BIRMINGHAM, Ala., March 15, 2022 (GLOBE NEWSWIRE) -- Alabama Futures Fund (“AFF” or the “Fund”) recently placed an investment in The Office Exchange, Inc. (“Office Exchange” or “OE”). Office Exchange has developed a marketplace platform connecting property owners, leasing brokers and property managers with potential leaseholders in order to provide short-term leases for commercial properties. As an increasing portion of the commercial office market shifts away from large company-wide spaces to smaller, more flexible and more distributed geographies, Office Exchange is enabling the monetization of empty or under-utilized office space by connecting those empty spaces with a new generation of workplaces that need the flexibility of short-term rental agreements.
This represents the fourteenth investment from AFF since the Fund launched in Q4 of 2018. As with previous AFF investments in companies located outside the State of Alabama, Office Exchange will move its headquarters to Alabama from Denver, Colorado. AFF served as the lead investor on the round with participation from other US-based investors. Redhawk Advisory, LLC (“Redhawk”) serves as the investment manager of AFF and advised AFF on the Office Exchange investment.
According to commercial developer and management company CBRE, 86% of companies plan to incorporate flex space into their post-pandemic real estate strategies. Similarly, while Jones Lang Lasalle predicts 30% of all office space will be consumed flexibly by 2030.1 Additionally, there are opportunities to convert or reinvent usage scenarios for empty retail and non-office spaces. From flexible event venues to locations that can host large single day meetings, landlords continue to try to find opportunities to generate income for empty and under-utilized spaces.
Through the OE platform, potential “Guests” can search by category, selecting properties based on intended use, geographic location and lease length options, as well as spaces that are furnished or unfurnished. After going through a verification process, “Hosts” can list any available space and adjust availability, pricing and terms based on market conditions in real time. Listings are free to the “Host” and Office Exchange takes a small percentage of the rent and fees charged, allowing Hosts on the OE platform to fill vacant spaces quickly and affordably.
“We are excited about our partnership with AFF and to be moving our headquarters to Birmingham,” said Devin Davie, CEO and Co-Founder of The Office Exchange. “With the combination of the AFF partnership, a growing tech ecosystem in Alabama and phenomenal opportunities to disrupt the commercial real-estate market, we expect this move to be catalytic to our growth.”
Matt Hottle, Partner at Redhawk said, “During the Covid pandemic, we watched workforces go remote and many large lease-holding organizations realize carrying office space for 100% of their employees was an outmoded business model. Companies simply don’t need to have everyone in the office every day, but they do need the flexibility to support a hybrid workforce. The OE platform is the first end-to-end solution for both ‘“Guests” and “Hosts” where the entire process, from finding the space to rent through signing a lease and scheduling rental payments, can be managed through a single platform. The market timing for Office Exchange could not be better.”
About Alabama Futures Fund, LP
AFF seeks to make seed and early-stage investments in Alabama-based operating companies and companies that are willing to relocate their headquarters and principal business operations to Alabama. AFF will target portfolio investments that demonstrate high growth potential, are led by coachable and adaptable founding teams and are focused on large total addressable markets. Additional information about AFF can be found at www.alabamafuturesfund.com.
About Redhawk Advisory, LLC
Redhawk is a registered Investment Advisor with offices in Birmingham. Founded in 2018 by Matt Hottle and Mickey Millsap, Redhawk focuses on identifying investments in early-stage startups with high growth potential across a broad range of industries. For more information, please visit www.RedhawkVC.com.
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1 https://www.crexi.com/insights/the-future-of-coworking-space-and-flex-offices
Contact: Matt Hottle
Telephone: 205-530-3722
E-mail: matt@redhawkadvisory.com
