The Hive 2.0, a hybrid coworking space, theater and retail hub in D.C.’s Ward 8 is full — despite the vast economic damage wrought by Covid-19.
“We found that amazing to be quite honest with you,” said Duane Gautier, the CEO of Arch Development Corp., which runs The Hive 2.0 and owns the Anacostia Arts Center building on Good Hope Road SE where it is located. The Hive offers members a low-cost place to work and help navigating the often complex world of business regulations.
The organization had braced for the worst.
“We thought the waitlist would go away and we were going to lose 20 to 25 or maybe even more of our members,” Gautier said.
Instead the coworking venue saw one private office member downgrade to a desk membership, and one private office member leave. But its waitlist for desks remains, and it is in the process of converting that now-available private office into additional space for its 64 coworking members.
The surprising, not-bad news is good news at a time where hundreds of thousands of small businesses have closed, unemployment remains high and coworking as an industry has taken hit after hit. RGN Group Holdings LLC, the company that operates Regus shared office suites, recently filed for Chapter 11 bankruptcy protection for a segment of its portfolio, and once omnipresent coworking giant WeWork is closing locations across the country and locally amid repeated devaluations.
But all is not blue skies for The Hive, which has seen foot traffic drop at its retail spaces, which includes MahoganyBooks, fashion and gift boutique Nubian Hueman, vintage shop Vintage & Charmed, vegan restaurant ELife and organic grocer Fresh Food Factory. The organization decided to waive rent payments during the pandemic, and those retail businesses will begin paying again in September, Gautier said.
That could cause a cash crunch for Arch in November, but Gautier said it was important to keep businesses that had moved to the area.
“These are people who took a shot of moving to Anacostia and the arts center. How could you not accommodate them if you could financially handle it?" he said.
The organization couldn’t do it alone though. It received a Paycheck Protection Program loan from the Small Business Administration and the D.C. government’s small business technical assistance program continued to pay them for their services, Gautier said. The group also received a $5,000 grant from D.C.’s Office of the Deputy Mayor for Planning and Economic Development that allowed them to upgrade the equipment in its theater to put on virtual events and trainings, Gautier said.
The help, plus a line of credit from Truist Bank, is helping the group weather the crisis, he added.
“Right now, we are making payroll, we are paying all our bills,” Gautier said. “I think we are extremely lucky. I think part of it was that we went into it saying ‘lets see if we can keep everything open.’”
That doesn’t mean The Hive hasn’t changed. The organization established protocols for how many people can be in the building at any given time. Their business workshops are now virtual — although that means more people can attend. There is plenty of personal protective equipment and hand sanitizer on the premises, Gautier said, and visitors must have their temperature taken and wear masks when they come in.
The District also allowed the group to take over a few nearby parking spots to use as a curbside pickup for its retail stores, Gautier said.
“I do believe the District, at least from the perspective of Arch, has been very responsive to its needs," Gautier said, "and without that we couldn’t have survived."
