Digital 52 4️⃣6️⃣ - On growing locally, supporting SMEs through coworking and improving their experience by switching their tech stack: The story of Panama.

Today’s story will take you to New Zealand, more precisely to Hamilton. What’s there? A family-owned coworking brand that has been fostering a profound local influence through its vibrant community: Panama.

You can read the full story of Panama on page 144 of “Around The World in 250 Coworking Spaces”.

Over the course of 45 editions of Digital 52s, you've encountered diverse motivations driving individuals and companies to establish coworking brands. Today's narrative adds another layer to this mosaic. While coworking often emerges as a solution to immediate challenges for some, for others, like Panama—a coworking brand rooted in Hamilton, New Zealand—it presents a new avenue within their existing business landscape. Panama is the brainchild of Stark Property, experts in commercial and residential real estate. What insights did Stark Property glean from the coworking concept? How does this venture enhance their current portfolio? Beyond their assets, how does the presence of a coworking brand contribute to the local community's entrepreneurial growth? These are the questions we'll delve into in this feature.

➡️ A little refresher

Who’s behind the featured space?

Meet Matt and Jaimee Stark. 

A builder and graphic designer. After being tasked with fitting out an office space for Matt's father's company, the couple saw a massive gap in the market for well-designed, flexible workspaces in the CBD. This drove them to start Panama. 

➡️ Key Figures

• Opening year: 2017
• Size when they started: 1 location
• Size today: 3 locations, namely: Panama House, Panama Cottage and Panama Square.

➡️ A little tour around Panama

➡️ Behind-the-scenes

Things you didn't read in aw250cs.

➡️ Panama Today

Where are things at with Panama today? Well, it seems that the keyword that drove our conversation with Roxana Davies, Communications and Culture Lead at Stark Property is growth. Not just growth in size (although that happened and will continue to happen) but also growth in their understanding of who they are, how they serve their community, and what can be improved for them to have an even bigger impact on their members’ daily lives. 

💫 Growing in size and in understanding.  

💬 I’d like to start by asking you: what’s new at Panama since September 2021? 

Yes. I was reflecting on our past situation. At that time, we already had Panama Square established, and since then, we've acquired the adjacent two buildings, effectively merging them into a larger complex. Although it remains one location known as Panama, it has now tripled in size. 

As of now, approximately 250 individuals are working from this consolidated location, which is quite thrilling. Initially, we had Panama House as our original workspace, but it coincided with the onset of the Covid pandemic. Everyone from Panama House relocated to Panama Square because Panama House has now been leased to a single tenant. 

New Zealand underwent an extended lockdown of six weeks, during which people were confined to their homes. This lockdown duration was notably longer compared to many other countries. We managed to retain all our tenants without any departures, which is a very positive outcome. 

Following the pandemic, many of our larger corporate tenants associated with property operations have displayed a keen interest in adopting a more flexible arrangement, including downsizing from their substantial corporate offices.

As a response, we've recently constructed another building just across the river in Hamilton East, a mere five-minute drive from the CBD. Currently, this space is temporarily occupied due to issues with the previous tenant's building. However, they are scheduled to vacate around August or September, after which it will transform into a coworking space. One of our larger tenants, employing approximately 100 staff, has already moved in. They occupy an entire floor and also utilize the available meeting rooms and cafe areas. They're genuinely enthusiastic about being a part of this coworking setup.

Looking ahead, by the end of this year, we anticipate having another addition to our Panama coworking spaces, situated in this new location. This development is truly exciting.

💬 You guys operate out of Hamilton, how would you describe the local understanding of coworking there? 

The concept has gradually become more mainstream, with people gaining a better understanding of coworking. Back when we commenced this journey five years ago, explaining and introducing people to the concept of coworking was a necessity. Hamilton is home to a plethora of small to medium-sized businesses, making it an ideal hub for coworking. Many of these businesses find themselves in that critical phase where they've outgrown the confines of a home office but aren't quite ready for a full-blown corporate setup.

Hence, more individuals are embracing the idea of coworking. Interestingly, even commercial real estate agents in Hamilton have taken a keen interest in this trend. When individuals approach them in search of a workspace, these agents frequently steer them in our direction, which is truly great.

What sets Panama apart is our ownership by Stark Property, a commercial property development company. This connection ensures a seamless progression for our coworking tenants. Those who start with just a desk can seamlessly transition to multiple desks, graduate to office space, and eventually, if needed, move into a separate commercial property beyond the Panama ecosystem. 

💬 How did you educate the local crowd on what you wanted to build with Panama?

It's a common occurrence for individuals to approach Stark Property stating their need for a 200-square-meter space. Upon delving deeper into their requirements and understanding their business, we often discover that their actual spatial needs are much more modest, making them an ideal fit for Panama. This unique situation allows us to guide them in a somewhat reverse manner. 

Initially seeking corporate-sized spaces, they eventually realize that such extensive room is unnecessary. This reverse process often proves insightful.

Lately, we've initiated networking events leveraging our impressive event space. These events serve as a prime opportunity to engage with the business community. We present an informative session about coworking, and provide guided tours of our facility showcasing various options, from individual desks to private offices. Witnessing our offerings in person tends to clarify what might be difficult to convey via our website or over the phone. We make a concerted effort to welcome them into our workspace. Our 'Panama Assembly,' occurring quarterly, serves this purpose. Attended by a diverse crowd, we invite keynote speakers to draw a varied audience, introducing them to our space. This paves the way for exploring options such as booking meeting rooms or reserving desks. Offering free trial periods for desks is a common approach, enabling them to immerse themselves in the environment for a day.

Through experience, we've found that once individuals step through our doors, explaining the essence of coworking and demonstrating its benefits becomes far more effective than merely describing it.

💬 As you run 3 locations and soon 4, how do you connect the spaces and members between each other? 

Yes, it's a bit of a nuanced situation. Essentially, we've established a robust structure with our community and events coordinator, who is hands-on day-to-day at Panama Square. She's essentially the point of contact for our community and maintains a service-oriented approach. Together with our Panama custodian, these two individuals make regular visits to all our locations throughout the week. Each Monday, they head down to the college, connecting with our residents, checking in on their well-being, and engaging in casual conversations. The same approach is taken at Panama River Banks.

Even though their presence is primarily concentrated at Panama Square, a monthly morning tea serves as a gathering to which everyone is invited. We've arranged a van that travels around the CBD. Those interested can hop on for the morning tea, which is conveniently accessible within walking distance. While they can certainly walk, we occasionally hold these gatherings in various locations to encourage attendance at different venues.

Moreover, we offer Pilates sessions every Monday during lunchtime. This inclusive activity is open to all, regardless of their location within our spaces. Our meeting spaces can be conveniently reserved through our app. If, for instance, a meeting room is booked at Panama Riverbanks, and none are available there, occupants have the option to stroll over to Panama Square and utilize one of our available rooms.

In essence, all occupants across the three locations have seamless access to all the amenities we provide.

💬 Operationally speaking, is the experience you offer to members similar across all spaces? Or does it differ depending on the location? 

The setup is quite similar overall. However, there are a few subtle distinctions. At Panama Square, for instance, we've established a unique feature—a service reception coupled with a ground-floor cafe. This particular location is more visibly public-facing, attracting a diverse crowd. Visitors frequent the cafe and often venture into the reception area with inquiries about our offerings and operations. On the other hand, our other coworking spaces don't naturally receive casual visitors due to the absence of a reception or a welcoming lobby area. Without prior knowledge of their presence, one wouldn't spontaneously drop in.

Moreover, it's worth noting that our other locations lack a dedicated receptionist, which sets them apart in this aspect. However, apart from this difference, the overall setup remains quite consistent. Our resident events, networking gatherings, and various other events are primarily hosted at Panama Square due to the availability of event spaces. Nonetheless, these events are open to everyone across all our locations, creating a seamless crossover between the spaces.

💬 You said earlier that, you guys have an app? Is it something you developed internally or do you use an already existing coworking software?

Interesting that you ask. Over the past five years, we've dedicated a significant amount of time and effort to develop our proprietary app. While the journey had its share of challenges, we've recently reached a pivotal decision to part ways with our app and transition to using Officernd instead. 

Our experience with our own app reached a point where the costs involved in development were becoming substantial. We realized that much of what we were creating had already been available in the market for the past five years.

Although we embarked on creating our app with a vision, the process proved to be both costly and complex, essentially turning into a burdensome project. At a certain juncture, it became evident that adopting an existing solution would be more pragmatic. Currently, we're in the process of onboarding with officernd. Interestingly, it encompasses everything we had envisioned for our own app. This shift brings about a sense of anticipation and relief. One aspect that we may have underestimated while initiating our app development was the ongoing maintenance and upkeep it demanded. This translated into a significant financial commitment, which we are now excited to sidestep by embracing officernd. This transition is likely to resolve many of the minor issues we encountered with our in-house app, given that officernd is built on a foundation of established software.

💬 All your workspaces are beautifully designed, can you talk to me about the function interior design gives to your workspaces? 

The inception of Panama is quite an interesting story. It all began with Matt and Jamie Stark, the founders of Panama. Their journey started when Matt, a builder, and Jamie, a designer, collaborated on an office fit-out project for Matt's father. During this process, they discovered a gap in the market – a lack of aesthetically pleasing office spaces in the CBD. Recognizing this opportunity, they embarked on creating an inviting office environment, which garnered immediate attention and inquiries. This unexpected response propelled the initial spark of Panama's creation.

Furthermore, Jamie's sister and brother-in-law ventured into the field of spatial design, a parallel endeavor that closely aligns with Panama's vision. While Jamie primarily oversees Panama's operations, their connection with the spatial design business remains significant. With Jamie's background in spatial design, the value that this expertise brings to Panama is undeniable. Visitors and occupants alike are quick to recognize the appeal of the space – its warmth, its allure, and the sense of pride in hosting clients and guests within its confines. 

We firmly believe that given the substantial amount of time spent at work, the workplace should exude an inviting atmosphere.

Our commitment to this ethos is evident in the thoughtful touches we've incorporated, such as the abundance of greenery, ample natural light streaming in through the windows, and various cozy breakout areas. These spaces offer a welcome respite from the confines of a desk and serve as havens for rejuvenation and creativity. At Panama, we've strived to create an environment where individuals find themselves not only productive but also inspired, making every moment spent at work a rewarding experience.

➡️ Reflections on building Panama

💬 If you could do one thing differently in the journey of Panama what would it be?

That's a complex question. It's challenging to pinpoint a specific moment or experience because each step along the way, no matter how small, offers valuable insights. At our current stage, with a substantial team and numerous responsibilities, we occasionally reflect on the past and consider how implementing more efficient systems from the outset could have streamlined our processes. In the early days, we operated quite manually, particularly in administrative tasks.

Looking back, embracing software solutions early on would have undoubtedly alleviated many challenges.

As we've expanded to accommodate around 250 residents, the intricacies of extracting information from disparate sources such as Google spreadsheets and scattered Word documents have become apparent. The complexities of reconfiguring our booking system, especially when compared to what coworking software provides, highlight the importance of adopting efficient tools from the start. However, this perspective comes with the wisdom gained from experience, something we might not have fully comprehended back then.

Interestingly, if someone had shared this foresight with us during our initial stages, we might have been hesitant to fully embrace it. It's quite possible that we would have believed in our ability to handle things more economically and effectively on our own. Nonetheless, as we stand at our current scale, we recognize the value in such solutions, fostering smoother operations and enhanced management practice.

💬 What has been your biggest learning so far working for a brand like Panama?

This journey has also provided a valuable lesson – the realization that businesses spanning various industries and encompassing diverse skill sets can harmoniously coexist within the same environment. Initially, there was a sense of apprehension shared among us. I, too, had reservations. Visualizing a corporate lawyer sharing office space with a laid-back freelance designer seemed like a potential mismatch. The concern lingered that this eclectic mix might not blend seamlessly or could lead to discomfort. An illustrative instance is the presence of a tattoo studio on our top floor. This situation naturally triggers assumptions about the individuals frequenting the space, potentially influencing client perceptions and interactions within the building's confines.

However, the outcomes have been remarkably positive. It's been truly fascinating to witness the convergence of diverse professionals, each contributing their unique perspectives. The once-perceived disparities between a corporate lawyer and a tattoo artist, or a graphic designer and a surveyor, have given way to unexpected collaborations. This realization has profoundly surprised me – the capacity of individuals with varying skill sets to not only coexist but also to engage in meaningful exchanges that enrich their work. The relationships that blossom between these seemingly disparate professions are a testament to the power of coworking spaces, defying preconceptions and fostering an environment where creativity and innovation thrive.

💬 What would be your best advice to someone thinking about opening a coworking space?

I believe that offering something you genuinely believe in, coupled with meticulous attention to the finer nuances and true care for people, has been our driving force. Our approach is rooted in authenticity. If the sole goal is profit, and filling spaces and desks becomes the primary concern, the foundation tends to crumble. Our success isn't merely hinged on being the most affordable option in the city. Rather, we've earned our place as one of the largest, and the longevity of our residents' tenure underlines their appreciation for our focus on the minutiae.

The small gestures, the personal touch, and the way we genuinely engage with every individual set us apart. 

Knowing each resident by name, extending Christmas gifts during the festive season, and inquiring about their work journey – these seemingly small actions collectively define our approach. These subtleties create a unique experience for our members. For instance, we've invested in a lobby couch that might have been deemed extravagant by some standards. Yet, it exudes warmth and hospitality, evoking excitement among those who enter our space.

💬 If you could chat with coworking operators now, what would you like to ask them? 

💬 And if you could chat with members of coworking spaces? 

What are the key factors that entice them to sign up and consistently return to a coworking space? 

While we might assume offerings like coffee would be an appealing incentive, the reality could differ. It's important to avoid presumptions and instead engage in meaningful dialogue to uncover what truly captivates them. By asking questions and seeking insights, we can pinpoint the services or aspects that inspire them to choose us repeatedly.

Understanding the elements that foster their loyalty is crucial. This could involve aspects that streamline their experience and make their daily routine more convenient. Be it lightning-fast internet, convenient parking, or other such amenities, identifying these elements that contribute to their ease and satisfaction is pivotal.

💬 Last but not least, where would you want to bring Panama next?

We often encounter that question, and it ties into our considerations about scaling up. The challenge lies in maintaining the essence of the Panama brand while expanding to new locations. Preserving the values and elements that are dear to us is essential as we contemplate venturing into new territories. Hamilton, though not among the most widely known cities in New Zealand – often ranking fourth behind Auckland and Wellington – presents an intriguing landscape for us.

Our aspiration is to grow, expand our footprint, and to accommodate larger companies within the coworking model. 

This expansion might even extend to different cities or beach towns, offering unique opportunities. However, the process of how to successfully execute such expansion remains a puzzle. It's an ongoing conversation we engage in – how to translate our ethos into a new setting while upholding what makes Panama distinctive.

For instance, envisioning coworking in a beach town. Many of our residents have a penchant for the beach, visiting every weekend. If we could seamlessly merge work with that beachside leisure, it presents an appealing prospect. These discussions continually echo in our boardrooms, representing our commitment to adapting and innovating while staying true to our core values.

Join on Discord to discuss the story of Panama!