:I think what I'm trying to do is be part of the ecosystem and I think that's what even my time spent at 1 and 2 Discovery Square is, that one of our focuses has been was what do people need that they're coming in from Boston, san Diego and creating that ecosystem, and so I think if we can look at like a rising tide rises all ships, that kind of feel, if you look at Collider and one or two Discovery Square, even Regis, you look at these different flexible models and then you look at the hub on third, each of them is solving a different problem in the marketplace and I think that we need to get away from like trying to take all the business yourself. That kind of view is. Maybe somebody calls me and says, hey, I need this space, and then I can say, look, no, you should go to Collider based on what you told me, or you should go to one or two. I think that's where we need to start getting to. I'm not sure we're there yet.
Speaker 1:What would you say to someone who's hesitant about moving into a non-traditional office space like this?
Speaker 2:I'd say that my job is to make it so you're not hesitant, and that's why I'm trying to make it as flexible as possible. So it just depends on where you're at. So maybe it's hey, why don't you test out for 12 months? We'll put a 60-day clause in there that says, hey, things aren't working out, you give me notice and you can leave. It's meant to be very, very flexible and very thoughtful, is my viewpoint.
Speaker 1:Do you see this as a test and do you envision replicating it somewhere else?
Speaker 2:I think that I have enough data to say that this model is going to work and that scaling this is very certain to me. So I do see that there will be some expansion and it will be more than likely in downtown.
Speaker 1:What role do you think local entrepreneurs and small businesses play in shaping Rochester's downtown identity and energy?
Speaker 2:The entrepreneurs are going to have disruptive ideas, and I think that more and more young people are going to have to be part of the entrepreneurial economy. And that's not out of choice, it's out of necessity, because the working for a job for 40 years might not be working anymore, so now it's work a job, try to find another business that you're good at. And I do think that the younger professionals are starting to kind of wake up and saying hey, we need to do something.
Speaker 2:We need to maybe disrupt things a little bit, change things, because I think we can all speak to at least the young professionals. It's been extremely challenging, especially with cost of living. So I do think that we all speak to at least the young professionals. It's been extremely challenging, especially with cost of living. So I do think that we're going to start seeing more and more young people starting business and start to shape what the energy looks like downtown. And I think when it comes to downtown, one of my mentors always said is you don't create the market, you response to the market, and so I think that's important pieces like what do we need downtown, and not trying to force something downtown.
Speaker 1:What's something you're really excited about right now, either professionally or personally, that you want to share?
Speaker 2:You know, I think I'm probably most excited about how this jump for me, going to launch my own company is. That's probably the most exciting. And I'll be honest, I think I'm way more stress free. I did manage very complicated assets in Salt Lake and here Salt Lake and here and but it's kind of a crazy epiphany.
Speaker 2:That's like you'd think that starting your own business would be more stressful, and it certainly is Right, because everything's on you and you know you have to make those payments. You don't have that steady income. You know you have to figure out your insurance. You have to, you have to figure out everything Coffee maker, just anything and everything is figured out. But honestly, I think, yeah, I feel I just feel better, and so I think I guess my message is that you have to be thoughtful on when you do it and make sure you're prepared for it. But I think and I've talked to other businesses owners is, once you kind of make the jump, I think things grow at a much faster rate too because you're so focused on your business, like you're hyper-focused on it.
Speaker 1:I do want to mention that you are definitely an entrepreneur because you have other business ventures, and one that introduced me to you was your drone media business. Tell us a little bit about that.
Speaker 2:The drone business. It's always been a hobby of mine. I started in 2017 doing videos for real estate and stuff. But you know, last year you know I was working full time and I was like, ok, I wanted to just start a business. And so I was like I'll do the drone business because I enjoy doing it. And so then I worked with vineyards and municipalities and anything and everything that needed some kind of fun videos. Like, I think anybody can buy a drone and do pictures right, you just click a button, go to Best Buy, buy that kind of thing. But what I really enjoy and I still do it today is create captivating videos using first-person view drones or aerial drones. It's really trying to tell a story in a different way. So that's how that business really started.
Speaker 1:Well, you've done a great job with the drone business. Thank you for hosting us today here at the Hub on 3rd Best wishes to you. Thank you for being our guest on the Growing Destinations podcast.
Speaker 2:Thank you.
Speaker 1:Thank you for tuning in to the Growing Destinations podcast and don't forget to subscribe. This podcast is brought to you by Experience Rochester. Find out more about Rochester, Minnesota, and its growing arts and culture scene, its international culinary flavors and award-winning craft beer by visiting experiencerochestermncom.
