How Spacelab Detroit used digital mail to overcome adversity and scale to two cities

Bobby Burton didn’t set out to build a coworking space. After 28 years at Detroit’s largest bank, he and his wife, Karen—a freelance architect—found themselves facing a unique problem: she didn’t have access to a professional space where she could meet clients.

So, they created one.

With help from the Motor City Match program, they opened Spacelab Detroit: a flexible workspace designed for architects, builders, and designers.

What started as a design-forward coworking space soon evolved into something more. 

With the help of iPostal1 digital mail, Spacelab built one of its most profitable services, stayed operational through the pandemic, and eventually expanded to a second location in St. Petersburg, Florida.

A city evolving—and a member base that reflects it

Spacelab’s roots are in downtown Detroit, a city that has seen a major resurgence over the last decade. That evolution has had a ripple effect.

“Detroit’s rejuvenation really helped us and our customers,” Bobby says. “Our members are directly involved in rebuilding the city. Every time I walk downtown, I’m amazed by the progress.”

The core coworking clientele remains aligned with Spacelab’s original vision, but their digital mail customer base expands well beyond this niche.

“Our mail clients come from every industry,” Bobby explains. “They’re not just architects and designers. They’re lawyers, startups, and small businesses. It’s a broad mix.”

It’s also a steady one.

In Detroit, Spacelab currently serves around 200 iPostal1 digital mail customers, having peaked at nearly 300 during the height of the pandemic. 

In St. Petersburg, Florida, where Bobby recently opened a second location, they already serve 62.

He shares, “The growth has been amazing to watch.”

The digital mail decision: a smart decision that became a lifeline

Bobby is the first to admit their foray into digital mail wasn’t planned.

“I had never even heard of digital mail,” he says. “Richard from iPostal1 approached us. After a few conversations, I figured we’d give it a shot.”

That blind leap paid off in a way no one could have predicted.

When COVID-19 hit, coworking came to a halt. But digital mail surged.

“Digital mail allowed us to stay open during the pandemic,” Bobby explains. “We were considered an essential business because we handled mail, so we never had to close our doors.”

While half their coworking members paused their memberships overnight, mail services kept revenue coming in.

In fact, many of their core coworking members transitioned to digital mail memberships during that time. 

“We had staff take mail down to people’s cars,” he says. “We kept servicing customers, and that helped us survive. A lot of our competitors didn’t come back after COVID. We did.”

More than a one-time lifeline, digital mail became a stabilizing force for Spacelab’s business, providing steady revenue through past disruptions and giving Bobby confidence that, no matter what comes next, his business is built to weather it.

From Detroit to St. Pete: how digital mail helped Spacelab enter a new market

Digital mail wasn’t just a stopgap. It became a strategic tool for scaling.

When Bobby opened a second Spacelab location in St. Petersburg, he brought digital mail services with him, and immediately saw an opportunity.

“Our only competition here was the UPS Store,” he explains. “They were charging way more than we were, and we managed to convert people pretty quickly.”

More importantly, it gave them a way to build trust in a brand-new city.

“In a new market, people don’t know you yet,” he says. “Digital mail is a low-cost entry point. It gets people in the door. And, over time, some of those customers become coworking clients too.”

The unexpected value of a steady, scalable revenue stream

For Spacelab, digital mail didn’t just deliver revenue. It delivered resilience.

What began as a side experiment has now become one of Spacelab’s strongest financial pillars.

“Digital mail is one of—if not our most—profitable revenue streams,” Bobby says. “We’ve got over 260 customers across both locations, and it’s become mission critical for us.”

In Detroit, they even have a full-time team member dedicated solely to digital mail operations. While most of their customers are low-volume users, the cumulative impact is significant.

“Out of those 260 digital mail customers, we may have 15 or 20 high-volume clients,” Bobby says. “Because most use it sparingly, the workload stays manageable, but the revenue it brings in is significant. It’s a high-margin service with a reasonable lift.”

There’s also an unexpected marketing upside.

“We’ve had digital mail clients rent conference rooms or desks,” Bobby says. “It’s a benefit we didn’t anticipate, but it’s helped bring in even more revenue.”

Weathering downturns by offering members a way to stay

As the economy cools again, Bobby is seeing digital mail play a new role: member retention.

“I’ve had long-term office customers downgrade to digital mail because they can’t afford their office anymore,” he says. “But they want to keep their address and stay connected to our community.”

It’s a win for both sides.

“These are people who’ve been with us since day one—eight-year relationships,” Bobby says. “We don’t want to lose them. This gives them a way to stay with us, even if their business is going through a rough patch.”

That kind of flexibility matters in uncertain times, and Bobby sees digital mail continuing to play a stabilizing role.

“Our digital mail revenue has stayed consistent,” he says. “And I expect it to grow as the economy shifts. It’s a service people need, especially when they’re cutting back in other areas.”

Bobby’s advice for other independent operators

When it comes to his advice for other independent coworking operators considering digital mail, Bobby doesn’t hesitate.

“Try it,” he says. “It’s not a huge burden on your resources, especially when you’re starting out. And it gets you into the market. If it doesn’t work, you can always stop.”

He adds, “But for us, it’s been worth it, and then some.”

He also offers a practical heads-up: digital mail is a regulated business, and operators need to stay compliant. But that doesn’t mean it’s overwhelming.

“Yes, compliance has gotten a little tougher with things like 1583 tracking,” Bobby says. “But iPostal1 helps. Their automation tools keep us on the right side of the post office. We’ve had no issues with regulators.”

Bobby has spoken to plenty of operators curious about digital mail. When they ask where to start, he points them straight to iPostal1.

“There are two big reasons,” he says. “First, the support. We’ve run into some tricky situations, and they’ve always helped us work through them. Second, the technology. Their platform makes our job easier, and it makes life easier for our customers, too.”

That ease of use is a big part of why Spacelab can handle the volumes it does.

“If someone’s just getting started or doesn’t know where to go, I push them to iPostal1,” Bobby says. “It works. It scales. It’s manageable. And it makes our lives easier.”

Ready to get started with iPostal1? Contact us today to start building a new revenue stream for your workspace with digital mailbox solutions.