But you're not likely to find real estate that cheap in the city. Even in the current economy. Trust me, I've been looking. (shameless plug: I just started a coworking space in Atlanta called Ignition Alley: http://www.ignitionalley.com )
I am currently working out of the Caroline Collective when in Houston. They're a non-profit coworking outfit. (http://carolinecollective.cc/) I've already met some interesting people. (TX-RX Labs for starters: http://www.houstontechnologycollective.org/) This seems to have some of the benefits, but doesn't require travel outside of my home city.
If I wanted to do a startup that required 6-9 months of full time development, the room+board incubator sounds attractive.
