CBRE Group’s Industrious has signed its newest location in Manhattan, Industrious Lex & E 50th St. Starting this fall, the flex office provider will occupy the entire second floor, spanning 20,000 square feet, at 560 Lexington Ave. in Midtown East. Cushman & Wakefield negotiated on behalf of the tenant, while landlord Rudin had in-house representation.

The new space will have 158 seats available for solo entrepreneurs, growing teams and established businesses. The amenity suite comes with a new café, lounge, conferencing area and outdoor space, currently created by Rudin within the tower.

The Lexington location will join Industrious’ other New York City spaces: Tower 49, at 12 E. 49th St.; Midtown on 50th St, at 135 W. 50th St.; Carnegie Hall, at 152 W. 57th St.; 1411 Broadway; Bryant Park off Fifth, at 25 W. 39th St.; 261 Madison; and Penn 1, at 250 W. 34th St.

Cushman & Wakefield’s Justin Halpern, Ed Wartels and Ben Bouganim assisted Industrious. Kevin Daly of Rudin represented building ownership.

A Midtown Manhattan office building

Built in 1980 and cosmetically renovated in 2015, the office building at 560 Lexington Ave. features floorplates averaging 17,204 square feet and 3,500 square feet of retail space, according to CommercialEdge information. The 22-story high-rise is easily accessible to public transit and Grand Central.

The tower is LEED Silver-certified and gold-certified by WiredScore, featuring a building operation system that optimizes it through AI to reduce emissions. The Class A property recently underwent a modernization program that involved creating a new lobby, adding new elevator cabs and constructing an on-site, glass-enclosed subway entrance for the nearby train station.

State of the NYC coworking market

CommercialEdge listed Manhattan as the top coworking market in the U.S. for total square footage as of February. Chicago and Los Angeles were the other two metros on the podium.

Michael T. Cohen, a principal with Williams Equities, which owns and operates approximately 3.5 million square feet of NYC office space, told Commercial Property Executive, “Coworking is back. Once again, it is part of the mix of tenants expanding into and absorbing office space in Manhattan.”

He added that the epoch of coworking firms “signing a market-rate lease and absorbing the lion’s share of the risk is gone for good.” Similarly, few New York City building owners have been willing to accept the so-called “management deals” under which they enjoy the “upsides and downsides.”

As such, the sophisticated coworking operators have developed new leasing models that involve sharing their profits and losses with the landlord, Cohen mentioned.

READ ALSO: Where’s the Coworking Sector Headed?

“WeWork appears to be making a comeback by leveraging its occupier relationships and taking space where it has a pre-existing commitment to fill. On the other hand, Industrious is exploiting the demand for office suite occupiers and landlords looking to add an amenity to their building and diversify their product mix.”

Cohen said IWG and others are all scouting suitable locations across the city.

“You can expect many coworking lease announcements as the year progresses,” he added.

Adapting to businesses’ needs

Flex space providers’ ability to adapt to businesses’ evolving needs and deliver high-quality office and conference spaces has made them a valued partner for local banks, hedge funds and companies “that simply don’t have enough space for all of their employees,” said Jeff Gural, chairman of GFP Real Estate.

Lee Brodsky, CEO of BEB Capital, told CPE, “While many coworking operators have come and gone, flexible office space has remained essential,” underscoring that today’s hybrid and remote workers “seek spaces that foster community, productivity and connection—beyond a home office or coffee shop.”

Recognizing this demand, BEB Capital launched BEB Work at 26 Harbor Park Drive in Long Island, creating a coworking space designed for professionals to work alongside like-minded individuals in the community.

“Since our February launch, we’ve seen strong demand for private offices and expect momentum to continue growing in the months ahead,” Brodsky concluded.

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As flexible workspaces remain a vital component of the office sector, several markets continue to stand out for their expansive coworking presence. February CommercialEdge data offers insights into the coworking landscape across these top-performing markets, highlighting shifts in footprint and market share.

Nationwide, coworking spaces add up to 58.5 million square feet across 7,776 locations, accounting for 2 percent of the country’s total leasable office stock. At the forefront, Manhattan retained its position as the largest coworking hub, with more than 7.8 million square feet spread across 275 locations, representing 2.3 percent of the metro’s total rentable office inventory. This underscores the enduring demand for flexible space in one of the world’s most competitive real estate markets.

Other metros with large coworking shares

Chicago and Los Angeles followed closely, each with coworking stocks amounting to 2.2 percent of total leasable office supply—above the national average, according to CommercialEdge. Chicago’s 269 coworking locations encompassed 2.9 million square feet as of February, while Los Angeles led in site count with 293 locations totaling nearly 4 million square feet. Atlanta also matched this 2.2 percent share, with 244 coworking spaces collectively covering close to 2.1 million square feet.

Denver and Phoenix posted comparable figures, with coworking making up 2.1 percent and 1.9 percent of their respective office stocks. Denver recorded 1.4 million square feet across 236 locations, while Phoenix followed with 1.3 million square feet across 155 sites.

Dallas-Fort Worth continues to be a one of the top coworking markets, with 2.3 million square feet spread across 284 locations, representing 1.8 percent of its total office space. As per CommercialEdge data, Boston and Houston report similar proportions, with Boston’s 2.7 million square feet—211 locations—and Houston’s 1.7 million square feet—232 locations—each comprising 1.8 percent of their markets’ rentable inventory.

Washington, D.C., rounds out the top 10 with 2.8 million square feet of coworking space distributed in 279 locations, representing 1.6 percent of the metro’s total office supply.

—Posted on February 18, 2025

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As part of a private-public partnership, Formwork Development and Jefferson Facilities Inc. have opened Primary Workspace, a 13,000-square-foot coworking space in an historic schoolhouse. The building is in Gretna, La., across the Mississippi from New Orleans. The 1911-built property stood vacant for more than 50 years. 

Primary Workspace opened after extensive renovations, with a $3.5 million price tag. The City of Gretna contributed $2.7 million in American Rescue Plan Act funds, while the remaining $800,000 came from Louisiana State Historic Tax Credits. 

Schoolhouse-turned-coworking

The 20,000-square-foot property is at 519 Huey P Long Ave., comprising office space, as well as 2,800 square feet of for-lease retail space. The available space stands alongside a German Cultural Museum, the only tenant that has remained operational while the rest of the property was vacant. Primary Workspace’s amenities include a restored two-story auditorium, a boardroom and for-rent event space. 

Formwork Development led the project from the private sector side. Jefferson Facilities Inc., acting on behalf of Jefferson Parish and the city, was the public-sector partner. Studio BKA worked as architect and interior designer, alongside general contractor Perrier Esquerré Contractors.  

The coworking industry has began adapting to a growing trend towards smaller, community-focused environments, reflecting the modern worker’s preference for adaptable and team-oriented spaces. In a recent 2025 outlook, coworking space providers opened up about the essential role of flexible offices in the modern work culture, as well as what the sector needs to remain resilient.

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Stark Office Suites has extended its lease at Jack Resnick & Sons’ 110 E 59th St. in Manhattan by 10 years. The flexible office space provider occupies the 22nd and 23rd floors of the 612,181-square-foot building. 

In conjunction with the renewal, Resnick and Stark have agreed to partner on upgrading the 26,568 square feet the latter occupies at the property. Renovations will include improvements to the reception, common areas, meeting spaces, kitchenettes and restrooms.  

Stark Office Suites opened its first locations in 2004 and has since grown to 13 flex office spaces across New York City, Westchester, Long Island and Connecticut.

A Manhattan tower on 59th Street

Completed in 1969 by Resnick & Sons and designed by W. M. Lescaze, the high-rise on 59th Street rises 37 stories just off Park Avenue in the Plaza District.

Its tenant roster features Zelnic Media Capital, Royalty Pharma, Cantor Fitzgerald and Estee Lauder. The property was awarded the LEED-Gold certification for operation and management, according to CommercialEdge information.  

There were 273 coworking locations in Manhattan as of November, totaling 11.3 million square feet, CommercialEdge research shows. Trailing behind Manhattan, Chicago and Washington, D.C., have 6.8 million square feet and 6.7 million square feet, respectively, out of the 136.3 million square feet of flex office spaces across the U.S.

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The coworking sector is set for a dynamic 2025 due to further adoption of hybrid work models and more businesses embracing in-person work. But this doesn’t mean there won’t be any bumps along the way as the sector cannot operate in a vacuum.

“The worst of commercial office real estate is not past us, so while coworking may offer an opportunity, the underlying headwinds that commercial office real estate faces—expensive capital and stagnant physical occupancy—persist,” said CommercialEdge Associate Director Peter Kolaczynski.

To adapt to these unceasing challenges, office operators have been right-sizing their portfolios to include more flex offerings. This has not only transformed the physical environment of traditional offices, but also altered lease terms, as tenants today expect more flexibility in how and when they use their space.

Key trends in the coworking space

High demand for flexible offerings and mounting return-to-office mandates are two of the most prominent trends in the sector today. A recent WeWork survey found that 59 percent of companies plan to adopt flexible solutions over traditional offices to expand their workspaces over the next two years. Notably, 95 percent of remote companies looking to increase their office space favor flexible options.

LISTEN TO: Step Into My Office: CBRE’s Take on Rethinking Office Space and the Future of Flexibility

“We are continuing to see very strong demand off the back of this shift toward flexibility and that’s why we’re seeing our network grow at its fastest-ever rates,” said Mark Dixon, CEO of International Workplace Group. Over the past year, the company added nearly 900 new locations globally under its Regus, Spaces, HQ and Signature brands. Most expansions were in suburban and community-focused markets such as the Red Bank borough in New Jersey, but also in Milwaukee, and Boca Raton, Fla.

Until now, although 80 percent of organizations have return-to-office policies put in place, only 17 percent of them really enforce them, CBRE’s research found. But that number is anticipated to increase going forward.

“The biggest shift I expect to see is companies following the lead of recent RTO mandates and deciding to increase the amount of time they spend in-office, with more opting to go full-time,” said WeWork Vice President & Head of USC Sales Luke Robinson. “This will require flexible space providers to offer an ample variety of workspaces that can accommodate employees up to five days a week.”

More employees in the office means more conference rooms, communal areas and private phone booths, among others. Operators are already making changes to their office layouts as the focus rapidly shifts from where employees work to how they work.

“In 2025, we anticipate an evolution of business priorities with the conversation moving beyond the physical location of employees with companies requiring everyone to be in a single building to the productivity of workers and retention of talent instead,” said Dixon.

To respond to the increased demand for specific amenities and services that support teamwork and collaboration, operators are increasingly adding spaces that foster connection.

“(Employers) want workspaces that bring people together and they need amenities like technology-powered meeting rooms, flexible spaces designed to support diverse workstyles and event programming to help achieve that goal,” Robinson said.

Private offices, smaller conference rooms and virtual mailboxes are also increasingly popular, catering to businesses that seek professional environments without long-term commitments, according to Jason Anderson, president of Vast Coworking Group. Additionally, assistant services such as customizable call answering services allow business owners to focus less on admin work and more on their growth and customers, all while keeping that human element.

Shifting business models

To cater to the increasing number of clients, coworking operators have also been adapting their business models while keeping their focus on providing flexible, scalable and customer-centric solutions. Over the past few years, they have been more open to collaboration and networking. WeWork launched Coworking Partner Network, a partnership with Vast Coworking Group that allows tenants to access spaces across both brands.

“Our partnership with WeWork has been an industry first,” said Anderson. “I look at it as the beginning of a change in global coworking operations, modeled like the Oneworld Alliance in the airline industry.”

This strategic approach further reinforces the idea that operators need to leverage each other’s strengths to provide members with access to a broader number of locations and services. By combining suburban-focused partners with WeWork’s urban stronghold, these networks create more opportunities for hybrid and distributed teams, reflecting the sector’s pivot toward greater accessibility and choice.

“Franchising is the vehicle driving our expansion and we have always focused our growth on underserved suburban markets instead of hyper-growth CBDs, which complemented WeWork’s portfolio and solidified our partnership,” Anderson added.

Another way coworking operators have been catering to members’ latest needs is by adapting their membership options. For example, WeWork launched two digital products: WeWork All Access and WeWork On Demand. The first one provides access to 450 locations worldwide, whereas the second one has a pay-as-you-go model that allows tenants to book spaces and meeting rooms at 300 locations instantly.

On the leasing side, coworking operators have been embracing non-traditional agreements to provide companies with more control over their office footprint. From shorter lease terms to flexible capacity models, these changes are helping businesses remain agile in uncertain times.

“We had a tech company who designed their workplace strategy with 100 All Access passes and WeWork Workplace instead of a traditional private office, supporting their commitment to flexible work while giving employees the ability to access in-person space as they need it,” Robinson said.

As of November, Manhattan, Chicago and Los Angeles were the top metros for coworking space, with the latter emerging as the largest market for locations, with 277 spaces, CommercialEdge data shows. International Workplace Group’s Regus and HQ brands were the top operators, followed by WeWork, Industrious and Spaces.

Vast Coworking Group was one of the companies that expanded significantly in 2024. After acquiring Intelligent Office and adding 54 locations across the U.S. and Canada, Vast later opened 19 new locations across its franchise brands. International Workplace Group also added to its network, signing 200 new locations across the country. Industrious—which was recently acquired by CBRE—expanded its portfolio in major markets, adding two locations in Los Angeles: a 19,000-square-foot space in Century City, Calif., and a 20,752-square-foot space in Westwood, Calif. The company also doubled its lease at 860 Broadway in Manhattan.

What’s next?

Collaborations, portfolio expansions and the wider adoption of hybrid work models reflect the coworking sector’s resilience. Last year, most operators saw improvements across several metrics. After emerging from bankruptcy, WeWork registered a 9 percent annual increase for on-demand bookings as of October, while International Workplace Group recorded the highest revenue in the company’s 35-year history.

As operators continue to prioritize bringing offices closer to employees, particularly in high-demand suburban markets, Kolaczynski expects continued coworking growth in these areas. Meanwhile, traditional office owners in business districts will look to adopt more flexible options, either by creating their in-house coworking brands or by entering into partnerships with experienced operators.

READ ALSO: Elevating the Coworking Experience

“I predict that flexibility will remain key in 2025,” Robinson said. “This year’s return-to-office mandates have shown that companies see the office as critical to their success, but they have not made final decisions on how many days they will be in person.”

Besides partnering with each other more often, coworking providers must keep innovating to support evolving workstyles, and offer solutions that cater to both individual employees and large teams.

“Occupancy should increase given the recent consolidation by operators,” said JLL Head of Property Sectors Research for the Americas Scott Homa. “Management agreements will remain popular given capital constraints and the high cost of interior construction. We could see continued M&A activity and more franchising.”

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TailoredSpace has opened its latest coworking space in Orange County in San Clemente, Calif. This marks the city’s first full-service flex office.

The 10,500-square-foot location provides conference rooms, coffee and snacks, parking space, as well as member events and parties. The interior design represents a combination between a residential living room and a commercial space.

Other tenants at the property include Melin, 24 Hour Fitness and Saddleback Church.

Located at 100 Avenida La Pata, the building is some 3 miles from downtown San Clemente and has access to Interstate 5. John Wayne Airport is 28 miles away.

Lee & Associates Senior Vice President Tim Walker worked on behalf of the landlord in the transaction.

Orange County coworking footprint

Completed in 1999, the two-story, 43,560-square-foot building sits on a 9-acre site. The property has been under Metro Commercial Realty Corp.’s ownership since 2013, when W.P. Carey sold it for $11.3 million, according to CommercialEdge. In 2014, the asset became subject to a $15.5 million loan originated by EquiTrust Life Insurance Co., with a maturity date set for 2034, the same source shows.

The San Clemente office is the 10th TailoredSpace location in Southern California. The company’s coworking landscape includes nine other locations in Brea, Carlsbad, Chino Hills, Corona, Laguna Niguel, Rancho Cucamonga, Riverside, San Juan Capistrano and West Covina and plans to add five more coworking offices in the area this year.

TailoredSpace opened its Laguna Niguel location back in October 2024. The company occupies nearly 12,000 square feet on the entire first floor at a 280,979-square-foot retail campus, owned by Dunhill Partners.

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However, the general sentiment remains the same: approaching workspaces with a hospitality-centered perspective by supporting a better work-life balance. “Our latest findings reveal that nine out of 10 CEOs agree that hybrid work represents the future of employment, as it gives employees the work-life balance they are looking for while increasing profitability for employers through lower real estate costs,” said Mark Dixon, founder & CEO of International Workplace Group. He also added that professionals have a desire to work within their local communities, close to where they live, making convenience one of the most important factors when it comes to coworking locations.

As of November, there were 7,628 locations across the U.S., totaling 136.3 million square feet, CommercialEdge data shows. Manhattan, Chicago and Washington, D.C., have emerged as the top three markets for square footage, whereas Los Angeles remained the market with the largest number of locations in the country with 293 spaces. Atlanta and Denver, which are some of the most affordable cities for remote workers according to CoworkingCafe research, have also made it to the top 10.

By leveraging CommercialEdge data and insights from some industry experts in the field, we’ve analyzed some specifics for each market and the factors that have contributed to these markets’ growth when it comes to coworking. Here are the top 10 markets for coworking space by total square footage in the U.S.:

1. Manhattan

Manhattan gained the top spot for coworking spaces, with 273 locations totaling 11.3 million square feet in the market. WeWork’s Vice President & Head of USC Sales Luke Robinson believes that the sector’s growth in New York and Manhattan, implicitly, reflects the trend of finance and technology companies opting for return-to-office strategies and bringing workers back into high-quality spaces with top-tier amenities to encourage attendance.

WeWork was the top coworking operator in the market, with 31 locations adding up to 2.4 million square feet. In 2024, the company expanded its location at 575 Lexington Ave. with 15,000 square feet of additional space and converted the 14th floor into a flexible work lounge. More recently, WeWork also partnered with Amazon, which will occupy 304,000 square feet at 330 W. 34th St., which marks one of the largest deals in Manhattan last year.

Industrious took the second spot with a 1.3 million-square-foot inventory and kept expanding its market presence. The company’s Regional Director Kevin Jung views NYC as a significant market due to high membership growth and revealed that it plans to expand its locations, especially in higher-demand areas such as Midtown and Union Square. Industrious recently opened City Hall, a new location in the Financial District, and plans to open NoMad, another space at 776 Sixth Ave. this February, mirroring the “commitment to serving the city's growing flexible workspace need,” as Jung mentioned.

Regus follows in with a 727,600-square-foot portfolio. In October, the firm signed a lease renewal for a 37,031-square-foot space in the Financial District. Boutique and design-centric coworking spaces are also on the rise in the city. Convene continued to expand their presence by adding 22,519 square feet to its 360 Madison Ave. location and opening a 30,000-square-foot meeting and event space in Midtown Manhattan, whereas The Malin recently announced another 32,700-square-foot space in the Flatiron District.

2. Chicago

Chicago is second for coworking space with 6.8 million square feet spanning 261 locations, CommercialEdge data shows. Shifting workplace dynamics, enterprise growth and strong neighborhood demand have been the main factors influencing the sector’s growth in the metro. Robinson attributed WeWork’s 10 percent increase in footfall to companies that focus on in-person collaboration and hospitality-focused amenities.

Industrious has seen a surge in interest, with neighborhood locations like Wicker Park and Fulton Market attracting small businesses, while the Loop caters to a growing enterprise clientele. According to Kelsey Emery, the company's regional director, most large-format suites in Chicago are sold out, prompting plans to expand offerings in the Loop and introduce new units for small businesses in areas like Lincoln Park.

The hybrid work model further accelerates demand for coworking, as employees seek flexibility to work closer to home. Dixon notes that suburban growth remains strong, with areas like Naperville experiencing "explosive growth" as part of this trend, further underlining Chicago’s dynamic coworking landscape. Thus, the company focuses on smaller towns and suburbs for 80 percent of the new center signings. Regus, part of International Workplace Group, remained the top coworking operator in the market and the network recently announced that it will add nine new locations in Illinois, primarily in the Libertyville, Naperville and Orland Park suburbs. In September, the firm vacated the 35th floor at 180 N. Stetson Ave., which Expansive now occupies.

3. Washington, D.C.

The nation’s capital has made the top three for coworking space, with 275 locations covering 6.7 million square feet, mainly due to the city’s professional density and a high demand for flexibility. Proximity to government agencies paired with hybrid work models and the capital’s entrepreneurial ecosystem further contribute to the sector’s growth.

Washington, D.C., remains the most affordable metro for virtual office memberships with rates as low as $80, compared to Chicago and New Jersey with $210 and $205 membership prices, respectively. However, the metro has some of the highest rates for open workspaces, $99 higher than the $150 national median.

Regus remains among the top operators in the market with a footprint of 45 locations. Industrious currently operates 14 locations in the city and its surrounding areas, doubling its space since February 2023, whereas WeWork manages nine locations in the metro. More recently, Carr Workspaces opened a new 26,331-square-foot space in Arlington, Va., while Workbox entered the market with a 29,000-square-foot location within a mile of the White House, scheduled to open soon.

4. Los Angeles

Although Los Angeles is not the national leader for coworking inventory, the metro leads the U.S. for sheer number of coworking locations, with a footprint of 293 spaces, totaling 6.6 million square feet. Its diverse creative industries, including entertainment and media, as well as freelance opportunities, call for flexibility. Another rising trend in the market is the growth of spaces that cater to creative industries, offering niche amenities, such as podcasts, media and design studios.

Convenience has also emerged as a determining factor in the market’s coworking scene, Robinson pointed out. “In Los Angeles, more than anywhere else, the office has to be worth the commute, which has solidified a preference for coworking locations close to workers' homes”, he added. The company has a portfolio of 10 locations, including surrounding areas such as Glendale and Pasadena.

International Workplace Group currently operates 48 spaces and is actively expanding its portfolio, planning to add 25 more locations shortly, Dixon confirmed. Other operators, such as Industrious, are actively increasing their footprint. Last year, the company opened a new 20,752-square-foot location in Westwood, Calif., and signed a 19,000-square-foot lease at the North Tower of Watt Plaza. The company has also unveiled plans for two new locations in West Hollywood and Beverly Hills, set to open next month and in the fall, respectively.

5. Dallas-Fort Worth

The Dallas-Fort Worth area has emerged as a major player in the coworking sector and is the runner-up in terms of spaces with 284 locations spanning 5.2 million square feet. Proximity to key business districts such as Dallas Downtown Historic District, Uptown Dallas and Fort Worth’s Sundance Square is a key factor when it comes to coworking. In terms of affordability, open workspace prices in the metro saw a $48 reduction from $198 in the second quarter of last year, bringing the membership cost in the area in line with the national median.

In Dallas, Regus was the largest operator and plans to expand its portfolio in the Metroplex by 20 to 30 percent next year, Dixon said. Lucid Workspaces and Cado are also among the top operators. The first operates seven locations in Dallas and two in Fort Worth and recently expanded its portfolio with a 35,234-square-foot coworking space. New entrants such as Workbox are also capitalizing on the market’s potential. In June last year, the company opened a 50,000-square-foot space at Victory Park, a $3 billion master-planned development in Dallas.

6. Boston

Boston’s 204 coworking spaces, totaling 4.6 million square feet, are concentrated in popular neighborhoods among young professionals and enterprises. Accessibility and high-end amenities are among the factors contributing to the sector’s growth in the metro. “Boston companies are focused on ease of transportation and nearby access to excellent amenities—resulting in strong demand for Back Bay and Seaport, both desirable areas for the key 24- to 40-year-old professional demographic,” pointed out Robinson.

As of October, Regus had the largest footprint, with 32 locations spanning 588,565 square feet, followed by WeWork, which currently operates seven locations in the city. Recently, the company extended its stay at State Street Financial Center, by entering a revenue-sharing agreement for a three-floor coworking space comprising 64,323 square feet.

Industrious is also expanding its portfolio in Boston and reached a 90 percent occupancy rate at Back Bay/Copley Square and Dedham locations. In October, the company opened a 31,500-square-foot location across from South Station, formerly occupied by WeWork, and plans to add three new spaces next year, Jung confirmed. “In particular, we anticipate increased interest from larger enterprise clients that are balancing calls to return workers to the office with flexible solutions that best meet their employees' needs,” he added.

7. Atlanta

Atlanta’s coworking landscape consists of 238 locations covering 4.4 million square feet, thriving in areas with walkable amenities and mixed-use developments. “Live-work-play areas are outperforming other business areas. Walkable amenities and centrally located properties are key. Larger corporate occupiers have continued to move away from fixed to flex and hybrid models to encourage more collaboration with their teams,” said Rhonda Johnson, Serendipity Labs’ regional vice president for the Southeast.

She also pointed out that amenities and flexibility on terms are determining factors in the market’s coworking scene, on par with the general trend of a growing demand for more dynamic workspaces. Downtown and Midtown Atlanta, including Peachtree Center, are among the neighborhoods that have become hotspots for coworking. However, many flexible workspaces are also located in suburban areas, in submarkets such as Alpharetta and Cumberland/Galleria.

Regus is among the top operators in the market, currently operating 28 locations in the metro, followed by WeWork and Industrious. Other companies, such as Serendipity Labs, focus on suburban and secondary markets, managing four locations in the metro. New providers are also entering Atlanta’s coworking scene. In November, e|spaces signed a 32,030-square-foot lease at 1600 Parkwood Circle, offering private offices suitable for individuals and teams of up to 10 members, meeting rooms and collaborative workspaces.

8. Houston

Houston’s 229 coworking locations, comprising 4.4 million square feet of space reflect the city’s adaptability to reinventing its office landscape through cost-effective and flexible solutions. Business-centric areas such as Greater Uptown, Downtown Houston and The Heights are catering to a range of companies and professionals. The metro’s affordable rates for dedicated desks which are below the $300 national average also push for the sector’s growth.

Regus is leading the metro’s coworking market with a 574,106-square-foot footprint, followed by The Cannon and Workstyle Flexible Offices, with 444,341 square feet and 372,169 square feet, respectively. International Workplace Group expanded its portfolio in September with a 65,000-square-foot lease in downtown Houston. In May last year, The Cannon also opened its seventh location in the city at Two Memorial Plaza, offering 38 private offices alongside seven meeting rooms and collaborative areas.

9. Denver

Although Denver registered a slight decrease in coworking footprint, the 234 locations in the market total 3.6 million square feet, mirroring the city’s return-to-office policy adoption and the need for networking. However, some of the defining criteria when it comes to coworking in the market have changed, Serendipity Labs’ Director of Sales in Denver Morgan Hafner pointed out.

“We are seeing requirements come through for large teams in smaller private offices vs large team rooms. Teams looking for opportunities to collaborate, so we’re seeing an increasing use of common areas such as coworking and have created additional networking opportunities and events to enhance this feeling of community,” she explained. Convenience has also become an important requirement for professionals, as they seek shorter distances to transportation and commute. The company currently operates a 25,181-square-foot location in the Union Station neighborhood, which accommodates those requests, Hafner added.

Regus remains the top operator in the city with 33 locations totaling more than 600,000 square feet, followed by WeWork with five locations comprising almost 277,000 square feet. Vast Coworking Group is also an active operator in the market, managing nine locations under its Venture X, Intelligent Office and Office Evolution brands, totaling roughly 116,000 square feet.

10. San Francisco

San Francisco made it to the top 10 coworking markets with a footprint of 3.7 million square feet across 130 locations, driven by a highly dynamic and innovative workforce, paired with the highest office prices in the country. In terms of affordability, open workspace memberships saw a $74 price reduction at the end of the third quarter, with dedicated desks being the total opposite and standing at $450, highly above the $300 national average.

WeWork has the largest portfolio in the city, operating seven locations spanning 736,795 square feet, followed by Gateway Labs by Lilly and Regus, with 438,339 square feet and 337,544 square feet, respectively. The latest operates 84 locations in Northern California, seven of which are in San Francisco, but is eyeing more opportunities in the region and planning to add 30 new locations through the market and the Bay Area, Dixon said.

Another active provider is Industrious, which in January last year partnered with Ingka Centres, a subsidiary of IKEA, to open a distinctive coworking location based on a holistic approach. The 46,470-square-foot space acts as both a collaborative environment and an IKEA furniture showroom. The company is also planning to open The Cove, another 29,000-square-foot space next month.

The post Top 10 Metros for Coworking Space appeared first on Commercial Property Executive.

San Francisco-based flex office provider Pacific Workplaces will open in February a 13,000-square-foot coworking space on the seventh floor at 84 W. Santa Clara St. in San Jose, Calif.

The new location was initially scheduled for completion by September 2024. This is the company’s second coworking space in Silicon Valley, after opening another location in 2023 in Cupertino, Calif.

Amenities will include 51 private offices, six fully equipped meeting rooms, workstations, private phone booths and flexible desk options, designed by Workplace Studio and suited to elevate the coworking experience.

Other tenants in the building include TMC Financing, Hann Law Firm, Silicon Valley Accounting-Tax, Power Personnel and Innovar Marketing, according to CommercialEdge information.

Completed in 1976, the eight-story property is a Class B, 110,000-square-foot building. Pestana Properties owns the LEED Gold-certified asset, the same source shows. The mid-rise features 13,338-square-foot floorplates, three passenger elevators, 49 car parking spaces and 12,000 square feet of retail. Amenities include a conference center, tenant lounge and fitness center.

The property is in downtown San Jose, across the street from Blue and Green Line light rail stops and within 1 mile from the San Jose Diridon Station. The San Jose Mineta International Airport is some 3 miles northwest. Major thoroughfares in the area include interstates 280, 680 and 880, as well as State Route 87.  

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Carr Workplaces has reopened its coworking location at 300 New Jersey Ave. N.W. in Washington, D.C. The space was subject to a complete makeover following a lease renewal.

The company has provided flex office spaces at the property since 2011, where it occupies 27,500 square feet, CommercialEdge shows.

CSO Architects oversaw the designs for the new workspace, located on the building’s third floor. Amenities include an expanded reception and social hub, a library, a wellness space, conference rooms, as well as exclusive catering and beverage services.

READ ALSO: Coworking Spaces Surge Amid Changing Demand

Last year in November, Carr Workplaces signed a 26,331-square-foot lease with Comstock Holding Cos. The new flex office location is scheduled to open this spring at The Hartford, in Arlington, Va., expanding the company’s Mid-Atlantic footprint.

Part of America’s Square on Capitol Hill

The property came online in 2009 and it has been under Jamestown ownership since 2015, when the company acquired it from Dweck Properties, according to CommercialEdge. The asset is part of America’s Square office complex, located one block away from the Senate Office Buildings, the Supreme Court and U.S. Capitol.

The Class A, 10-story 255,904-square-foot building has a LEED Gold certification. The property features 26,000-square-foot floorplates, four passenger elevators, 252 car parking spaces and 4,000 square feet of retail. The tenant roster includes American Council of Life Insurers and United Soldiers and Sailors of America, the same source shows.

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Coworking and flexible office provider Venture X has signed a 30,262-square-foot lease at Cousins Properties’ Harborview Plaza in Tampa, Fla. The company will occupy the entire sixth floor at the property and is expected to move to Harborview Plaza in January 2026.

The present lease is Venture X’s ninth coworking location in Florida and the first in the Tampa Bay area.

JLL Executive Vice President Jim Moler and Senior Vice President Deana Beer worked on behalf of the ownership, while CBRE Senior Vice President K.C. Tenukas represented Venture X.

Harborview Plaza

Atlanta-based Cousins Properties owns and manages Harborview Plaza since its acquisition in October 2015 from Highwoods Properties. The office mid-rise traded for $49 million, according to CommercialEdge information.

Completed in 2002, Harborview Plaza is a Class A, 205,049-square-foot property covering a 6.7-acre site. The tenant roster includes Milner Inc., Mercer, HCA West Florida Division Office and First American Title Insurance Co., the same data provider shows.

The office building is at 3031 N. Rocky Point Drive West in the Westshore submarket, just off Florida State Road 60 and near Tampa International Airport. Downtown Tampa is some 8 miles east. Major thoroughfares in the area include interstates 275, 4 and 75.

Amenities at the property feature an on-site café, a fitness center, a conference facility, multi-level parking and free shuttle service to Tampa International Airport.

To address the demands of today’s hybrid workforce, coworking spaces are evolving. Operators are increasingly adopting business models similar to those in the hospitality industry, incorporating a diverse range of workspace types under consolidated networks.

The post Cousins Properties Secures Coworking Tenant in Tampa appeared first on Commercial Property Executive.

Jay Suites and Jay Conference have signed a 12-year lease extension for 60,000 square feet of shared space at 515 Madison Ave., a 370,000-square-foot office building in Manhattan’s Plaza District. GFP Real Estate owns the 42-story high-rise.

GFP Chair Jeffrey Gural arranged the deal spanning floors eight to 10 on behalf of both parties.

The flex provider, the largest privately held coworking company in New York City, first signed a lease at the property in 2019, when it occupied two floors. Later, the firm committed to another floor that houses Jay Conference, a conference center model catering to large-scale meetings.

READ ALSO: Elevating the Coworking Experience

The 515 Madison coworking location comprises 101 furnished executive suites ranging from single-person units to 20-people team spaces. Additionally, there are four flexible meeting spaces with a capacity of up to 24 people, multiple business lounges and phone booths.

Jay Suites currently has 13 coworking locations across the city. In August, the firm paid $35 million for 8 W. 38th St., a 142,000-square-foot office building in Midtown Manhattan, 1 mile from 515 Madison Ave. That building houses the company’s new conference rental business, located on the mid-rise’s third floor.

A historical building in the Plaza District

Also known as the DuMont Building, the office tower at 515 Madison Ave. is close to Rockefeller Center and 1 mile from the Empire State Building. Designed by John H. Carpenter, the high-rise was completed in 1932 and went through cosmetic renovations in 2010, according to CommercialEdge information.

One of the property’s most notable features is its broadcasting antenna, which was involved in the inaugural broadcasts of Allen B. DuMont’s experimental television station in 1938.

The building features nine passenger elevators and 8,000 square feet of first-floor retail space, with floorplates ranging between 3,956 and 16,346 square feet, the same source shows. Its tenant roster also includes Manhattan Five Partners and Wildes & Weinberg, among others.

Coworking sector is on the rise

The coworking sector is seeing continuous growth, providing solutions that address the evolving needs of the workforce. Nationally, there were 7,538 locations recorded at the end of the third quarter of last year, reflecting a 7 percent increase from the previous quarter, according to a CommercialEdge office report. The total square footage reached 133.5 million, representing a 450-basis-point growth.

Manhattan led nationwide for coworking inventory, with 11.2 million square feet. And the borough’s stock will soon grow, as The Malin announced plans to open a 32,700-square-foot coworking space in the Flatiron District this spring.

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Workbox is entering the Washington, D.C., market with a 29,000-square-foot coworking space at 1333 New Hampshire Ave. NW in Dupont Circle. The new location is scheduled to open in February of 2025. 

The office building is a 360,000-square-foot property that The Meridian Group has owned since 2018. The company bought the asset for $136.5 million from BXP Inc. (formerly Boston Properties), according to CommercialEdge data. In 2021, the building was subject to a 10-year $187.7 million loan originated by KKR & Co. Inc. 

Ongoing expansion

Completed in 1978 and renovated in 1999, the Class A property in Dupont Circle rises 12 stories and includes first-floor retail space and underground parking. Workbox will occupy an entire floor that features offices, lounges and conference rooms for as many as 40 people. One of the property’s largest tenants is American Bankers Association, which currently leases more than 80,000 square feet, the same data provider shows.

Located in the Golden Triangle Business District, the office building is directly across from the Dupont Circle Metro Station, within 1 mile of the White House and some 2 miles from Embassy Row.

The lease in D.C. marks the company’s 12th coworking location nationwide. Earlier this month, Workbox launched a flexible office space in Pittsburgh. Slated to open in January 2025 at One PPG Place Tower, this 23,000-square-foot location is the company’s first coworking space in the Steel City. Workbox will occupy the entire 31st floor within the 40-story building.

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Regus has fully leased 429 Lenox, a 45,789-square-foot Class A flex office building in Miami Beach, Fla. The lease covers more than 10 years, according to the Commercial Observer. 

Colliers Vice Chair Stephen Rutchik and Vice President Ana Paula worked on behalf of the landlords, Azora Exan, while JLL Executive Vice President Adam Bernstein represented Regus in the transaction. 

Azora Exan acquired the property at 429 Lenox Ave. in 2022 from Goddard Investment Group for $37 million, with the help of a 10-year $19 million permanent loan originated by Abanca Corporacion Bancaria, according to CommercialEdge data. 

WeWork, the building’s previous tenant, closed its flex office location in May. 

Originally designed by Kobi Karp, 429 Lenox was built in 1949 and underwent cosmetic renovations in 2000. The property features a fitness center and a rooftop deck. The five-story office building is divided into three floors of shared workspaces and private offices and two levels of parking. The new coworking location will function under Regus’ SPACES brand. 

Located in Miami’s South Beach neighborhood, the property is just off Florida State Road 907, which connects the office building to downtown Miami, some 6 miles west. Major thoroughfares in the area also include interstates 395, 95 and 195. The flex office is across the street from the Fifth & Alton shopping center, anchored by Target and T.J. Maxx.

Demand for flexible workspaces in Miami Beach continues to rise. The office market remains competitive, with an overall vacancy rate of 8.7 percent in the third quarter, and 340,298 square feet of new construction underway.

The post Regus Inks Full-Building Lease in Miami Beach appeared first on Commercial Property Executive.

Workbox has leased more than 23,000 square feet of office space at One PPG Place Tower in Pittsburgh. Scheduled to open in January 2025, the new coworking location will cover the building’s entire 31st floor.

Highwoods Properties has owned the PPG Place complex since 2011, when it acquired the assets from The Hillman Co., according to CommercialEdge data.

The six Class A buildings came online between 1981 and 1984. Combined, the towers have more than 1.5 million rentable square feet, covering a 5.5-acre site. Amenities include lounges, conference rooms and a tenant-only fitness center. The properties share an underground parking space with 700 spots and eight EV charging stations.

Flex office within the Golden Triangle

One PPG Place is the centerpiece of the office complex, rising 40 stories high. The tenant roster comprises Deloitte, McKinsey & Co., Willis Towers Watson, Insight Global, Morgan Stanley Financial Advisors and Steptoe & Johnson.

The tower is at 1 Third Ave., within downtown Pittsburgh’s Golden Triangle. The property is adjacent to the historic Market Square and across the street from the Red, South Hills Village and Silver light rail lines and several bus stops.

The Workbox Pittsburgh – PPG Place is the company’s first flex office in the state of Pennsylvania and its 11th location nationwide. Six offices are in Chicago, while the other four are in Dallas; Columbus, Ohio; Minneapolis and Salt Lake City.

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Carr Workplaces, a provider of short-term coworking and flex space, has signed a 26,331-square-foot lease with Comstock Holding Cos. in Arlington, Va. The new location is slated to open within The Hartford office building in the spring of 2025.

Comstock acquired The Hartford in 2020 for $128.8 million, with the help of an $87 million acquisition loan from Metropolitan Life Insurance Co., according to CommercialEdge information. 

Built in 2002, the Class A office building totals 211,450 square feet across nine stories. On the ground floor, the property features 20,000 square feet of retail space. The building was awarded LEED Gold certification for existing buildings operations and maintenance in 2012, followed by a recertification in April of this year. Amenities include a subterranean parking garage, bike storage, EV charging stations, a rooftop deck and a fitness center. 

The tenant roster includes Fraym, SQM Frontier Management, SIE Consulting Group, KVS Title, Inspire, Global Telesourcing and Aecom, among others.  

The Hartford is at 3101 Wilson Blvd., within Arlington’s Clarendon area. The office building is surrounded by eateries and retail options, including a Cheesecake Factory and Whole Foods Market. The property is also across the street from several bus stops, as well as the Clarendon metro station, where the Silver and Orange lines connect The Hartford to downtown Arlington in less than 1 mile and to downtown Washington, D.C. in less than 5 miles. 

The post Carr Workplaces Expands DC-Area Footprint appeared first on Commercial Property Executive.

In November, CommercialEdge data provided a snapshot of the nation’s coworking landscape, highlighting the top 10 markets driving the growth of shared office space. These key locations showcased notable variations in footprints, reflecting the evolving demand for flexible work environments across the U.S.

Manhattan led the way, with 11.2 million square feet coworking space spread across 275 locations. This accounted for 2.2 percent of the metro’s total rentable office stock, underscoring the enduring appeal of such spaces in one of the world’s most competitive real estate markets. Similarly, Los Angeles (6.5 million square feet) and Denver (3.7 million square feet) demonstrated robust coworking footprints, each reporting a share of 2.2 percent, slightly above the national average of 1.9 percent.

Chicago, Atlanta and San Francisco followed closely, with coworking locations comprising 2.1 percent of their total rentable space inventory, CommercialEdge data shows. Chicago encompassed 260 locations and 6.8 million square feet of coworking space, while Atlanta’s 242 locations accounted for 4.4 million square feet. As of November, San Francisco had 125 locations offering 3.6 million square feet of coworking space.

Meanwhile, Dallas-Fort Worth had 5.3 million square feet of coworking space, representing 1.8 percent of its rentable office space stock. Boston and Houston rounded out the rankings with coworking pipelines of 4.8 million and 4.5 million square feet, respectively. In both markets, coworking space represented 1.8 percent of the total rentable office inventory.

—Posted on November 27, 2024

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The Malin is planning to open a 32,700-square-foot coworking space in Manhattan’s Flatiron District in the spring of 2025.

The new coworking venue will be within the Equinox building at 895 Broadway, occupying the fourth and fifth floors. The five-story property features a total of 57,050 square feet, according to CommercialEdge information. The Equinox Flatiron fitness club occupies the building’s first three levels.

The Malin Flatiron will feature a 2,700-square-foot mezzanine floor, 20 private offices, 36 dedicated desks, five meeting rooms, 23 phone booths, one library and two kitchens.

Originally completed in 1915, with cosmetic renovations in 1983 and 1993, the historic building last traded in 1996 for $5.8 million. Since 2014, it has been the subject of a 15-year, $65 million loan originated by Sammons Financial Group.

With street exposure on Broadway, the property is within minutes of Madison Square Park, the Flatiron Building and the subway station on 23rd Street. Areas with dense concentration of office buildings, such as Grand Central District, Times Square and Rockefeller Center, are within 3 miles of the property.

The Flatiron District lease marks the company’s fifth coworking location in New York City. The company’s other four venues are in Soho at 32 Mercer St., in West Village at 134 Charles St., in Williamsburg at 109 N. 12th St., while its latest venue The Malin NoMad, opened in partnership with TF Cornerstone, is at 387 Park Ave. S.

The Williamsburg and West Village locations opened simultaneously in 2022, each with 10,000 square feet of flex office spaces. The NoMad space, which opened in March this year, occupies 20,000 square feet across an entire floor.

The post The Malin to Open Midtown Manhattan Coworking Space appeared first on Commercial Property Executive.

Lucid Private Offices has opened a 35,234-square-foot coworking space in Dallas. The company’s new location is spread across two floors at 8080 NCX, a 287,694-square-foot Class A office building owned by Intercontinental Real Estate Corp.

Cresa negotiated on behalf of Lucid Private Offices while Forge Commercial represented the landlord.

Dubbed Lucid Private Offices – NorthPark, the company’s new space is on the 15th and 17th floors of the mid-rise building. The location features 120 private and team offices, floor-to-ceiling glass windows, five conference rooms and a library.

Other tenants at 8080 NCX include Regency Centers Corp., Sequel Holdings and Powell Coleman & Arnold LLP, among others, according to CommercialEdge information.

READ ALSO: Flex Office Is Becoming Synonymous With Office

Intercontinental Real Estate Corp. picked up 8080 NCX in 2016, in a joint venture with Foundry Commercial. Gemini Rosemont sold the asset for $58.4 million. The partnership also took out a $23.6 million acquisition loan held by Principal Financial Group, with a maturity date set for 2026, the same source shows.

The 17-story building came online in 1984 and underwent cosmetic renovations in 1995. The property features ten passenger elevators, 16,900-square-foot floorplates and 1,007 parking spots. Amenities at 8080 NCX include an on-site cafe, fitness center, lounge, 24-hour security and key-card access.

Located at 8080 N. Central Expressway, the property has access to Dallas Love Field Airport. Downtown Dallas is 6 miles away, while Dallas Forth Worth International Airport is 22 miles west.

Principal John Pelletier and Vice President Austin Studebaker with Cresa represented Lucid Private Offices in the leasing negotiations. Forge Commercial’s Co-Founder & Partner Grant Sumner and Partner Taylor Lynch worked on behalf of the ownership.

The runner-up for coworking spaces across the U.S.

The leasing agreement marks the company’s ninth location in Dallas. The deal follows the flex office provider’s recent 3,000-square-foot expansion of its McKinney location at 7300 State Highway 121, where its total footprint reached 30,000 square feet, CommercialEdge also shows.

The total number of coworking spaces in the U.S. rose to 7,538 locations by the end of the third quarter in 2024, a recent CoworkingCafe report shows. This represents a 7.0 percent quarter-over-quarter growth, a positive evolution in line with the coworking industry trends. Of the top 25 leading markets in the country, Dallas-Fort Worth held the runner-up position with 279 flex workspaces, outperforming the long-time national leader Manhattan.

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WeWork has entered into a revenue-sharing agreement under which it will continue to operate on a three-floor coworking space in Boston. The deal is solidifying the company’s long-term stay at State Street Financial Center, a Class A+ office tower in downtown Boston’s Financial District, owned by Fortis Property Group.

WeWork has been incorporating more revenue-sharing deals as alternative leasing agreements in its portfolio. With this strategy, both operators and landlords can share the on-going demand for this type of space, in line with coworking trends.

The company’s total footprint at the property amounts to 64,323 square feet, according to CommercialEdge. Other tenants include CFGI, Stanton Chase, Taylor Hopkinson and Sherin and Lodgen LLP.

READ ALSO: Are Coworking Networks the Future of Office?

The 36-story Street Financial Center came online in 2003 and encompasses 1.1 million square feet of office space and 900 parking spots. The current ownership picked up the property in 2006 for $889 million from American Financial Realty Trust, the same source shows.

Since then, the building became subject to a $1 billion-plus refinancing deal closed in 2022. The proceeds were used for existing debts and provided more than $200 million for capital upgrades such as complete renovations of the lobby, amenity center, food services and reconfigured floorplates, with a focus on wellness and lifestyle spaces.

The skyscraper at 1 Lincoln St. is close to Interstate 93 and South Station. Boston Logan International Airport is 3 miles away, while Cambridge, Mass., is 6 miles northwest.

A surge in coworking spaces

Coworking spaces continue to gain momentum in the U.S., with the total number of locations reaching 7,538 in the third quarter of 2024, a recent CoworkingCafe report shows. Across the 25 leading markets in the country, Boston recorded 4.8 million square feet of shared space in 208 coworking locations, remaining one of the top 10 metros.

With more companies looking into hybrid- and remote-work solutions, WeWork launched Coworking Partner Network, an affiliate program with third-party operators that will allow existing members to access new flex office space in markets across the U.S. and Canada. The network launched last month and secured its first affiliate, Vast Coworking Group, a franchiser which operates more than 190 locations in 31 U.S. states and 10 Canada cities.

The post WeWork Renews Flex Office Space at Boston High-Rise appeared first on Commercial Property Executive.

As the nation’s coworking space demand and supply show no sign of slowing down, the sector is more clearly refining itself. From color schemes and space configurations to food and beverage offerings, business models throughout the sector are beginning to resemble the hospitality and fast-casual dining industries.

Some operators are leaning into this idea, offering different types of spaces under separate, yet consolidated networks and brand offerings, akin to IHG Hotels or Dunkin. In October of last year, CoWorks, a coworking franchiser operating three separate brands, rebranded to become Vast Coworking Group. The franchise operates three distinct brands across more than 190 locations in 31 states and 10 Canadian cities.

And the results speak for themselves. Three of the five largest coworking operators work under a network offering, owned by Switzerland-headquartered International Workplace Group. Combined, they opened 465 new locations globally this year alone. According to Mark Dixon, the company’s CEO, 95 percent of IWG’s global location openings in 2024 were with local property owners and investors.

The consistency and revenue-generating reliability of the coworking networks not only benefit users and brands, but space operators as well. However, making these franchise models work is not without challenges.

A hotel for offices

The two biggest trends motivating the use of a network model are the omnipresence of hybrid work, as well as large companies’ plans to move their employees to flexible spaces. Given the sheer amount of diversity that these changes entail, from corporate satellite offices to suburban hybrid workers looking to break with the 9-to-5 routine, it doesn’t make sense to offer a one-size-fits-all brand offering for coworking spaces.

Christine Wyckoff, head of Americas flexible office services at Cushman & Wakefield, emphasizes that location decisions depend on where the occupiers are actually looking to work. “The hybrid worker has influenced where new coworking locations are opening, as they are choosing to work closer to home to avoid lengthy commutes,” Wyckoff told Commercial Property Executive.

Jason Anderson, president of Vast Coworking, compared this strategy to observations that Marriott and Hilton made with their hotels in the 1980s. “There may be instances where you’re going on a honeymoon and want luxury 5-star experiences, and there are others where you are going on a corporate meeting or you’re a consultant with a place to stay,” Anderson said. “It would not make sense to put a 5-star St. Regis (hotel) in a suburban area where you would put a Courtyard, but that does not mean that Courtyard is any better or worse. It’s a different product for a different crowd.”

For their part, Vast’s offerings include Intelligent Office, which provides a more customizable experience with private offices and conference rooms alongside business services including reception and mail services. These could appeal to companies expanding out of a satellite office. Venture X is the most traditional of the pack, combining a mix of private workspaces and collaboration areas, giving both individual employees and companies some versatility in how they utilize the space. Office Evolution is a mix of the two, offering scalable spaces within suburban locations, a favorite of individual office workers seeking shorter commutes.

READ ALSO: Coworking Spaces Surge Amid Changing Demand

IWG’s Dixon believes that part of this appeal is the result of greater autonomy on the part of employees and their higher-ups, relative to the teams that sign 10-to-15-year leases at downtown office buildings. “The decision about a company’s real estate needs is no longer solely a question for the real estate directors of organizations,” Dixon noted.

Plug-and-play

In addition to the operations element, coworking networks can also streamline the ability to open new locations at scale. Vast and IWG may have the technology, marketing, buying power and employee training to operate across the nation, but it’s the local entrepreneurs who get the businesses off the ground. Opening a new coworking space is just as much, if not more, of an investment for the local operator than it is for the franchiser.

The process is simple. IWG or Vast will research the area demographics, alongside office sector fundamentals such as pricing, rents, demand and occupancy. These determine the right type of space to build, as well as the optimal layouts and service offerings.

The day-to-day operations, management and ownership are left in the hands of the franchisees, who give the spaces the more personal, local feel in their interactions with tenants and customers, event programming and even decorations. Some may have previously been mom-and-pop coworking operators whose spaces could not compete with a network. “They know the building, they know the demand and they may even be clients of their own space,” Anderson said.

At the same time, franchising gives the local operators a leg up in setup, saving them both time and money, minus the risk of employee downturn or competition with other established brands. A franchise fee often covers many startup and employee training costs, while the franchisees will have immediate access to IWG’s or Vast’s space design and software offerings. All that is left to do is work with a landlord and broker for approving the space’s final build-outs. Just this month, a partnership between Vast and WeWork brought WeWork’s booking software to more than 75 Vast locations across 50 markets in the U.S. and Canada.

Compare this with a local operator’s struggles to get off the ground. “You don’t have to start from scratch,” Anderson said. “If you do, you have to build a logo, you have to convince the landlord to work with you when you have never done it before, you have to call all the furniture vendors to figure out which ones are the best, you have to organize the software, you have to build your own website, doing all of this without any accountability.”

All of this occurs while the location is not generating any revenue, while needing to build up a brand name. And this is all below marketing costs. “Our organizations give 2 to 3 percent of their revenue as a marketing fee, but a mom-and-pop may spend up to 20 percent,” Anderson said.

And it’s not even one location that the local operator has to compete with. “We offer greater flexibility and the choice to work where and when they wish, which is in stark contrast to other operators who only have a very small footprint,” Dixon said.

“At an Office Evolution, your key fob should work at the front door of every Office Evolution,” Anderson said. “If you’re a mom-and-pop, how do you compete with Anytime Fitness or Planet Fitness, which allows me to have access to every gym in the entire country at the same price that I could your gym?”

Often, a new Vast location opening is the result of a previous closure and sale.

Too good to be true?

In assuming much of the responsibility for operating a coworking space, franchisees often also take on much of the risk. While Spaces or HQ attach their brand name to a property, it’s up to the local operators to ensure that the location is consistently occupied.

But Anderson sees this as a net benefit, as a franchisee has a far deeper personal interest in a location’s success than employees of, say, a REIT. “A general rule of thumb in franchising is, who is going to do a better job, an employee or a franchisee?” he asked. “The franchisee who is pulling money out of their 401k or investing in a small business loan; they’re going to work very diligently to make sure that that location is successful.”

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As more companies adopt remote and hybrid models, coworking spaces are becoming more popular and easier to access, spreading across both downtown areas and suburban locations.

By the end of the third quarter, the coworking sector inventory reached 7,538 spaces nationwide, accounting for a 7 percent increase quarter-over-quarter. Growth was largely driven by major metropolitan statistical areas. Of the 25 leading markets surveyed by CoworkingCafe, all but two—the Bay Area and Salt Lake City—reported gains in coworking spaces.

READ ALSO: Coworking Trends to Keep an Eye On in 2024

Notably, Nashville, Tenn., led with a significant 24 percent increase in coworking supply on a quarter-over-quarter basis, adding 22 new spaces to its total, while Indianapolis saw a 12 percent rise. Philadelphia came in third with a 9 percent increase, or 23 new spaces. On the other hand, Brooklyn was the only market to record a decrease, its inventory shrinking by 3 percent, or by two spaces.

In the third quarter of 2024, Los Angeles, Dallas-Fort Worth and Manhattan retained their spots as the top three markets in the coworking industry, CoworkingCafe noted. Los Angeles leads with 292 spaces after adding 13, while Dallas-Fort Worth holds the second place with 279 spaces after a 3 percent increase. Manhattan ranks third with 275 spots, adding 11 spaces.

Coworking space in the U.S. grew by 5 percent in the last quarter, adding nearly 5 million square feet and totaling 133.5 million as of October. Nashville led with a 13 percent increase in square footage and San Francisco followed with a 12 percent rise. However, five markets saw declines, including Brooklyn (-17 percent) and Manhattan (-6 percent). Austin (-4 percent), Denver (-3 percent) and Dallas-Fort Worth (-2 percent) also posted declines.

While the overall coworking square footage in the U.S. increased, the average size of individual spaces decreased by 2 percent to 17.7 million square feet, reflecting a trend toward smaller, community-focused environments. Manhattan (40,597 square feet), San Francisco (29,397 square feet) and Chicago (26,068 square feet) hosted the largest spaces.

Stable prices with regional variations

According to CoworkingCafe, coworking membership rates remained stable overall during the third quarter of the year, with only slight fluctuations in specific markets. Dedicated desks held steady at a national median of $300 per month, while virtual offices saw a modest $1 increase to $120. The price for open workspaces also rose by $1, reaching $150 per month.

Washington, D.C., remained the most affordable market for virtual offices, offering rates as low as $80 per month. Denver and Brooklyn were the only markets with virtual office rates under $100, both priced at $99. Meanwhile, New Jersey and Chicago were the most expensive, commanding rates of $210 and $205, respectively. The largest price hikes last quarter were in Atlanta, up $32 to $179, and Chicago, rising $16 to $205 per month.

Indianapolis offers the most affordable dedicated desks at $209 per month, below the national median of $300. Other affordable markets include Raleigh-Durham, N.C., and Salt Lake City. In contrast, Manhattan charges $510, the highest rate. Price drops occurred in Manhattan and Atlanta, while L.A., D.C., and Boston saw slight price increases.

The coworking sector has also completed another step in its evolution, the report noted. As growth continues, existing brands are looking to reinforce their position and growth potential, by establishing partnerships. The recent announcement of VAST Coworking, an entity resulted from the association of Office Evolution, Venture X and Intelligent Office, is an illustration of that trend. The venture now features 174 locations across the country, pointing to the emergence of coworking as a mainstay for the industry.

Read the full CoworkingCafe report.

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Roughly six months after emerging from bankruptcy, WeWork has announced the launch of its Coworking Partner Network, an affiliate program with third-party operators that will allow existing users to access new spaces in markets across the U.S. and Canada.

The linchpin of the network is a partnership with Vast Coworking Group, a franchiser that operates more than 190 locations across 31 states and 10 Canadian cities. Vast’s existing franchisees, operated under brand names Venture X, Office Evolution and Intelligent Office, will be available through the network to be managed under Yardi’s Kube coworking software.

Additionally, users of WeWork Workplace, the company’s proprietary space management software, will gain access to 75 Vast locations across 50 markets in the U.S. and Canada through the app. WeWork intends on expanding the network across more markets in the future.

In April of this year, Yardi assumed a 60 percent ownership stake in WeWork after the company contributed $337 million of a needed $450 million bankruptcy exit. WeWork emerged from bankruptcy the following month, shedding 170 locations. The company’s current offerings total 600 locations across 37 countries.

Powering the partnership

The Coworking Partner Network is the result of observing trends from both the office and larger coworking sectors, as well as an asset-light approach to operating the spaces, according to Will Sandford, Yardi’s director of coworking. One key motivator was corporate entities in need of flexible space who may not be as concerned with brand preferences as individual users. “(They) expect a large network of high-quality space and are more brand-agnostic than retail customers,” Sandford told Commercial Property Executive.

A WeWork spokesperson pointed to data from a recent user survey showing that of the 72 percent of companies planning to expand their office footprints in the next two years, 59 percent intend to do so through a coworking space.

READ ALSO: Flex Office Is Becoming Synonymous With Office, Says Workbox CEO

Sandford believes that partnerships resembling the Coworking Partner Network allow operators to more seamlessly integrate their spaces into office buildings than the more traditional models used in the 2010s. “The lease arbitrage coworking model of the 2010s is not feasible at scale,” Sandford said.

Conditions like revenue sharing agreements and internal management really drive the partnerships home, in Sandford’s view: “These expansion models will better align the coworking operator with the building owner and provide customers with more location options.”

In addition to the franchising and management structure, WeWork was also attracted to Vast’s suburban spaces, which complement the company’s more urban-centric approach. This year alone, the U.S. added roughly 9 million square feet of suburban coworking space to its existing stock, according to CommercialEdge data.

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The Malin has opened a 12,000-square-foot flex office location in Austin, Texas. The company’s new coworking space is at 1515 E. Cesar Chavez St. Pennybacker Capital is the developer and owner of the recently completed 71,623-square-foot office building, according to CommercialEdge information.

This is The Malin’s sixth location in the country and its first in Texas. The new space will include 24 dedicated desks, 10 private offices, four meeting rooms, two libraries and 12 phone booths. Membership access for the location includes three levels and day passes.

The Malin will also provide multiple services for its members, focused on ensuring a creative work environment, such as catered lunch, baked goods, coffee orders, fresh floral arrangements and access to an Executive Assistant program and concierge services.

Completed last year, the three-story, Class A creative office property includes 9,196 square feet of retail space and 187 vehicle parking spots. The building features floor-to-ceiling glass, a three-story green wall, private terraces, showers and bike storage spaces. In 2021, Pennybacker Capital secured a $28.2 million construction loan provided by First United Bank and Trust Co., CommercialEdge shows.

The Malin expanding its footprint

The building is close to downtown Austin, which allows access to multiple dining and retail options, as well as to bus stations and to Interstate 35. Austin-Bergstrom International Airport is 10 miles away.

In July, The Malin expanded its footprint with a 10,000-square-foot space in Savannah, Ga., that will open in 2025. The company partnered with Ann Street Lofts and the deal marked its first single-use building in its portfolio.

In March, the company announced its plans to open a 20,000-square-foot location dubbed The Malin NoMad, occupying the entire fifth floor of 387 Park Ave. S. in Manhattan, its fourth coworking space in New York City. The new coworking space will be available this month at TF Cornerstone’s 12-story, 232,000-square-foot property.

The post The Malin Enters Austin With 12 KSF Coworking Space appeared first on Commercial Property Executive.

TailoredSpace has opened a nearly 12,000-square-foot flex office location in the Orange County, Calif. area at Laguna Design Center, a 280,979-square-foot retail campus in Laguna Niguel, Calif. This marks the flex office provider’s ninth coworking location in the country.

The firm will occupy the building’s entire first floor, which features 41 fully furnished private offices, phone rooms, conference rooms and business support services.

TailoredSpace partnered with landlord Dunhill Partners, which acquired the retail campus in 2016 for $46.3 million, according to CommercialEdge. The seven-building retail center came online in 1985 and includes 40 showrooms. Notable tenants at Laguna Design Center include Plumeria Cafe, Bassman Blaine and Exquisite Surfaces, among others.

READ ALSO: Managing Coworking: Building Brands, Building Experiences

The company is also the owner of The Shoppes at Chino Hills, a 377,966-square-foot retail complex that hosts the largest TailoredSpace location.

Looking to expand in California

Located at 23807 Aliso Creek Road, the 12-acre property is close to multiple bus stops and allows easy access to Interstate 5 and State Highway 73. Additionally, Laguna Design Center is 14 miles from Newport Beach, Calif., and 16 miles from John Wayne Airport.

The company’s coworking portfolio currently has an average occupancy of 93 percent, with clients working in the financial services, technology, real estate and legal fields, said Co-Founder Drew Sanden in prepared remarks. The firm’s expansion plan will include future locations in Los Angeles, San Diego and Orange counties.

In August, the company’s sister brand, SimplerSpace, marked its third coworking location by opening a new space at Chino Corporate Center, a 58,573-square-foot office building in Chino, Calif. The 13,500-square-foot location is across the property’s entire fourth floor and provides 50 private offices and suites.

The post TailoredSpace Opens 9th Coworking Location appeared first on Commercial Property Executive.

The Shop Workspace will open a new 12,000-square-foot flex office location in Brooklyn, N.Y., at 420 Carroll, a 380,071-square-foot mixed-use development in the Gowanus neighborhood.

The new space will open in early 2025 on the building’s second floor and marks the flex office provider’s third location nationwide. The other two are in Salt Lake City and New Orleans.

The Domain Cos. is the landlord and developer of the $300 million project, which includes a 21-story mixed tower and an adjacent 16-story building. The company broke ground in May 2022, with move-ins expected to begin this fall. The development will also feature 27,000 square feet of retail space. The 360-unit residential project is backed by a $158 million construction loan, originated by Bank OZK, according to CommercialEdge.

READ ALSO: Managing Coworking: Building Brands, Building Experiences

The development team includes FXCollaborative, Alan Mainer Studios as interior designer and the landlord’s affiliate, Good Co., as the broker in charge of residential leasing. The project is expected to reach completion this year.

Coworking opportunities

The Shop Workspace’s upcoming coworking location will include shared common areas, phone booths, a staffed reception space, pet-friendly offices, meeting spaces, conference rooms, mail and business services and an office kitchen, among others.

Preleasing is already underway, with monthly memberships available for part-time and full-time common spaces, private offices, creative studios, day or shared passes or hybrid solutions for future members.

In partnership with Arts Gowanus, The Shop will provide seven studios which will be awarded to local artists through a lottery system, while six Gowanus Mix studios will be available for local businesses at a reduced cost. The collaboration is made possible by the Gowanus Mix zoning and will involve year-long agreements.

The mixed-use project will be close to the Union Street R subway station and within walking distance to downtown Brooklyn. Midtown Manhattan is 6 miles away.

Flex office providers expand in NYC

As of April, Manhattan’s coworking sector totaled nearly 9.5 million square feet, representing 2.5 percent of total leasable office space, the largest out of all gateway markets, according to a CommercialEdge market update. The biggest coworking provider in the borough was WeWork, with operations totaling 4.9 million square feet. Industrious was the second-largest one, with an 875,000-square-foot footprint. The company extended and expanded its lease at 860 Broadway, bringing its footprint at the historic six-story property to 27,630 square feet.

Other deals include Convene’s 22,519-square-foot expansion at Stawski Partners’ 360 Madison Ave., in Midtown Manhattan. The lease brought the company’s footprint to 68,000 square feet at the property.

Back in March, The Malin signed a 20,000-square-foot deal at TF Cornerstone’s 387 Park Ave. S. The new coworking space, dubbed The Malin NoMad, marked the company’s fourth location in New York City.

The post The Shop Workspace to Open Coworking Location in Brooklyn appeared first on Commercial Property Executive.

Since its inception in 2019, flexible workspace provider Workbox has been growing fast using a model inspired by the hotel industry. Most recently, the company secured $17.5 million in funding, with an additional $5.5 million available through a follow-up option, to accelerate its expansion. Workbox currently operates 10 locations across five cities, but the company aims to double its footprint to 20-25 locations in 10 to 12 cities within the next two years.

“We are more urban-focused than our peers and are primarily focused on gateway cities on the coasts as well as a few high-growth regional cities where there is outsized new company formation and early-stage capital availability,” John Wallace, the firm’s co-founder & CEO, told Commercial Property Executive.

In this interview, Wallace delves into Workbox’ growth strategy and product offerings, sharing his insights on how to navigate this rapidly evolving market and prepare for the future of flexible working.

READ ALSO: Here’s a Surprising Shift in Remote Work’s Appeal

What’s your view on the current state of the flexible office sector?

Wallace: Flexible demand continues to accelerate in this new world of hybrid work. Employees are more distributed around the country and dual-income households are pushing employers to provide more flexibility around the typical 9-to-5 schedule. Hybrid work is also aiding in real productivity advantages, wider talent pools and retention gains.

Very few sectors are having success with completely remote work. Ultimately, employees and employers benefit from in-person connection through more meaningful identification with their companies and colleagues, quicker training ramp-ups and better career advancement through in-person engagement. The net impact is less conventional office square footage and increased flex space allocations from corporate occupiers.

Besides the shift to hybrid work models, what other key factors are driving the growth of the flexible office sector? How are you capitalizing on those trends?

Wallace: The future of office is flexible. Office vacancies are rising and office owners are not structured to handle these shifts in occupier behavior. Owners are heavily dependent on commercial brokers to find space. Commercial brokers, however, are not incentivized to find short-term space, so more alignment will happen between coworking operators and office owners.

We’ve been executing shared economic arrangements since our inception and are structuring deals that are a win-win for owners and operators in the same manner done in the hotel sector for decades. 

Can you expand on this approach and the hurdles you need to overcome to expand it?

Wallace: Increasingly, I think owners and operators are becoming aware of their strengths and weaknesses. The office market is going through a major shift in how deals are done, and forward-thinking owners are getting ahead of these trends instead of hoping that prepandemic leasing practices will return. I believe we’ve reached a point where most—if not all owners if they’re being honest—understand that flex office is becoming synonymous with office.

The biggest hurdle to the mass adoption of our model in the commercial office sector is standardizing revenue reporting and providing historical performance data to give lenders and investors something to value. I’m on a subcommittee with the ULI to help see that this hurdle is overcome because, in my view, this is the last obstacle to truly institutionalizing the coworking industry.

READ ALSO: Managing Coworking: Building Brands, Building Experiences

Workbox recently announced new locations in Chicago and Dallas. How do you differentiate yourself from your competitors in such large markets? 

Wallace: Office owners need to evolve to avoid becoming obsolete. I think this also holds for coworking operators. Coworking has, for the most part, gone after all potential users which has led to a deterioration in services across the different customer segments.

On the other hand, the hotel industry has grown over time through better segmentation. The hotel sector has all different kinds of segments: luxury, resort, extended stay, suburb, urban etc., and we think that customer profiling needs to be better in coworking as well. Since our beginning, we have chosen to focus on small, early and growth-stage businesses which has allowed us to maintain our focus from a programming and services offering—accelerator and venture fund.

Additionally, we are very deliberate in the markets we look to expand into, avoiding making poor site selection and market decisions. We strongly believe that you can’t be everything to everyone, successfully. 

Half of your flexible offices are in Chicago. How would you describe the market there and what are the particularities that make it attractive?

Wallace: We were born and raised in Chicago, so we know a lot about the market drivers here and have very strong connections throughout the city. We like Chicago because of its industry diversification, its population size and its residential density. There are economies of scale in large cities both operationally as well as from a brand awareness standpoint, and we’re seeing that in Chicago where we have some very real competitive advantages. 

As we grow, we want to replicate that in other gateway markets. This takes time, however, so our expansion plans currently contain a mix of about half of the new markets where we can get scale and infill locations where we are gaining operational/brand economies of scale.

READ ALSO: 9 New Rules of Coworking

Tell us more about the range of workspace solutions that Workbox provides and the amenities that support a productive working environment.

Wallace: We have three products that are all focused on our target customer demographic of small and early-stage businesses: workspace (office, desk, floating and events), accelerator (future of work companies) and venture (investing in future of work companies). Our goal is to be the best operator in the country for creating connectivity both at the local level and through our national network via programming.

What impact do programming and networking events have on users’ workspace experience and their businesses?

Wallace: Everything we do and the programming we offer pretty much revolves around building a business, and we hope creating that mindset will fuel better connectivity across our member communities. Our mission of our members’ success really can be boiled down to facilitating better connections between like-minded business builders. 

You could think about our programming as an icebreaker or a way for one of our members to get their foot in the door, but some members might be too busy or not interested in a more specific topic, so all we’re just trying to do is to build a mentality of collaboration. Members can get as much out of our network as they want to. We have over 80 vetted capital and operational services partners but, again, the goal is to facilitate connections with each other.

The post Flex Office Is Becoming Synonymous With Office, Says Workbox CEO appeared first on Commercial Property Executive.

Expansive will open a new flexible workspace location in Chicago at Two Pru, a nearly 1.1 million-square-foot Class A office tower. The company’s expansion will come to fruition through a partnership with Wanxiang Real Estate Group and Riverside Investments.

This is Expansive’s seventh location in the metro. The flex office provider will occupy the building’s 35th floor, previously leased by Regus.

Expansive’s new location is currently under renovation, plans calling for private offices, on-demand meeting rooms, coworking spaces and day offices. Upgrades are slated for completion this month, with an official opening ceremony scheduled for October.

READ ALSO: Managing Coworking: Building Brands, Building Experiences  

Two Pru is part of The Pru, the 2.3 million-square-foot office complex formerly known as Prudential Plaza. Notable tenants at the property include Amsted Industries Inc., Presidio Aircraft Leasing, The Chicago Council on Global Affairs, Eckenhoff Saunders Architects, Envisionit and The Terry Group, according to CommercialEdge.

A closer look at One and Two Pru

Wanxiang Real Estate Group has been the majority owner of The Pru since 2018, when it purchased the majority stake in the property for $680 million, the same source shows. The company owns the asset together with Sterling Bay, which retained a minority stake.

At the time of the sale, the two-building asset became subject to a $389 million loan provided by CW Capital, with a maturity date set for 2027 and a two-year extension option. The ownership is currently investing $50 million in upgrades, with a focus on tenant amenities, The Real Deal reported.

One Pru, at 130 E. Randolph St., comprises 1.3 million square feet across 41 stories. Completed in 1955 and renovated in 2014, the high-rise features 30 passenger elevators, floorplates ranging between 22,000 and 70,000 square feet and 336 parking spots.

Two Pru rises 58 stories at 180 N. Stetson Ave. The 1.1 million-square-foot property came online in 1990 and features 21,000-square-foot floorplates, 30 passenger elevators and 608 parking spots.

The amenity package includes a 7,000-square-foot rooftop terrace with lounge spaces, 23,000-square-foot tenant lounge, fitness center, space for nursing parents and a public park with outdoor seats. The amenities at One and Two Pru are currently undergoing multiple upgrades, which will include the addition of golf simulators, an entertainment area, a 22,000-square-foot conference center, an extended tenant lounge and rooftop terrace.

The Pru is at the edge of Grant Park, in the city’s central business district, close to multiple train and bus stations. The Chicago Midway International Airport and Chicago O’Hare International Airport are 12 and 18 miles away, respectively.

The post Expansive to Open 7th Chicago Coworking Location appeared first on Commercial Property Executive.

What started in 2021 as a members-only club has now grown into a network of flexible workspaces that aim to challenge traditional office settings. The Malin’s approach centers around the power of design, combining luxury fabrics with handcrafted furniture to create hubs that provide experiences tailored to their surroundings.

Founded in New York City’s SoHo neighborhood, the flex workspace operator has steadily expanded its portfolio to eight locations across four states. Most of them are in historical buildings, on iconic streets or in popular neighborhoods. This type of spaces appeal to modern workers who want flexible, productive and creative work environments in the most sought-after parts of cities.

In this interview with Commercial Property Executive, The Malin Founder & CEO Ciarán McGuigan explores how a growing emphasis on both design and community building is shaping the future of flexible workspaces.

READ ALSO: When Coworking Meets Hospitality: A New Jersey Success Story

What makes you different? What elements have you introduced at your locations to set yourself apart from competition?

McGuigan: We are a hospitality brand first and foremost. Members have access to our onsite team that performs complimentary concierge and administrative services at each location. We have a reputation for remembering names, coffee orders and helping our members accomplish their best work. In addition, we pride ourselves on offering a strong balance of form and function. We design and manufacture our furnishings inhouse and our workspaces are known to be remarkably quiet.

With design at the forefront of your strategy, what are some trends in workspace design, especially when it comes to supporting productivity and well-being in the office?

McGuigan: There has been an injection of residential tropes into workspace furnishings over the past decade, which does not seem to be slowing down, mirroring the progressive informality of office culture. We make a point to balance this with structured seating—like private desks, communal work seating and conference tables with built-in power.

As hybrid work became more prevalent, both pre- and postpandemic, we’ve seen a rise in flexible workspace design—providing adaptive spaces and offering a range of environments that support different work models. Lastly, aesthetics are more important than ever and to be a competitive employer, providing an environment that inspires can give businesses the edge.

Tell us more about your design process for your locations.

McGuigan: There is a unifying design aesthetic across all of our workspaces but we individualize each by drawing inspiration from the architecture of the site and its local community. With our newest Nashville, Tenn., location in South Gulch, for example, the design is partly informed by the vibrant, creative and musical scene in the city, exhibited through graphic patterns and bold colors throughout. Each Malin provides the escape one feels from settling into a beautiful lobby at a boutique hotel but does not sacrifice the essential qualities that support work.

READ ALSO: Trends in Remote Work

What are some amenities available at your flexible workspaces?

McGuigan: We offer an executive assistant service, which manages day-to-day factors that may be distractions during a typical workday, like dry cleaning and travel coordination, as well as basic administrative needs, like mailings and note-taking.

We have a high demand from members and nonmembers alike who are seeking impressive and high-tech spaces to anchor both internal and external meetings. Lastly, each venue has at least one library and a silent space for work, but we also offer banquets that engender collaboration and synchronistic dialogues. There is something for everyone.

How do you ensure that each Malin location maintains its unique character while adhering to the brand’s overall design philosophy? How do you achieve balance?

McGuigan: There are core design tenets that unite each club, like custom oak millwork, crystal desk dividers and plush warm furnishings. We want to uplift our members’ spirits when they come to The Malin, a workplace that feels like a retreat. Our model allows for a wide variation in the types of spaces we consider—both ground-up builds in emerging neighborhoods, as well as historic structures in established districts. With that comes the opportunity to tailor our design to the needs of the building and community. Through this process, each venue in our network takes on its own personality. Everything we do is custom, which provides us with incredible freedom.

How do you select new locations for The Malin?

McGuigan: In the development of new sites, we seek out the most desirable neighborhoods and buildings, in what we see are the most exciting cities in the U.S. Our brand is a neighborhood amenity, servicing the local community. With that, we can ‘placemake’ or revitalize within those given markets, so new locations respond to those distinct opportunities.

Do you have any initiatives or programs aimed at community building?

McGuigan: Rather than contriving programs to create a template for community building, The Malin is showing up for members on their terms. Our members are like-minded businesspeople looking for a common space to do their best work. Over time, this has built an organic and authentic professional network that mostly fosters community.

READ ALSO: Where Branding, Franchising Meet in Coworking

Tell us more about the type of tenants that choose your flexible workspaces.

McGuigan: The Malin members are leaders and decision-makers across industries on a local and international scale. Since our model offers flexibility that can cater to all different career paths, our non-vetted member base represents a varied group of professions. Our members range from individual workers and small teams to larger companies. We’re the workspace for everyone, from consultants and advising services, specialized creatives and designers, to VC firms and tech startups.

Are you targeting any new markets to expand your footprint?

McGuigan: We’re constantly evaluating new markets for The Malin, both nationally and globally, and especially in secondary cities. We recognize there is a huge gap for premium workspaces outside of the major hubs, and so we want to continue bringing our brand to burgeoning neighborhoods where we can best support small and growing businesses by providing an aspirational environment for them to do their very best work.

The post The Malin’s Design-Centric Approach to Flexible Workspaces appeared first on Commercial Property Executive.

Coworking is having a good year. Once a mere subset of office, the sector numbers more than 7,000 locations in the U.S. and increased 7 percent last quarter alone, according to a recent update from CoworkingCafe.

However, simply building out coworking suites, whether inside skyscrapers or old warehouses, will not automatically fill them up. The management strategy needs to account for the many types of coworking office workers, their specific wants and needs, as well as the importance of location, be it a WeWork in Manhattan or a Regus in Tulsa.

Meeting in the middle

Will Sandford, Yardi director of coworking, sees a distinct identity emerging from the ubiquity of hybrid work and the office being optional as a baseline for curating today’s coworking spaces.

“When coworking launched, it was very much an alternative to homes and cafes,” something exemplified by the nation now having “a more transient workforce than ever before,” Sandford told Commercial Property Executive.

READ ALSO: As Office Pipeline Shrinks, Existing Class A Buildings Should Benefit

So what makes up this transient workforce? In Sandford’s observations, these users vary widely, ranging from a visitor to a town needing a single day to companies allocating space for an A-team or a test space for a satellite office expansion.

As for location, operating spaces in the suburbs and smaller cities can prove a winning strategy now, seeing as the outskirts recorded an expansion of nearly 9 million square feet nationwide in the past year, according to CommercialEdge data.

“Folks working in Manhattan are now working out of Bozeman, Mont.; Charleston, S.C.; or Greenville, S.C.,” pointed out Chris Smith, chief revenue officer at THRIVE | Coworking, a firm whose footprint is focused around suburban markets in the South and Midwest.

Still, they all operate with a similar mindset; “This mass migration took place, and now, after people started working in their homes, (they) became lonely, they need human interaction and that’s what we provide,” Smith said.

As such, coworking spaces don’t only compete with each other but with the living room, as well.

The hotels of the office sector

When it comes to design, programming and amenities, the prevailing mindset is closer to hotels than office buildings. The often-shorter stays, diverse array of users and more streamlined working experiences, in contrast to single-tenant suites, give users a certain brand-based expectation. Think of Workbox and Quest Workspaces as more like Hilton vs. Marriott than JLL vs. Colliers.  

“As we have more people coming into the market and (putting) demand on capacity, they will start to create favorites, and those favorites will start to align with the original communities that would build for the permanent members in those spaces,” Sandford observed. As with a hotel, a positive experience with the spaces and staff can create a certain degree of brand loyalty.

To earn this loyalty, coworking property managers should seek to include a consistent array of on-site activities, events, and food and beverage offerings, akin to a hotel brand providing similar amenities at all locations. This contributes to the more intangible elements of the experience, such as the ability to communicate and collaborate with other users, that helps brands truly stand out. THRIVE | Coworking locations, for example, offer unlimited coffee and snacks for members.

“(It) creates that water cooler talk opportunity to just really get to know and collaborate,” Smith said. “Generally, the value that people find is they end up working with other members in our space. You need some legal work done? Yeah, we have a law firm down the line, with John that you just shared breakfast with the other day.”

For John Arenas, CEO of Serendipity Labs, the intangible upsides, namely the level of customer service, alongside the community element, help a brand stand apart as much as the amount of natural light.

“You can manage a location, but if you can’t generate demand and find new customers, then you are really not a brand, and the brands attract customers,” Arenas pointed out.

As for actual work experience, a versatility of space arrangements is key. Evan Fain, general manager at Industrious, underscored the importance of having the right ratio of individual and shared workspaces, alongside spaces to focus on either heads-down or creative work. Industrious both operates coworking spaces nationwide and manages tenant experience programs for office investors.

In fact, using booking software, coworking operators can measure how a given space arrangement, strategy or amenity offering is performing in real time, across a portfolio. “When we think about the operations of our space, we focus on it as a hospitality business; we are data- and metrics-driven about how we drive toward the customer experience,” Fain detailed.

Customer service: A host of challenges

As with hotels, coworking operators can have the best-curated and amenity-driven locations, but it means nothing without attentive and responsive on-site staff. Fain’s firm, for instance, operates with more than 100 different hospitality standards in place, and consistently monitors real-time foot traffic and event attendance from its booking software.

Here, ease of access is paramount, with the selling point of most coworking spaces being that they are essentially offices imagined as a commodity, or often an amenity of office buildings in their own right.

“(Tenants) don’t need to worry about really anything except for having access to the building,” Smith said. Secure, reliable internet, fast work order fulfillment and immediately implementing feedback into operations are a must, as users can simply pack up and go to a new space, rather than break a lease. Or just work remotely.

Customer service can also often involve more mundane elements of traditional property management, some of which are exacerbated by the fact that each individual space is often occupied by many different users. “(This) means that you have not just a single person as a receptionist out front checking people in but a team that is ensuring that experience across all those dimensions of safety and security compliance,” Arenas added. “That’s everything from member experience management checking and using the facilities—whether it’s meeting rooms, (the) booking system or booking tools for using the resources to access control—to check-in security.”

Meanwhile, operators and the owners they serve still have traditional office challenges. While most of the space’s revenue comes from short-term uses, many spaces are located inside larger office buildings and are subject to long-term leases.

“When you sign a long-term lease but you have short-term membership agreements, your revenue is short term. It tends to break over business cycles,” Arenas said.

In the end, it’s far more than enforcing a lease or conducting inspections. “This isn’t just pretty office space with friendly faces greeting you—it’s actually an outsourced workplace,” he concluded.

The post Managing Coworking: Building Brands, Building Experiences   appeared first on Commercial Property Executive.

Palmetto Central includes a five-story, 63,496-square-foot building at 1489 W. Palmetto Park Road and a four-story, 84,131-square-foot second building at 1499 W. Palmetto Park Road. Venture X will open a new coworking location by fully occupying the top floor at the office complex’s second building.

Notable tenants at Palmetto Central include Gilbane Building Co., Khospace, Rebound Finance, Platinum Choice Healthcare, Zenith Financial Network and the corporate headquarters of landlord Grover Corlew, according to CommercialEdge.

READ ALSO: Flight-to-Quality Is Leading the Flex Office Evolution

The two office buildings came online in 1979 and 1992, include two passenger elevators each and offer a total of 337 vehicle parking spots. Additional features include floor-to-ceiling windows, full-height hurricane impact windows, custom buildouts and amenities such as a tenant lounge, conference room and fitness center.

An ongoing $30 million redevelopment program at both buildings started by the ownership will include an upgraded lobby and common-area amenities, renovated facades, as well as new core mechanical systems.

Colliers Executive Vice President Derek Baker negotiated on behalf of the flex office provider. CBRE’s team of First Vice President Joe Freitas, Executive Vice President John Criddle and Senior Associate Max Pawk worked on behalf of the landlord, Grover Corlew.

Miami’s coworking sector

The 5-acre office campus offers immediate access to Interstate 95. The property is 4 miles from downtown Boca Raton, 10 miles from Pompano Beach, Fla., and 19 miles from Fort Lauderdale, Fla.

Miami had 1.6 million square feet of coworking space as of March, representing 3.7 percent of total leasable office space in the metro, one of the highest rates across peer markets.

Last month, Quest Workspaces opened its second location in the metro by signing a 23,454-square-foot leasing agreement in Doral, Fla. The company is fully occupying the seventh floor at Doral Center, a 290,157-square-foot office building.

The post Venture X Adds 29 KSF in Boca Raton appeared first on Commercial Property Executive.

SimplerSpace has opened its third coworking location. The 13,500-square-foot space is at Chino Corporate Center, a 58,573-square-foot office building in Chino, Calif. The flex office provider also operates in Carlsbad, Calif., and Placentia, Calif.

The owner of the four-story, Class A office asset is Foothill Accountable Care Medical Group. The firm picked up the property in 2022 for $15.1 million from The Fulcrum Group, according to CommercialEdge information.

SimplerSpace occupies the property’s entire fourth floor, providing 50 offices and suites. The firm teamed up with building manager Map Realty Group and contractor Dutchmen Construction to guide the space improvement process. Upgrades included the addition of common areas and lobbies upgrades, as well as new flooring, additional conference rooms and the expansion of the break room and lobby spaces.

READ ALSO: As Office Pipeline Shrinks, Existing Class A Buildings Should Benefit

Located at 14726 Ramona Ave., Chino Corporate Center is LEED Gold-certified. Completed in 1991 and renovated in 2015, the office building also features solar energy services, 24-hour card key access and signage options.

Other tenants include Transamerica Financial Advisors, King Realty Group, Coastal Vision Medical Group, InsurTech Insurance Solutions and EJD Engineering Inc., the same source shows.

The approximately 3-acre property is close to Chino Airport, 12 miles from Ontario International Airport, and within 35 miles of downtown Los Angeles.

The coworking sector grows over the quarter

In the first quarter of 2024 there was a 6 percent increase in the national coworking supply, followed by another 7 percent growth in the second quarter, representing 444 more locations throughout the U.S., a recent CoworkingCafe report shows.

Los Angeles secured the top spot across the top 25 markets in the U.S. for inventory growth, with 279 coworking spaces so far. The metro outpaced Dallas-Fort Worth (271 spaces) and Manhattan (264 spaces), the national leader until the end of 2023.

In one of the more recent Los Angeles coworking deals, Industrious expanded its footprint with a 19,000-square-foot lease at the North Tower of Watt Plaza, a 476,120-square-foot office building in Century City, Calif. The tenant entered into a 10-year agreement for a full floor with landlord Watt Cos.

The post SimplerSpace Opens 3rd Coworking Location appeared first on Commercial Property Executive.

Pacific Workplaces will soon open a new coworking location totaling 12,965 square feet in downtown San Jose, Calif. The flexible office provider leased the space at Pestana Properties’ 84 W. Santa Clara St., a 110,000-square-foot, eight-story office building.

Pacific Workplaces’ new location includes 51 private offices, flex desks, dedicated workstations, virtual offices and six fully equipped meeting rooms designed by Workplace Studio.

The new coworking location is scheduled to be completed by the end of this September. The deal marks Pacific Workplaces’ second location in the Silicon Valley area. In late 2023, the company secured a 14,928-square-foot new location in Cupertino, Calif., while also relocating within the same city.

Other tenants leasing space at the office property include Innovar Marketing, Green Bay Construction Co., TMC Financing and HGA Architects and Engineers, among others, according to CommercialEdge. The same source shows that a Cushman & Wakefield team is the assigned leasing broker for the office building, led by Executive Director Bob Simpson and Director Rob Souza.

The eight-story property dates back to 1976 and features 13,338-square-foot floor plates, three passenger elevators, 12,000 square feet of retail space and 49 parking spots. The ownership completed a multi-year improvement strategy, resulting in hospitality-infused amenities and finishes, such as a conference center, a fitness center, a tenant lounge, secured underground parking spaces and easy access to nearby parking structures.

Coworking deals in the area

84 W. Santa Clara St. is close to multiple bus stops and to San Pedro Square, being 4 miles from San Jose Mineta International Airport, 13 miles from Saratoga, Calif., 34 miles from San Francisco International Airport and within 48 miles of downtown San Francisco.

Recent flexible workplace providers that expanded with new locations in California includes Industrious, that signed a 19,000-square-foot lease in Century City, Calif. The company’s 10-year deal is at Watt Cos.’ North Tower of Watt Plaza, a 476,120-square-foot office building rising 23 stories. In the same period, the flex office provider also opened another location at Westwood Center, a 333,830-square-foot property in Westwood, Calif.

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The Malin has entered a new market with a 10,000-square-foot boutique flexible office location in Savannah, Ga. The company partnered with Ann Street Lofts to occupy the entire space, marking its first single-use building in its portfolio.

Scheduled to open in the winter of 2025, The Malin Savannah will comprise 30 dedicated desks, seven private offices, 12 soundproof phone booths, a library and two kitchens. The tenants will also have access to four meeting rooms, as well as amenities such as private event booking, locally roasted coffee and complimentary printing, telling of the flight-to-quality trend in flex office spaces.

Located at 119 Martin Luther King Jr. Blvd., the space is also close to The Grey, James Beard’s Award-winning restaurant, multiple cultural spaces, including museums and several entertainment and dining options less than 1 mile from the flexible office location. Similar to The Malin’s other spaces, the new location is within the city’s Historic District, known for its 18th and 19th-century architecture.

The design-centric space will bring The Malin’s members-only boutique coworking portfolio to eight locations across New York City, Nashville and Texas. In March, the company unveiled plans for its 20,000-square-foot location in Manhattan, N.Y. The Malin East Austin, another space spanning 12,123 square feet, is also set to open this summer and will comprise 28 dedicated desks, 10 private offices and four meeting rooms.

The post The Malin Enters Savannah With 10 KSF Flexible Office Location appeared first on Commercial Property Executive.

Since its founding in 2010, WeWork has experienced many well-publicized ups and downs. Now, it’s making a fresh start.

Having completed its emergence from bankruptcy late last month, the company has new leadership and an updated portfolio. The revamped WeWork is operating in a significantly changed coworking landscape.

The current coworking climate

Flexible space providers are growing. According to a recent CommercialEdge report, in the past year flexible space has risen to 124.8 million square feet, up from 113.5 million square feet. But almost all of that growth follows a trend toward the suburbs.

Coworking space in those markets increased by almost 9 million square feet during the past year, compared to some 400,000 square feet in urban areas. And if you take out Manhattan, host of the largest urban flexible space market, suburbs account for 52 percent of the nation’s portfolio.

SEE ALSO: How Suburban America Is Changing

Whether the coworking flight to suburban areas will remain a trend is up for debate and depends largely on migratory patterns and hybrid work trends. What is clear, however, is the persistent need for flexible office spaces.

“The flexible office space market continues to shift as it becomes a more mainstream offering for individuals and businesses alike to engage with,” Julie Whelan, global head of occupier thought leadership at CBRE, told Commercial Property Executive. “Landlords are realizing that a portion of the market is drawn to flexibility and are broadening their offerings to stay competitive in a market where traditional leasing demand is down.”

She added that traditional third-party flex office space demand is also strong, as tenants and smaller businesses search for solutions that cater to their specific requirements but differ from traditional office space.

And more companies plan to increase this flex space, too. Early results from a CBRE Occupier Sentiment Survey show that 58 percent of occupiers anticipate having more than 10 percent of their portfolio in flex office space over the next three years. That’s compared to 42 percent today that have that same level of allocation.

“This suggests that demand will remain strong as occupiers look for more flexible and creative ways to provide space to employees,” Whelan said.

WeWork’s path: past, present, future

To this evolving market, WeWork brings a new strategy. Following its Chapter 11 filing last November, the company has pursued a strict restructuring plan. That rightsizing initiative was steered by former CEO David Tolley.

The company ultimately exited 170 locations that no longer fit its business needs as well as renegotiated more than 190 leases. The move reduced total future rent expenses by more than 50 percent, totaling more than $12 billion.

Further, the coworking giant secured $400 million of new equity capital and equitized $4 billion of prepetition indebtedness, all of which has led to an improvement of more than 20 percent in WeWork’s net promoter score.

Now, the WeWork portfolio stands at approximately 600 locations across 37 countries. And the company has a new leader, too, as Tolley has stepped down. WeWork has named John Santora, previously the Cushman & Wakefield Tri-State chairman, as the new CEO.

Santora brings more than 40 years of commercial real estate experience to the helm. He is joining a new board of directors that includes Anant Yardi, president of Yardi Systems, which now owns a majority stake in WeWork, and controls four seats on the board. Softbank and King Street are also part of the new ownership team.

WeWork is set up to move forward with strength. It continues to operate as one of the largest flexible space office providers and utilizes its tech platform to offer a space for modern companies.

Note: Yardi Systems is the parent company of Commercial Property Executive.

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Quest Workspaces has opened its second coworking space in Doral, Fla. The company leased 23,454 square feet of office space at Doral Center in December 2022. CBRE represented the owner, Banyan Street Capital, while Newmark represented the tenant in the negotiations.

The location includes multiple workspace options featuring private offices, coworking spaces, meeting rooms, as well as virtual office solutions. Moreover, an outdoor terrace, open-plan café, phone booths and chat rooms are also available.

READ ALSO: Office Debt – The Underwater Mountain

Banyan Street purchased the 290,157-square-foot, two-building Doral Center in 2020 and earmarked $14 million for capital expenditures. Planned improvements included upgrades to both buildings’ exteriors, landscaping, the expansion of outdoor areas, the addition of a new four-level parking garage, speculative suites and signage.

Quest occupies the entire seventh floor of the 138,885-square-foot Two Doral Center. Completed in 1990, the Energy Star and LEED-certified building features 23,500-square-foot floorplates.

Located at 3750 NW 87th Ave., Two Doral Center is some 8 miles west of the Miami International Airport and roughly 12 miles northwest of downtown Miami. The property is also less than 1 mile from the office building at 8200 NW 41st St. that’s home to Quest’s first Doral location.

Questing for coworking space in metro Miami

Quest currently operates 14 coworking locations, 13 of which being in or near Miami.

One of the firm’s most recent leases in the metro was a 40,820-square-foot commitment at a 619,093-square-foot office tower owned by CP Group. The coworking space at 100 SE Second St. in Miami will open in multiple phases, with the first debuting last year and subsequent phases scheduled for launch this year and next year.

Additionally, Quest operates coworking spaces in Boca Raton, Fla., where it leased a total of 41,964 square feet at 1200 Corporate Place, a 137,000-square-foot building owned by Keystone Property Group. The firm signed two separate contracts for 21,120 and 20,844 square feet, respectively.

Miami’s strong office market

Miami’s coworking space encompassed 1.6 million square feet as of March, representing 3.7 percent of its entire leasable office space and outperforming the national average of 1.8 percent, according to a recent market update.

The metro’s vacancy rate stood at 13 percent in April, up 90 basis points year-over-year, according to a CommercialEdge office report. However, the value remained significantly lower the national average of 18.8 percent, up by 210 basis points over the year.

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Marking its first Dallas-Fort Worth endeavor and ninth location nationwide, Workbox has opened a coworking space in downtown Dallas inside Victory Park, a $3 billion master-planned development.

The Chicago-based firm leased more than 50,000 square feet at Asana Partners’ Victory Plaza, a 230,000-square-foot office campus. The space’s full completion is expected this month.

WeWork previously occupied that coworking location but failed to renegotiate the leasing terms following its Chapter 11 exit. The firm rejected the lease on May 20, as reported by Bisnow.

Victory Plaza, up close

Completed in 2006, Victory Plaza encompasses 185,000 square feet of office space and nearly 43,000 square feet of retail across two five-story buildings, according to CommercialEdge information. Asana Partners acquired the LEED Silver-certified property in 2019.

Workbox’s two-story coworking space, which is also the firm’s largest outside of Chicago, will encompass workspaces, conference rooms, as well as offices for teams varying between one and 130 workers. Amenities are slated to include a daytime lounge and gym, to name a few.

American Airlines Center, a multi-purpose arena home to the Dallas Stars and Dallas Mavericks, anchors the master-planned development. Other tenants include Cumulus Media and the Perot Museum of Nature and Science.

Located at 3030 and 3090 Nowitzki Way in a 90 walk-score and 81 transit-score area, the property is less than 1 mile from Interstate 35 East and roughly 2 miles from U.S. Route 75. Several retail and upscale dining facilities, as well as transit stops, are within walking distance.

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THRIVE | Coworking has acquired transform GSO, an independent flexible office provider with two coworking locations in Greensboro, N.C. Originally known as HQ Greensboro, the company rebranded in 2020. Following the merger, the locations will be renamed as transform GSO Powered by THRIVE | Coworking.

The two flexible office locations total roughly 30,000 square feet, including 74 offices and 11 meeting rooms, as well as open coworking space. The company’s five employees will be retained, as reported by the Triad Business Journal.

READ ALSO: How Flight-to-Quality Is Leading the Flex Office Evolution

The downtown offices are at 109 W. Lewis St. and 111 Bain St., in two adjacent buildings. Both are owned by AZ Development, according to CommercialEdge data. Andy Zimmerman, the owner of AZ Development, is also a co-founder of tGSO along with Ken Causey. In prepared remarks Zimmerman stated he plans to further collaborate with THRIVE in Greensboro.

Completed in 1910, the 109 W. Lewis St. building spans roughly 9,300 square feet. The 111 Bain St. property totals 108,000 square feet across three stories. It originally came online in 1920 as an industrial facility and was converted to office use in 2019. Additionally, the building is subject to an $11 million loan from Townebank originated in 2020, the same source shows.

THRIVE’s coworking footprint expansion

The Greensboro expansion is THRIVE’s third North Carolina venture, along with locations in Ashville and Holly Springs. In an interview with Commercial Property Executive, THRIVE CRO Chris Smith described the company’s growth strategy as aiming for walkable downtown markets ranging between 10,000 and 25,000 square feet.

The company operates various locations in Ohio, Alabama, Georgia and the Carolinas. Asset management group 33 Degrees partnered with THRIVE, intending to open 500 locations throughout the U.S. and Canada. The firm’s strategy mostly revolves around acquiring existing operators who wish to exit or scale.

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Flexible office space provider Industrious has signed a lease extension and expansion for its space at 860 Broadway in Manhattan, bringing its footprint at the property to 27,630 square feet across two floors.

The firm previously occupied 13,815 square feet at Gordon Properties’ building. Cushman & Wakefield brokered the deal on behalf of Industrious, while JLL represented the landlord.

Originally built in 1884 and renovated in 1926, 1979 and 2019, the historic property rises six stories and spans 84,000 square feet. On the ground floor, 860 Broadway also includes more than 11,000 square feet of retail space. Industrious plans to further expand at the property once a fifth-floor addition is completed in the first quarter of 2025, as reported by Commercial Observer.

The historic building once served as one of Andy Warhol’s factory studio and artist hangout locations. In December, fintech company Valon Technologies leased 13,815 square feet at the property. The asking price at the time was $68 per square foot. Kaltura and Selldorf Architects are also on the tenant roster, according to CommercialEdge data.

Located within the Flatiron submarket, 860 Broadway is adjacent to Union Square Park. It is also within walking distance of the Union Square transit hub.

Manhattan’s office market softens

Cushman & Wakefield Managing Directors Justin Halpern and Edward Wartels, along with Advisor Benjamin Bouganim represented Industrious in the transaction. JLL Executive Vice President Seth Hecht and Associate Thomas Swartz worked on behalf of Gordon Properties.

As of March, asking rates in Manhattan clocked in at $71.3, representing a 3.9 percent year-over-year decrease. Despite the drop, the market remains the priciest in the U.S., according to a recent CommercialEdge report. The vacancy rate in the borough stood at 17.6 percent, up 1.1 percent year-over-year, while staying below the 18.2 percent national average.

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Industrious has signed a 19,000-square-foot lease with Watt Cos. at the North Tower of Watt Plaza, a 476,120-square-foot office building in Century City, Calif. The flexible workplace provider entered into a 10-year lease agreement for a full floor at the office complex, which is expected to open in the fourth quarter of this year, after a complete renovation.

Watt Plaza comprises two buildings—The North Building and The South Building—totaling 900,000 square feet. The 23-story towers underwent a major lobby and common area renovation in 2020, which included the addition of a lounge, a flexible conference center, catering wet bar for events, retail space and a courtyard.

Watt Cos. purchased the office buildings back in 1999 in a $47 million portfolio transaction from Nuveen Real Estate, according to CommercialEdge data. The portfolio included 440,120 square feet of office space and 36,000 square feet of retail space at Watt Plaza – North Tower and 440,120 square feet of office space at Watt Plaza – South Tower. In 2015, the pair of buildings became subject to a $220 million loan originated by Prudential Financial, the same data shows.

READ ALSO: Where Branding, Franchising Meet in Coworking

Watt Plaza achieved LEED Platinum certification for the second time in 2017, exceeding its previous Platinum performance by five points due to ongoing improvements and sustainability commitments. Located at 1875-1925 Century Park E., the Class A office buildings are near Route 2, which allows easy access across the Los Angeles metropolitan area.

Industrious’ growing portfolio

With a global network spanning over 200 locations in more than 65 cities, Industrious already leases approximately 40,000 square feet across two additional floors at Watt Plaza at 1925 Century Park E. The flexible office provider recently opened a new location in West Los Angeles, inking a lease with landlord Douglas Emmett for 20,752 square feet at Westwood Center.

As of January, the Los Angeles office market recorded 4.3 million square feet of shared space, ranking second in terms of largest flex office footprint in the U.S., according to a recent CommercialEdge market update.

Industrious has recently expanded its coworking footprint in other metros. The firm partnered with PGIM Real Estate and HPI Real Estate and Investment Services to open Industrious at 3rd & Congress, a 20,573-square-foot coworking space in Austin, Texas. The flex workspace marks Industrious’ fourth location in the city.

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DKC Construction Group serves at the general contractor for the build-out, while L.M. Holder III is designing the interior finishes together with Workplace Studio. International Bank of Commerce provided a $12 million loan to developer CB Capital for the building’s construction back in 2021, according to CommercialEdge data.

The three-story, energy-efficient Class A building will comprise 126 private offices, three private enterprise suites, six dedicated individual desks, five meeting rooms and an expansive coworking space with group and individual seating. Amenities at the MLK location will include three expansive outdoor covered patios, a kitchen, a café, private phone booths and members-only gym with showers. The property will also feature bike storage and approximately 100 parking spaces.

Expanding more in Austin

The future FUSE location is in East Austin, near Interstate 35—allowing for easy access across the Austin metropolitan area. The University of Texas, Waterloo Park and downtown Austin are within a 2-mile radius.

FUSE has expanded to six sites, evenly distributed between downtown and suburban Austin. An upcoming announcement will unveil a fifth location in North Austin. With the addition of the MLK site, the company’s total portfolio will exceed 125,000 square feet, featuring 533 private offices and 23 conference rooms.

As of February, Austin recorded 4.3 million square feet of office space underway across 30 properties, according to a recent CommercialEdge market update. The under-construction stock accounted for 3.9 percent of existing stock—above the national figure of 1.6 percent. So far this year, the metro ranks among the top-performing office markets in the U.S. based on its sales volume.

Austin’s coworking sector boasted 1.1 million square feet of shared office space in February, the same source shows. The figure amounted to 1.7 percent of the metro’s total leasable office space, on par with the national figure.

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Flexible office provider Industrious has opened a new location at Westwood Center in Westwood, Calif. The company inked a leasing agreement with landlord Douglas Emmett for 20,752 square feet of coworking space in West Los Angeles.

The location will host 234 desks at the 333,830-square-foot property. Built in 1962, the tower rises 22 stories, featuring 30,202-square-foot floorplates and 14,500 square feet of retail space. It comprises amenities such as valet services, 24-hour security and on-site storage. Other tenants at the property include Savills, Gemini Partners and various law firms, according to CommercialEdge data.

The owner acquired the building in 2016 for $268.9 million, as part of a larger portfolio transaction amounting to nearly $1.4 billion, the same source shows. In 2021, Wells Fargo originated a $625 million loan for a collection of Douglas Emmett properties, including Westwood Center.

Located at 1100 Glendon Ave., within Westwood Village, the building is near Interstate 405, roughly 15 miles from downtown Los Angeles and less than 4 miles from The Getty. It is also some 5 miles from Santa Monica Airport and adjacent to the University of California.

Industrious’ expansion plans

The flex office provider also announced another coworking location in Santa Monica slated to open in winter 2024. This location will span 23,331 square feet comprising 242 desks. Also owned by Douglas Emmett, the building is located at 808 Wilshire Blvd., some 4 miles from Westwood Center.

The company has found that the best markets and submarkets for its locations are mixed-use neighborhoods that provide retail and dining options within walking distance, Industrious CEO & Co-Founder Jamie Hodari told Commercial Property Executive in a recent interview. This approach may lead to the coworking provider expanding in non-traditional office submarkets, Hodari added.

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Texas-based flexible office provider Lucid Private Offices has signed a lease agreement with landlord Artis REIT to bring 25,000 square feet of coworking space in Scottsdale, Ariz. This is the company’s second location in the state and is slated to open in November 2024. Cresa and Locate AI represented the tenant in the transaction, while Newmark worked on behalf of ownership.

The coworking space will comprise more than 100 private offices within suite 300 of the MAX at Kierland building. Artis REIT acquired the 260,000-square-foot property from Trammell Crow in 2012 for $79 million, according to CommercialEdge data.

READ ALSO: How Flight-to-Quality Is Leading the Flex Office Evolution

Built in 2008, MAX at Kierland rises six stories and features ground-floor retail and a parking ratio of 4 spaces per 1,000 square feet. Other tenants at the LEED Gold-certified property include Global Strategic Investment Solutions, Ameriprise Financial and Willis Personal Lines Insurance, the same source shows.

Located at 16220 N. Scottsdale Road, the property is roughly 21 miles north of downtown Phoenix and less than 2 miles from Scottsdale Airport. The Max at Kierland is also within walking distance of the Kierland Commons and Scottsdale Quarter shopping malls.

Cresa Principal John Pelletier and Vice President Austin Studebaker, along with Locate AI Managing Principal Jim Sadler, represented Lucid. Newmark Senior Managing Director Patrick Devine and Executive Managing Director Michael Garlick worked on behalf of Artis REIT.

Lucid grows in Phoenix

Lucid’s first Arizona location is also in metro Phoenix, spans 26,910 square feet and will open on May 1st. The flexible office provider will occupy a full floor at the 24th at Camelback II building owned by Hines and Invesco Real Estate.

There were some 1.2 million square feet of coworking space in the Phoenix office market as of February, according to recent CommercialEdge data. The volume of flexible space accounted for 1.5 percent of total office stock, slightly below the 1.7 percent national rate.

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Flexible office provider Convene has expanded its footprint at 360 Madison Ave. by 22.519 square feet, taking the sixth floor. Together with the fourth and fifth floors it already operates at the building, the company brought its total commitment to the Midtown Manhattan location to 68,000 square feet. The landlord is Stawski Partners, according to CommercialEdge data.

The expansion will include a 13-person boardroom, three event rooms with capacities ranging between 36 and 42 guests, as well as a divisible conference hall allowing for up to 210 individuals. Across all three floors the location will comprise 15 meeting rooms allowing for a total of more than 950 guests.

The sixth-floor expansion is slated to open in 2024’s final quarter. The fourth and fifth floors currently operate under the etc.venues name, a subsidiary brand, and will rebrand to Convene starting in 2025’s first quarter.

The 360 Madison Ave. building rises 25 stories and spans 358,934 square feet. It was completed as a retail building in 1917 and converted to office in 1975, then underwent renovations in 2002 and 2019. In 2018 it became subject to a $150 million loan from Helaba Bank, according to CommercialEdge data.

Convene eyeing footprint expansions in 2024

In 2024, Convene plans to strengthen its position in the markets it currently operates in, such as San Francisco, Boston, New York and London, by expanding its footprint as well as renovating and relaunching locations in these metros, the company’s Co-Founder & CEO Ryan Simonetti told Commercial Property Executive in a recent interview. The firm is also eyeing expansion opportunities both in new U.S. markets and abroad, as well as actively considering various mergers and acquisitions, Simonetti added.

Recently, Convene partnered with landlord RXR Realty for a 30,000-square-foot meeting and conference center in Midtown Manhattan, in the company’s fifth collaboration with the owner. The location will operate under the Venue 42 by Convene brand and will comprise multiple customizable meeting rooms for corporate events.

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Flexible office provider Stark Office Suites has extended and expanded its lease to 23,538 square feet of coworking space in Greenwich, Conn. The tenant grew its footprint in the building at 777 W. Putnam Ave. by 5,722 square feet. Newmark represented the landlord, Shelbourne Global Solutions.

Shelbourne acquired the 134,000-square-foot asset in 2022 from Fifth Street Asset Management for $48.5 million, according to CommercialEdge data. In 2023, the property became subject to a $23.5 million loan from Digital Federal Credit Union, the same source shows.

Completed in 1976, the office building underwent a cosmetic renovation in 2011. It rises three stories and features 44,000-square-foot floorplates. Recently, Shelbourne completed another extensive capital improvement program at the property. Amenities include a café, outdoor patio and on-site management. Other tenants are Marc Fisher Footwear and The Richman Group.

Located off Highway 1, the property is on the border between New York State and Connecticut and roughly 34 miles north of New York City. It is also some 6 miles from the Westchester County Airport and less than 3 miles from the Greenwich Hospital.

An expansive national CRE portfolio

Newmark Executive Vice President & Managing Director James Ritman, along with Managing Director Benjamin Goldstein, represented the landlord in the transaction.

New York-based real estate company Shelbourne Global Solutions owns and manages more than 8 million square feet of commercial real estate across various asset types, totaling a $1 billion national portfolio. Recently, the firm acquired Plaza of The Americas, a 1.2 million-square-foot office property in downtown Dallas. Newmark was also involved in this transaction, representing the seller.

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Flexible office provider CENTRL Office has taken over the former WeWork space at the Kelly-Springfield Building, comprising 53,365 square feet of coworking space in Seattle. The firm will operate the space under a management contract with landlord Legacy Cos. WeWork vacated the offices in February, after it filed for Chapter 11 bankruptcy. CENTRL plans to open the location in July.

Originally completed in 1917 as an industrial property, the building underwent a conversion to retail use in 1963, followed by an office repurposing in 2019, according to CommercialEdge data. In 2018, it became subject to a $49 million construction loan from Bank of America, the same source shows.

Rising five stories, the building now spans 85,991 square feet of office space. It features an on-site bike locker, rooftop terrace, showers and a conference room. Kidder Matthews Vice President James Yalowitz represented the tenant in the transaction.

Located at 1525 11th Ave., the Kelly-Springfield building is about a mile from downtown Seattle and is adjacent to the Cal Anderson Park. It is also within walking distance of multiple public transit options.

As of February, the average listing rate in Seattle clocked in at $37.87, after registering a 2 percent year-over-year decrease, and on par with the national figure of $37.83, according to a recent CommercialEdge report. The vacancy rate in the metro reached 22.5 percent, rising by 4.3 percent over 12 months and considerably surpassing the 17.9 percent U.S. rate.

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The flight-to-quality trend that has been driving the office sector for the past several years is also fueling growth in the flex office space.

With an increased emphasis on quality over quantity, workspace providers have been experimenting with different new elements to attract tenants, including the addition of community-building events, elevated design and wellness amenities. And the hospitality industry serves as a source of inspiration for many of these enhancements, according to Ryan Simonetti, CEO & co-founder of Convene.

Focusing on designing, building and operating flex and meeting spaces in 39 locations across nine cities in the U.S. and the UK, Convene’s approach is hospitality-driven. What does that mean exactly? We asked Simonetti to expand on why tenants have come to expect the office to be more of an experience than simply a space to get work done, and how landlords are adapting to the flight-to-quality trend.

READ ALSO: What Office Users Want in Flex Space Now

Convene has more than 44 years of combined experience across its portfolio of brands. How much has the flex industry evolved over the years and what contributed to changes in the space?

Simonetti: While we expanded our product offerings in 2018 to include flexible office solutions, our core business is and always has been creating premium meeting and event venues. Across our global portfolio of brands, which includes etc.venues, the biggest shift we’ve witnessed in the industry coming out of COVID-19 is the flight-to-quality and flight-to-experience that is forcing companies and landlords to rethink the office and the purpose it serves.

In a hybrid-first working world, leaving the house to meet with teams and colleagues in person must feel ‘worth it’—and so we’re seeing high-quality, design-led, experience-driven workplace destinations outperform the rest of the industry. Landlords are also investing heavily in amenitizing their buildings and partnering with flex operators to accommodate the new way of working, offering more meeting rooms, collaboration spaces and hospitality services. 

What are the top trends you’re noticing today in the flex industry sector, particularly in terms of workspace design and amenities?

Simonetti: Today’s top trends in the industry are all about driving return-to-office and creating experiential workplace destinations.

Half the space, twice the experience—while companies are leaning into flex as they ‘right-size’ their real estate footprint, they’re still prioritizing an elevated workplace experience that makes teams want to come to the office. A well-designed space is no longer enough and flex providers need to offer quality hospitality services.

Convene’s WorkPlace is at 100 percent occupancy in most locations because of its concierge-style service, meeting and event spaces, executive chef-prepared dining options, wellness offerings, member events and programming. The workplace of the future is a meeting space.

In a hybrid work world, companies still need a place to bring teams, colleagues and clients together to connect and collaborate in person. In the last year, we have seen a 15 percent increase in demand for meetings across our global portfolio, with demand in 2024 pacing significantly ahead of last year. Beyond adding flex office spaces, landlords are tapping flexible office providers to design and manage high-quality meeting and conferencing centers within the building itself as an amenity offering for all tenants, like Venue 42 by Convene at 5 Times Square in New York City.

As flex office becomes a more permanent workplace solution for companies, they want to put their stamp and their brand on the space, so it feels like ‘home.’ It is no longer enough to simply put the company logo on the door. We’re now seeing an increase in requests for custom designs within our private WorkSuites, including branded wall decals, accent furniture and other personalization opportunities to make the space feel like their own.

READ ALSO: Where Branding, Franchising Meet in Coworking

How are you staying competitive in the rapidly evolving flex market?

Simonetti: I’ve always believed that the future of the flex industry will look a lot like the hotel industry, with multiple brands that can serve the various needs and budgets of clients sitting under the umbrella of a single global parent company.

Convene started making inroads in this direction last year with the acquisition of etc.venues and the accelerated growth of our ‘by Convene’ venues via landlord partnerships. We recently announced the further segmentation of our portfolio, positioning Convene as a premium lifestyle brand for larger, highly experiential events and our workplace offering, and etc.venues as an accessible lifestyle brand ideal for small meetings and corporate training. We believe this strategy will allow us to capture a much larger market share and are eager to continue down this path through both organic and M&A growth opportunities.

What’s the typical layout of your coworking spaces? How exactly does the layout promote productivity and collaboration among users?

Simonetti: At the heart of any Convene location are our food and beverage spaces, including cafes and unlimited snack stations. Our properties range in size from 20,000 square feet to as large as 100,000 square feet for flagship Convene locations that include our WorkPlace product and a full suite of amenity solutions. Given our core business is meetings and events, every single one of our locations has a diverse offering of meeting and event spaces, both big and small, for our clients to meet, collaborate and host a diverse range of corporate events.

Several Convene locations are built to support large, experiential meetings, conferences and exhibitions, and feature grand halls for mainstage sessions, breakout rooms, and expansive gallery spaces that allow for networking opportunities. A great example of this is Convene Sancroft, St. Paul’s, set to open in April, which will introduce the largest single above-ground meeting room in the City of London, able to accommodate up to 900 attendees.

Expand on the hospitality-centric amenities across your locations, which often means incorporating wellness elements to support users’ health and well-being.

Simonetti: One of the most notable hospitality offerings at Convene is our in-house culinary team. Each location has a full kitchen staff led by an executive chef who is focused on creating nourishing and energizing food with premium, locally sourced ingredients to help our clients power through their workday.

To me, hospitality also means providing an above-and-beyond human-to-human service experience, which is why we provide our clients with a dedicated single point of contact to help them navigate any needs they may have, ensuring a seamless experience. Our on-site team members are also trained in hospitality best practices, practice empathy and are encouraged to be as anticipatory as possible when it comes to making sure our clients and their guests have a five-star experience. 

On the wellness side, we operate onsite wellness facilities and have a long-standing partnership with primary care practice Eden Health, offering complimentary access to all members of our flexible workplace product.

READ ALSO: Beyond Aesthetics—Prioritizing Well-Being in Workplace Design

How do you expect the role of meeting and event space within coworking flex spaces to evolve?

Simonetti: Meetings and events are emerging as a core element of return-to-office strategies for a lot of companies. As a result, we’re seeing more and more landlords interested in adding large meeting and event venues to their office buildings as a means of attracting and retaining tenants. With flight-to-experience taking hold, Convene has become the partner of choice for Class A landlords and developers looking to bring their buildings to life by creating hospitality-infused amenity experiences. 

How do you identify suitable locations to add to your portfolio?

Simonetti: We have been very intentional and methodical in our growth, selecting the right cities, locations, landlord partners and even floorplate sizes that meet the needs and demands of our clients. For example, San Francisco was our top-requested market from existing Convene clients for almost five years before we finally launched Convene 100 Stockton at the end of 2022.

What are your expansion plans this year? Are there any new markets that you’re targeting?

Simonetti: Right now, Convene is focused on strengthening its foothold in existing markets, including San Francisco, Boston, New York and London. We’re opening a new location in New York City this month, a new location in London in April, and are renovating and relaunching some properties across our portfolio this year. That said, we’re also exploring expansion opportunities in new, high-demand markets both domestically and abroad in Canada and Europe, and are actively considering an expansion of our portfolio via additional M&A.

Considering the current economic context, what are your expectations for the flex office sector?

Simonetti: Flight-to-quality and flight-to-experience are at the forefront of the ongoing commercial real estate revolution. With the increasing demand for access to a global network of high-quality workplace experiences and the capital markets challenges facing the sector, there must be further industry consolidation to enable a larger global platform to take advantage of economies of scale as they look to serve clients and landlords across multiple geographies, brands and price points.

We will also see the rise of Office 3.0, where buildings become brands and tenants become treated more like members. To attract tenants back to the office, buildings must deliver amenity-rich and hospitality-infused environments. The value in office buildings is moving from the back-of-house to the front-of-house, replacing legacy property management with experience management. In this new world, if landlords want to remain competitive and create value for their investors, they will need to partner with established brands that have the expertise, scale and capability to help them adapt and thrive.

The post How Flight-to-Quality Is Leading the Flex Office Evolution appeared first on Commercial Property Executive.

Flexible office provider The Malin will open The Malin NoMad, a new coworking location in Manhattan, N.Y. The company will occupy 20,000 square feet at a building owned by TF Cornerstone. This is the firm’s fourth location in New York City, with opening planned for this summer.

The Malin will occupy the entire fifth floor at 387 Park Ave. S. The location is slated to include 10 private offices, three meeting rooms, 16 phone booths, 18 dedicated desks, five communal tables, a boardroom, a library and a kitchen.

Originally completed in 1910, the building rises 12 stories and spans 232,000 square feet, also including some 15,000 square feet of retail space. In 2017, the owner completed a more than $20 million renovation program, improving the lobbies, mechanical systems and façade. Architecture firm Moed de Armas & Shannon designed the upgrades.

In 2015, the property became subject to a $100 million loan with a 15-year term, provided by Equitable Insurance Co., according to CommercialEdge data. Tenants at the property include Atrium Staffing, Silicon Valley Bank and Criteo, the same source shows. The building is close to Madison Square Park and within walking distance of the 28 Street subway station.

As of January, Manhattan remained the priciest market in the nation with listing rates clocking in at $68, marking a 9.9 percent year-over-year drop, according to a recent CommercialEdge report. The vacancy rate in the borough was 16.5 percent, rising by 100 basis points over 12 months and being below the 18 percent U.S. figure.

The post The Malin to Expand Manhattan Coworking Footprint appeared first on Commercial Property Executive.

Jason Anderson is the president of Vast Coworking Group, a company that has three coworking brands across nine countries and more than 200 flex office spaces. Vast is among the largest franchisors in the world, with Venture X, Office Evolution and Intelligent Office locations encompassing 2.4 million square feet.

In this interview, Anderson dives deep into branding models and talks about how he strives to transform his company into the “Marriott of coworking,” as he puts it.

READ ALSO: From Traditional Office to Coworking—Making the Switch

What has been pushing the coworking sector forward in the past few years?

Anderson: Currently, the coworking industry is experiencing a phase of rapid growth and expansion. The increased adoption of remote work arrangements has led to a surge in demand for flexible office space, as businesses seek agile solutions to accommodate distributed teams and changing work preferences. Vacancies in traditional commercial real estate have created opportunities for coworking operators to fill the void, offering landlords a viable alternative to long-term leases. This period of hyperscale growth has propelled the coworking industry into new territories, with a focus on innovation, collaboration and sustainability.

How does your brand stand out in the coworking landscape? What’s your brand’s story?

Anderson: At Vast Coworking Group, our branding model is inspired by the success strategies of established industry giants like Marriott in hospitality. Recognizing the lack of a dominant franchise player in the coworking sector, we set out to emulate Marriott’s approach to brand diversity and customer loyalty. We aim to offer a variety of coworking experiences under our umbrella. We tailor our coworking spaces to meet the varied needs of our clientele and our goal is to become the go-to destination for businesses seeking flexible office solutions.

We prioritize creating a cohesive ecosystem that incentivizes our members to stay within our network, fostering loyalty and maximizing value for both them and our brand. By positioning ourselves in alignment with Marriott’s successful branding strategy, we attract a diverse range of clientele, including top-tier businesses and industry leaders, who trust us to provide exceptional coworking experiences tailored to their unique requirements.

READ ALSO: When Coworking Meets Hospitality—A New Jersey Success Story

Vast’s framework includes several types of offerings. Could you expand on each and how you’ve given them different visual identities to appeal to different audiences?

Anderson: Each of our offerings has distinct visual identities and service offerings designed to appeal to diverse audiences. The remote option caters to individuals or teams who primarily work remotely but occasionally need access to professional amenities and meeting spaces. It’s ideal for those seeking flexibility without committing to a dedicated office space.

Distributed hub-and-spoke combines centralized office hubs with satellite locations—spokes—closer to where members live or work. It provides the convenience of local access while leveraging the resources of larger centralized hubs. Our centralized locations offer comprehensive workspace solutions, including private offices, conference rooms and event spaces. These locations are characterized by their size and amenities, catering to larger teams and hosting a variety of events.

Each type of offering is visually differentiated to reflect its unique characteristics and target audience. For example, Intelligent Office emphasizes personalized service offerings, such as virtual assistant services and private office spaces. The branding is subtle, creating a seamless integration with members’ businesses. Office Evolution features branded spaces with a focus on flexibility and scalability. With a larger footprint and a higher number of private offices, it appeals to growing businesses seeking professional environments.

Venture X offers expansive, modern spaces with versatile layouts, including coworking areas and event spaces. The branding is vibrant and dynamic, reflecting a focus on innovation and collaboration. By tailoring our offerings and visual identities to different audiences, we ensure that each member finds a workspace solution that suits their unique needs and preferences, whether they prioritize flexibility, scalability, or comprehensive amenities.

With so many locations in various countries, how do you ensure branding consistency across your portfolio?

Anderson: Ensuring branding consistency across our portfolio becomes easier as we expand. With a franchise model, success drives adherence to branding standards. When locations thrive, there’s strong alignment with brand guidelines. Our focus on three key performance indicators—leads, occupancy and revenue—guides our support team. If we’re driving growth in these areas, maintaining brand consistency is straightforward.

Challenges arise when locations struggle to meet these KPIs, leading to potential deviations from branding standards. Ultimately, by providing value and support that enhances location success, we mitigate branding issues and foster cohesion across our network.

READ ALSO: The Future Has Never Been Brighter for Coworking, Says Serendipity Labs CEO

Is it difficult to balance between maintaining brand consistency and allowing for localized customization to meet the unique needs of different markets?

Anderson: Balancing consistency with localized customization is akin to the approach taken by well-known brands. While customers expect a certain level of consistency, variations exist to accommodate diverse market needs. For instance, within the McDonald’s chain, locations can differ significantly in appearance and amenities. Similarly, our coworking spaces maintain a minimum level of quality and consistency defined by brand standards.

However, we also allow for creative flair and customization by franchisees, as those have the flexibility to personalize aspects of their spaces, such as interior design, within the parameters set by our brand standards. This approach ensures that while there’s consistency in quality and brand identity, each location can reflect its unique market and clientele.

For example, at one of our Venture X locations in Fairfax, Va., the franchise owner added elegant chandeliers and a living wall to enhance the ambiance. We support such upgrades if they align with our brand values and elevate the overall experience for members. Ultimately, we aim to maintain a balance where franchisees can infuse their creativity and local market insights while upholding the core brand identity and quality standards across our network.

Can you tell us more about how you acquired and refined your three brands?

Anderson: Venture X, Intelligent Office and Office Evolution were existing successful brands we acquired to enhance and expand. Intelligent Office was founded in 1995 and started franchising in 1999. We acquired it in 2024, with the goal of further improving its offerings.

Office Evolution originated in 2003, stemming from the founder’s positive experience utilizing flexible office space at an Intelligent Office location in Boulder, Colo. and we acquired it in 2022 to bolster our portfolio.

Venture X began in 2012 in Naples, and we partnered with them in 2015 to explore franchising opportunities. In 2016, we launched Venture X as a franchise, leveraging our industry analysis and vision to position it as a premier coworking brand.

How do you ensure that your coworking brands remain adaptable and responsive to the constantly changing needs of modern businesses and remote workers?

Anderson: Unlike a corporate ecosystem, our franchisees are deeply immersed in their businesses daily, with a personal stake in their success. This means they’re constantly attuned to the evolving needs of modern businesses and remote workers. With over 160 franchise owners actively engaged in their local markets and the industry, we receive real-time updates and feedback. This keeps us informed and agile, ensuring that our coworking spaces remain aligned with the changing landscape of commercial real estate and the demands of our clientele.

Why should potential partners consider utilizing a franchise model?

Anderson: Utilizing a franchise model offers significant advantages, particularly in industries with large investments, local presence and service-related offerings. Consider industries like gas stations, hotels and fast-casual dining, where franchising is the norm and success often hinges on local expertise and investment. Franchising allows for shared risk and capital, with franchisees having a vested interest in the success of the business. They bring local knowledge and a personal stake, often resulting in higher operational efficiency and customer satisfaction compared to corporate-run establishments.

While franchising isn’t the sole path to success, it’s a proven model in many sectors, offering a higher probability of success than solely corporate-run operations. In industries where competitors are franchising, it’s a strategy worth considering for scalability and market competitiveness. For us, acquiring existing successful brands was a strategic move to combine strengths and leverage franchising as a means to compete effectively against larger players in the coworking industry, ultimately enhancing our market position and scalability.

READ ALSO: Focus on Flexibility—Navigating NYC’s New Office Landscape

Looking ahead, what are your growth objectives? What role does branding play in adding more locations to your portfolio?

Anderson: Our growth objectives revolve around achieving market dominance, albeit with a touch of humor. When we started with just one Venture X location, aiming to become the third-largest player seemed audacious. Yet, through strategic expansion, we’ve achieved that milestone, boasting over 200 locations worldwide.

Our brand consolidation under Vast has been instrumental in signaling our unified approach to landlords and investors. With a database of 45,000 potential franchisees and 220 locations already sold, we’re on track for exponential growth. Moreover, our diverse portfolio, ranging from 2,500 to 50,000 square feet, allows us to cater to various property needs, setting us apart from competitors.

Looking ahead, our goal is for Vast to be the go-to choice for landlords and consumers alike, akin to how travelers rely on Marriott or the One World Alliance for consistent service and rewards. By positioning ourselves as the Marriott of coworking and the One World Alliance of flexible office space, we aim to establish Vast as the premier solution in the industry.

The post Where Branding, Franchising Meet in Coworking appeared first on Commercial Property Executive.

Potential bidders are eyeing WeWork and its footprint, which includes this 44,313-square-foot space at 250 E. 200 South in Salt Lake City. Image courtesy of WeWork

A home rental platform is the latest suitor to emerge in pursuit of WeWork. Rentberry said on Friday that it will unveil a proposal this week to acquire the flexible office provider, which filed for Chapter 11 bankruptcy protection in November.

Rentberry did not disclose financial details or the expected date of the offer. In a statement, the San Francisco-based company said that WeWork’s model would complement Rentberry’s proprietary Flexible Living model, which enables residents to rent furnished properties without security deposits for as much as one year. The resulting network would cater to the lifestyle needs of mobile professionals, the company added.

READ ALSO: Why Coworking Is Catching On Again

The company’s partners would include Berkeley Hills Capital, described on its website as a venture capital firm focused on early-stage companies in real estate, biotechnology, health care and other sectors. Of note, Rentberry’s also cited a collaboration with PJT Partners, a New York City-based investment bank that also serves as an adviser to WeWork.

WeWork buyout rumors

Rentberry’s planned bid follows widely circulated reports by CNBC, DealBook and other sources this month that WeWork’s ousted founder, Adam Neumann, wants to buy the company out of bankruptcy. Neumann initially said that his buyout plan had backing from Third Point, the opportunistic investment manager led by investor Dan Loeb. But Third Point later told CNBC that any discussions were preliminary and that the company “has not made a commitment” to a deal.

READ ALSO: Coworking Trends to Keep an Eye On in 2024

Meanwhile, WeWork is publicly expressing no interest in accepting a buyout offer. In a Feb. 6 statement that did not mention the reports of Neumann’s potential bid, the company said that it regularly receives “expressions of interest,” which it reviews in concert with its advisers. WeWork added that its initiatives, which emphasize restructuring the business and “addressing unsustainable rent expenses,” will position it as an independent company for the long term.

In a separate statement, WeWork said on Jan. 29 that it has achieved more than $1.5 billion in rent savings through 60-plus lease agreements. It also stated that it has filed motions in court to assume leases at four properties:

• 71 Fifth Ave., New York City (owner: Madison Capital)
• The Watermark, Tempe, Ariz. (Fenix Development)
• 800 N. High St., Columbus, Ohio (Crawford Hoyer)
• 901 N. Glebe Road, Arlington, Va. (Piedmont Office Realty Trust)

The post New WeWork Suitor Emerges appeared first on Commercial Property Executive.

Convene has partnered with owner RXR Realty to open a new meeting and conference center at 5 Times Square in Midtown Manhattan.

Venue 42 by Convene will occupy approximately 30,000 square feet on the building’s fifth floor. The space is expected to open in March.

Venue 42 by Convene will comprise nine meeting rooms, which can be customized to accommodate various types of events such as company town halls, classroom-style learning, social events and conferences. The largest meeting room will have the capacity to host as many as 240 guests. This project marks Convene’s fifth collaboration with RXR Realty. It is also the 15th location in New York City for the global meeting, event and flexible workspace provider.

READ ALSO: What Workers Want Now in Office Design

Developed in 2002, 5 Times Square spans more than 1.1 million square feet across 37 stories. The property features a 32,000-square-foot amenity floor which includes a fitness center, two golf simulators, a lounge and a bar and restaurant. One sizeable tenant is Roku, which occupies 240,000 square feet in the building, Commercial Edge data shows. Located in Midtown Manhattan, the high-rise is adjacent to the Times Square–42 Street subway station.

RXR Realty acquired 5 Times Square in 2016 for $1.6 billion, according to CommercialEdge information. In 2023, the asset became subject to nearly $60 million in debt across four loans from Morgan Stanley Bank and Athene USA Insurance Co., the same source shows.

Manhattan’s high leasing rates

As of December 2023, Manhattan maintained its spot as the priciest market for office leasing in the U.S., with an average listing rate of $70 per square foot, representing an 8 percent year-over-year drop, according to a recent CommercialEdge market update. The borough also had the biggest flexible office stock in the country at 9.5 million square feet, representing 2.5 percent of its entire office stock, the same source shows. Convene’s footprint in the market totals 550,612 square feet.

The post Convene to Open New Location in Manhattan appeared first on Commercial Property Executive.

Industrious has teamed up with PGIM Real Estate and HPI Real Estate and Investment Services to open Industrious at 3rd & Congress, a 20,573-square-foot coworking space in Austin, Texas.

The flex workspace location, which marks Industrious’ fourth in the city, is situated within PGIM’s 22-story office building at 301 Congress Ave. The company purchased the 418,388–square-foot property in 2015 for $240 million, CommercialEdge data shows.

Industrious at 3rd & Congress provides 251 desks, 35 offices for teams of as many as 20 people, 20 phone booths and four conference rooms. Amenities include weekly happy hours, unlimited color printing, a wellness room, as well as daily breakfast and snack offerings. Tenants also have access to the building’s ground-floor retail space, conference center and Tacodeli restaurant.

The 301 Congress Ave. building is less than a mile from downtown Austin, next to Interstate 35 and several dining and retail options. The property’s tenant roster includes Morgan Stanley, Teza, EDF, NinjaOne and Cordell & Cordell.

Focusing primarily on locations within mixed-use neighborhoods, where people can benefit from a live-work dynamic, Industrious is rapidly expanding its portfolio across multiple markets. Industrious at 3rd & Congress marks the company’s ninth location in Texas, following the addition of a 23,489-square-foot coworking space in downtown Houston in July last year. The coworking space operator also has a presence in Dallas and Plano, Texas.

The post Industrious Expands Austin Coworking Footprint appeared first on Commercial Property Executive.

The coworking sector continues to show resilience, swiftly adapting to tenants’ constantly changing needs and wants. With growth mainly fueled by the pandemic-induced rise in hybrid work, coworking providers are now taking workspaces to the next level, banking on the ever-increasing demand for flexible and collaborative spaces.

“The pandemic has changed work, and while some executives may be insisting on a return to office, they know remote work isn’t going away,” said THRIVE | Coworking Chief Revenue Officer Chris Smith.

Over the past few years, operators have been actively remodeling the fundamental characteristics of workspaces as we know them in the traditional office sector. Coworking is no longer just a space where people work remotely. It is now part of the flexibility and agility movement that the modern worker expects. And office owners are finding ways to cope with this shift by adding flex space to their offerings.

READ ALSO: As Hybrid Work Expands, Coworking Is No Longer the Exception

“Traditionally, building owners have used incentives such as free rent, tenant-improvement allowance and expansion or contraction options to entice tenants when necessary,” said CBRE Global Head of Occupier Thought Leadership Julie Whelan. “Now flex space is a factor in that equation. Building owners can offer access to on-demand space during peak office attendance times, free hours of shared meeting space in the building, or bundling a long-term lease with a short-term suite requirement. Thus, flex office and meeting space offerings are part of the building amenitization,” she added.

According to a CBRE report on flex space demand and the company’s Spring 2023 U.S. Office Occupier Sentiment Survey, most investors are adding flexible spaces to their portfolios to reduce capital expenditures, offer collaboration space on demand and enter new markets. The biggest challenge here is creating a winning formula for all the parties involved: the landlord, the tenant and the flexible space provider.

Where coworking comes into play: trends and dynamics

As industry players navigate through the shifts in traditional office spaces, coworking is seen as a viable investment alternative because it offers exactly what today’s tenants and office users want: adaptable facilities that encourage teamwork, flexible scheduling and a better work-life dynamic.

As more businesses permanently adopt a combination of in-office and remote work, hybrid models play a critical role in coworking’s overall growth.

“Overall, demand for coworking is solid across a range of occupier types as companies adjust their real estate strategies to better manage hybrid working patterns,” Whelan noted. “Occupier strategies often include a portion of space dedicated to coworking—especially for requirements of 50 desks or fewer.”

Peter Kolaczynski, associate director at CommercialEdge, believes that cost savings are the main factor driving demand for coworking space nowadays. Additionally, with more vacant space in office buildings, an increasing number of landlords are embracing management-style agreements with operators.

Meanwhile, new approaches to coworking are also gaining traction. Quest Workspaces is now offering short-term rentals by month or by week, but the company’s packages also include on-demand services by hour. CEO Laura Kozelouzek told Commercial Property Executive that Quest provides a high-end experience combined with hospitality-centric services, which becomes a differentiator in the sector.

Other trends emerging in the sector are all access and pay-as-you-go solutions, according to Christelle Bron, CBRE’s Americas agile practice leader. “WeWork saw a 21 percent year-over-year increase in this product segment in 2023,” said Bron.

Another trend gaining momentum is coworking spaces in retail centers and apartment buildings, with the shared space model penetrating both industrial and retail fields for individual services, said Kolaczynski.

As for the layout of the spaces, many operators noticed an increased interest in private offices as opposed to mostly shared workspaces, with new company formation fueling the growth of smaller office layouts in coworking spaces.

“For a fraction of the cost of a traditional office, an entrepreneur can have their own space, personalize it however they like, and enjoy all the perks without the headaches and maintenance associated with leasing a standalone brick-and-mortar office,” Smith said.

What are the biggest challenges for coworking in 2024?

Although most operators view coworking as a hotspot in the industry, there are some challenges ahead in the sector, mainly originating from the ongoing economic uncertainty and the need to constantly adapt to tenants’ expectations. Finding the right balance between affordability, high-quality services, as well as partnering with the right investors, might also pose challenges going forward.

“I think the biggest challenge in the market today is the capital market environment which has led to more bank involvement in every deal we source” said John Wallace, CEO of Workbox, an operator with coworking locations across four states. “We utilize shared economic agreements which produce more cash flow variability than typical conventional leases, so we spend more time educating parties of the merit than in more normal markets.”

READ ALSO: Office Trends in 2024—How Much Will the Sector Change?

But despite the economic unpredictability, Smith believes that the low unemployment rate fueled by Gen Z and Millennials in the workforce will continue to drive demand for hybrid work settings, ultimately benefitting the coworking sector. Kozelouzek is even more optimistic, looking at the economic volatility as an environment that supports demand for coworking space due to more flexibility at minimal costs.

Rapid expansion

With the sector constantly growing, more companies are expanding their portfolios in markets where they’ve previously been active in, but don’t refrain from entering new areas either.

Established industry player Industrious opened its first Boston location in March of 2023. The company opened a 21,550-square-foot coworking space at a Harvard Square property owned by Carpenter & Co. Workbox also made its debut in Salt Lake City with a three-story location encompassing 19,972 square feet.

“We leverage our unique market segmentation to provide outsized value to our customer base and ultimately higher occupancy and revenue rates for our landlord partners,” said Wallace. “Our strategy focuses almost exclusively on takeovers of underperforming assets that would otherwise require heavy capital infusions to repurpose.”

In the past year, THRIVE | Coworking also grew its portfolio, adding five locations in five months, including a space in Gainesville, Fla., within a 1900-built historical building. The provider also added a new 21,450-square-foot coworking space in Greenville, S.C., to its footprint. As for 2024, the company plans to open a new location in Bozeman, Mont., and four new spaces in Winston-Salem and Chapel Hill, N.C., Duluth, Ga., as well as Birmingham, Ala. The provider caters to a wide range of industries, from lawyers and accountants, to marketers and realtors of all ages.

Despite coworking expanding to new markets, higher penetrated markets such as Miami; Nashville, Tenn.; Austin, Texas; and New York City, are still registering the highest demand. NYC leads the sector in terms of square footage, while Miami remains the most penetrated market. Quest Workspaces, for example, generated 30 percent growth in 2023 by expanding in South Florida and adding new locations in Miami-Dade County.

One thing that has shifted for sure in both traditional office space and coworking is the creativity around catering to tenants’ individual needs. Besides free drinks and snacks, it’s convenience that matters most to tenants, especially proximity to their homes and position in vibrant neighborhoods, according to Smith. Fostering a sense of community is also a priority for some companies.

“They like the ability to network and meet new people, and the monthly breakfasts, lunches and happy hours are a great way for the community to benefit from each other, leading to more resources and new business opportunities,” Smith added.

Most of Workbox’s tenants are companies between three and 50 employees, who benefit from strategic advising via experienced mentors and professionals, and have access to a range of potential investors.

And with the sector on an upward trajectory, coworking is also welcoming new operators. Comerica Bank, for example, launched a $3 million flex office initiative, planning to repurpose 10,000 square feet into flex spaces.

What’s next for coworking?

In the year ahead, Whelan believes that the sector will find more stable ground and that the newfound business models—such as the one in which landlords and providers collaborate more as opposed to providers leasing the space themselves—will fuel supply growth. She noted that the term “coworking” needs to be broadened, as nowadays it includes so much more than just on-demand, short-term space. Flexible office suites now encompass both standalone offerings, as well as services within a coworking space, with access to shared amenities.

“Most enterprise users have a limited need for true coworking space,” said Whelan. “They’re usually looking for flexible space that gives them a level of branding and privacy while also offering more flexibility than a traditional 7- to 10-year lease.”

READ ALSO: Why Coworking Is Catching On

Kozelouzek expects more commercial real estate landlords to add flex products to their buildings’ offerings, such as team workspaces and more meeting rooms.

“We are already seeing several operators take off within the retail community, specifically related to health and beauty,” she said. “With industrial vacancies still tight, I’m expecting the idea of meeting small business needs of blended office, shipping and distribution flex spaces under a shared space model to gain popularity.”

Though there are multiple uncertainties today, one thing is for sure: The “one-size-fits-all strategy” will no longer be effective as shared economic structures strengthen their position in the sector. Strategies that mirror the hotel sector, that push operators to better segment their customers and bring value to targeted subsets of the market, will have a favorable outcome going forward, Wallace expects.

The post Coworking Trends to Keep an Eye On in 2024 appeared first on Commercial Property Executive.

Over the past 25 years, John Arenas founded three companies focused on meeting the evolving workplace landscape. Image courtesy of Serendipity Labs

As office demand continues to hurt due to many companies downsizing their footprints, an increasing number of landlords are embracing more collaborative and flexible spaces as the future of work. Catering to the growing need for adaptability in the workplace, the coworking sector remains at the forefront of this shift.

With almost 30 coworking spaces across the country and two locations in the U.K., Serendipity Labs provides landlords with flexible office solutions, creating hospitality-centric hubs that attract both tenants and their employees. Chairman & CEO John Arenas talked to Commercial Property Executive about the growing demand for flexibility—as opposed to long-term lease commitments—coworking market dynamics and the company’s growth strategy.

READ ALSO: Why Coworking Is Catching On

What are the main changes you noticed in the coworking industry in 2023? 

Arenas: The potential market size for coworking has grown significantly with tenant demand for flexibility and service, but it may take another 12 to 24 months for companies to move forward with these more strategic real estate decisions.

Early in 2023, the coworking market and, more broadly, the flexible office space market felt strong demand from companies looking to shift from conventional long-term office leasing into coworking upon lease expiration. They wanted to gain flexibility, higher service levels and better access to transportation.

However, by mid-year, landlords were feeling the dual challenges of falling demand and rising costs of debt. They have become quite aggressive with renewal terms to keep tenants in place, even if with less space for a year. This has tempted companies that otherwise have thoughtful strategic plans toward outsourced workplaces to simply kick the can down the road once more by extending leases for short periods. We believe this only delays the inevitable move to an outsourced workplace for workspace requirements for under 100 employees per site.

What would you say are the top three trends in the flexible office space market today? 

The Ideation Studio at Atlanta Perimeter Center is dedicated to larger team meetings. Image courtesy of Serendipity Labs

Arenas: New workplace dynamics have led to companies using coworking in new ways: higher desk-worker ratios, meeting and training use only, and programs that encourage drop-in work. Employees tend to be in the office less frequently and when they are it’s to collaborate, meet up, drop in, socialize and train.

A requirement for 50 people can be satisfied by a dedicated space with 25 or fewer desks. This same 50-person requirement would have been shopping for a 10,000-square-foot, 10-year lease in the past.

How has Serendipity Labs maintained and/or grown its presence in the coworking market? 

Arenas: Serendipity Labs has been focused on being an inviting compliant outsourced workplace, which is a stronger value proposition than flexible desk rental. Our focus on suburban and secondary markets has put us in a good position to support distributed and remote work. The biggest advantage we have had is that the owners of each location are typically the landlords, for whom we manage and operate the coworking facility for a fee.

When a member signs with us, it is on our membership agreement. They get flexibility, service and access to a growing network of outsourced workplaces, but they are signing an agreement with the landlord. That’s a model many members like.

Since we manage the location for the landlord, member agreements are facilitated by us, but the counterparty is the landlord. We assume duty of care responsibilities for employees. Our IT platform is HIPAA, Sarbanes-Oxley, FINRA and e-commerce compliant. Another feature members prefer.

READ ALSO: As Hybrid Work Expands, Coworking Is No Longer the Exception

Each location is typically 25,000 to 40,000 square feet and serves a mix of companies that include high credit quality corporate accounts and regional businesses—companies that are subject-matter experts. By strategy and design, we have little exposure to any single industry or sector. Our locations are stable. If one industry hits a tough spot, the broad mix of members helps to balance it out.

There are coworking companies that attempted to ‘blitz-scale’ their businesses to satisfy venture capital investors. They signed traditional leases for locations concentrated in urban locations, at historically high rates. Often, they sublet to a single fast-moving company. When that company came to the end of its membership term, the coworking company was left with an entire empty location. That business model has had a day of reckoning.

In 2022, Serendipity Labs expanded its portfolio by 25 percent by adding new locations across the U.S. and the U.K. How was 2023 for your company? Have you grown your portfolio?

Denver LoDo Serendipity Labs offers a mix of private and team offices, as well as events space. Image courtesy of Serendipity Labs

Arenas: We’ve continued to grow by building new locations in the U.S. and U.K. This growth is also coming from landlord requirements to take over and convert coworking space that has come back to the landlords. While most of these are in urban centers, they are well located near major transportation and can serve as our ‘hub’ location in our hub-and-spoke network growth strategy.

Can you share a few details about the main locations you’ve added to your portfolio recently? 

Arenas: Our strategy is to build a hub-and-spoke network of locations that can serve as a contiguous, trusted workplace where employees need to do work that day, meet as a team, and still be close to home.

We’ve recently added Cambridge. U.K., a suburb of London; Brentwood, Tenn., a suburb of Nashville; Nexton, S.C., a Charleston suburb; and Plano, Texas, a suburb of Dallas. They are all expansions to existing Serendipity Labs regional networks. Dublin, Calif., is our first in the Silicon Valley/San Francisco area.

Our 42nd Street location in Manhattan is steps from Grand Central, part of our most established, interconnected network. We have eight locations in the NY-Tri-State area, all near transportation hubs.

READ ALSO: Focus on Flexibility: Navigating NYC’s New Office Landscape

Tell us more about your tenant base. What strategies do you employ to attract tenants from different sectors? 

Serendipity Labs Grand Central comprises 41,000 square feet of flex office space near NYC’s Grand Central Terminal. Image courtesy of Serendipity Labs

Arenas: We attract companies of all sizes, with about 50 percent coming from large- to mid-size companies, 30 percent from regional and professionals, and about 20 percent from small or fast-moving companies.

We have a powerful digital marketing platform that delivers more than 70 percent of our inquiries. In addition, we have a strong central corporate account and regional sales teams that call directly on customers and their advisors to enable their workplace strategies across our network of locations.

In a previous interview, you mentioned that Serendipity Labs offers flexible workspaces that foster connection, collaboration and focus. How do these concepts reverberate throughout the amenities spaces at your locations?   

Arenas: Each location is designed with a 40-person Ideation Studio, Meetup Rooms and Board rooms that foster collaboration. Our locations also offer a work lounge and lab café to encourage drop-in work and casual meetings, and all serve to create a serendipity engine of sorts, as people engage and connect.

What are your thoughts on the future of coworking?

Arenas: I’ve been working in this flexible office industry leading companies for almost 30 years, through major economic shocks, global crises and disruption, but the future has never been brighter for coworking.

The workforce has fundamentally and permanently changed how they want to consume office space and workplace services. They want to be able to make good choices based on what work needs to be done and have been liberated from the myth and cult of the office in which presence was the primary measure of performance.

The post The Future Has Never Been Brighter for Coworking, Says Serendipity Labs CEO appeared first on Commercial Property Executive.

1660 Lincoln St. rises 31 stories in downtown Denver. Image courtesy of CommercialEdge

New York-based flexible office provider Coalition Space will open a new coworking location spanning 16,000 square feet in downtown Denver. The firm signed an agreement with landlord Westport Capital Partners for the space at 1660 Lincoln St., slated to open in January 2024.

The location will be on the building’s 20th floor and will comprise flexible desks, dedicated desks and private offices, along with conference rooms. Amenities at the dog-friendly location will include a fitness center, coffee shop, arcade and an equipped kitchen.

Completed in 1972, the building spans 274,582 square feet across 31 stories. The owner acquired it in 2018 for $67.2 million, according to CommercialEdge data. In 2021, the property became subject to a $53.5 million three-year bridge loan from Franklin BSP Realty Trust, the same source shows. Tenants at the tower include Unico, Mill Creek Residential and CIG.

Located in the metro’s downtown, 1660 Lincoln St. is close to the Metropolitan State University of Denver and St Joseph Hospital. It is also within walking distance of the 16th Street Mall.

As of November, Denver’s vacancy rate reached 21 percent, representing a 2.3 percent year-over-year increase and above the national figure of 18.2 percent, according to a recent CommercialEdge report. The average listing rate in the metro was $30 per square foot, marking a 1.3 percent increase over 12 months and below the national average of $38, the same source shows.

The post Coalition Space Enters Denver With Downtown Location appeared first on Commercial Property Executive.

4750 S 44th Place spans nearly 80,000 square feet in suburban Phoenix. Image courtesy of CommercialEdge

Industrial coworking firm Loloft has signed a leasing agreement with Workspace Property Trust for 51,902 square feet at 4750 S. 44th Place in Phoenix. Member move-ins will commence in 2024’s second quarter, while preleasing is already underway.

The location will provide a mix of shared micro-warehousing and coworking space, with available spaces ranging from 125 to 1,500 square feet. Amenities at the property will include 24-hour access, reception with guest check-in, mail handling, kitchen and common-area workspace.

Completed in 2007, the property spans 79,496 square feet and is part of the larger Cotton Center business park, which encompasses 12 buildings totaling more than 1.2 million square feet—according to CommercialEdge data. It is wholly owned by Workspace Property Trust, which acquired the building in 2016, the same source shows. In 2018, 4750 S. 44th Place became subject to a $15.3 million loan from Wells Fargo Bank.

Located near Interstate 10, the building is roughly 8 miles from downtown Phoenix, less than 5 miles from Phoenix Sky Harbor International Airport and some 4 miles from Tempe, Ariz. The property marks Loloft’s second venture. The company was founded in 2021 and debuted with a location in downtown Rogers, Ark. Its growth plans call for an expansion into markets such as Minneapolis, Kansas City, Portland, Ore., and Tampa, Fla.

The post Industrial Coworking Firm Inks 52 KSF Lease in Phoenix appeared first on Commercial Property Executive.

The Connell Co.‘s $400 million project in Berkeley Heights, N.J.—The Park—is transforming a cluster of office properties built in the 1980s into a mixed-use development that aims to “bring the city to the suburbs,” as Executive Vice President Shane Connell puts it. Once completed, the 185-acre corporate park will encompass 1.5 million square feet of office space, 300,000 square feet of retail, a hotel and 328 apartments, as well as four parks, and bike and walking trails. 

Round Table Studios at The Park encompasses 44,000 square feet of coworking space with private offices, conference rooms and curated amenities. Image courtesy of The Connell Co.

The Park is already home to Round Table Studios, a 44,000-square-foot boutique coworking space, designed by Gensler and David M. Sullivan Design, spanning two floors and offering a wide range of amenities. Besides 11 conference rooms for up to 30 people, private offices and studios, and modern meeting spaces, Round Table Studios provides access to a fitness center, curated meal plans, a library and a social club, combining a hospitality-centric approach with much-needed flexibility for a healthy work-life balance.

In this interview with Commercial Property Executive, Connell talks about the vision behind the coworking location, highlighting its wellness features and the amenities that cater to office users’ dynamic lifestyles.

READ ALSO: New Life for a Landmark NYC Warehouse

How did you come up with the Round Table Studios concept and what inspired your focus on lifestyle amenities and curated services?

Shane Connell describes The Park as a way to bring the city to the suburbs. Image courtesy of The Connell Co.

Connell: As the industry navigates a widespread transformation of the traditional office concept, RTS and The Park are reimagining the typical work environment by facilitating a more balanced lifestyle for our members. As an integral aspect of The Park’s campus, RTS was established as part of our mission to deliver a productive, social, healthy and inclusive work solution that meets the expectations of today’s top companies.

RTS supports our efforts towards this vision by delivering tech-forward meeting room options, short-term flexible work solutions, and social activations for the community. Further, the collection of unique lifestyle amenities and curated concierge services featured at RTS (and at The Park) helps promote employee well-being and satisfaction.

Tell us some details about the layout of the space and the main amenities members have access to. 

Connell: The Social Club, the main communal space of RTS, is outfitted with custom-made furniture, task tables and a library complete with a hand-picked selection of literature. The Social Club offers members a quiet working space before transforming into a lively community gathering hub in the evening.

RT Farm, our workplace cafe and bar, provides a unique blend of dining and workspace, featuring striking design elements, including a custom-made stone bar. During the workday, members can enjoy barista-prepared espresso drinks and choose from a variety of fresh, nutritious food options. In the evening, the space is used for cocktail happy hours. Along with hosting other social, fitness and wellness activities, RT Farm regularly invites members to gather and enjoy family-style dinners on ‘Supper Club’ nights.

The second-floor Loft provides members and their guests with a light-filled flexible space furnished with task tables, large booths, a library annex as well as a multifunctional social gaming area with a pool table. Additionally, the Loft is conveniently adjacent to the Stadium Seating area which provides the ideal setting for open-air meetings and cultural discussions with built-in custom lighted task seating.

What coworking options and plans does RTS offer to its members, and what is the tenants’ profile?

Connell: We cater to a variety of member needs, offering monthly social and fitness memberships for individuals at The Park and short-term, flexible work memberships for both individuals and companies at RTS.

Our tenants at RTS range from individual employees and independent business owners to Fortune 500 companies desiring a modern, highly amenitized workspace along with access to The Park’s abundance of social and state-of-the-art fitness offerings.

What are the top three things that differentiate RTS from other boutique coworking spaces available within the New Jersey area.

Connell: RTS sets itself apart by delivering a diverse array of carefully programmed social and wellness offerings, elevated bespoke spaces designed for easy collaboration and an exceptional selection of dining options—all of which are supported by the work of our hospitality, wellness and fine dining teams.

In your view, what role does the green campus where RTS is located play in the growing demand for coworking space? 

The 185-acre campus comprises three miles of walking and bike trails and four parks. Image courtesy of The Connell Co.

Connell: As modern work patterns evolve, driven by advancements in technology and shifts influenced by the pandemic, companies are increasingly seeking best-in-class office solutions that foster a balanced, healthy work-life environment for their employees. The range of amenities and services at RTS, akin to those typically found in five-star hotels, reflects this market demand and helps companies attract and retain top talent in a location accessible to the area’s in-demand workforce.

Our green campus exemplifies our commitment to sustainable design, one of our guiding principles. At RTS and The Park, we make a concerted effort to merge sustainable infrastructure, like solar canopies and electric car charging stations, with health-focused, eco-friendly amenities—including landscaped walking paths and a bike share program—in recognition of the importance of implementing sustainable practices to safeguard the future of our planet.

What specific lifestyle amenities and services at RTS contribute to employee well-being and work-life balance?

Connell: As part of our comprehensive wellness program, we have an onsite fitness center, FIELDHOUSE, with access to top-notch facilities that can be utilized both during and outside of the workday and a dedicated onsite nutritionist who offers personalized nutritional coaching and hosts nutrition classes. We also offer an array of nutritious food options on campus. RT Farm offers convenient grab-and-go choices, and our Parklife Meals program caters to the varying needs of individuals, ensuring everyone’s unique dietary requirements are met.

The Park’s location within a sprawling green campus grants members access to complementary bike rentals and scenic walking trails. We believe that connecting with nature is essential for overall well-being and encourage members to take advantage of these outdoor options. Beyond physical health, we also value the importance of social connections, which is why we host a vibrant social activation calendar, designed to bring our community together and foster new connections among members.

READ ALSO: Evolving Workspaces—Tips for Modern Organizations

Please expand on the features that enhance employee productivity and improve their overall satisfaction.

Grab-and-go and curated meals through ParkLife, designed by culinary artists from Table & Banter. Image courtesy of The Connell Co.

Connell: Parklife Meals was created to fulfill the need for more healthy meal options that promote convenience and cater to employees’ health aspirations. Taking cues from the prepared meal delivery services that have grown in popularity across the country, Parklife Meals enables tenants and guests to enjoy dietician-approved, fully prepared meals, which are available for pick-up and accessible for order via an app that provides full nutrition details. The Park’s level of service and amenities helps our tenants be productive in their work environment by fostering a holistic work-life balance.

What aspects did you consider when designing the fitness center, and how does it complement the overall coworking experience?

Connell: When designing FIELDHOUSE, our 12,000-square-foot boutique fitness center and game room, we wanted to keep in mind the holistic wellness experience. We wanted to offer both personalized training services, group fitness classes, and high-quality equipment for individual use, to provide options for all types of gym-goers. As a free amenity for 200 tenants, including RTS members, we wanted to offer a fitness space that is welcoming while also being state-of-the-art.

As a result of FIELDHOUSE’s success, we plan to open a second FIELDHOUSE location that’s open to the public at The District, a mixed-use development consisting of five new buildings and 190,000 square feet of retail and dining within a central pedestrian corridor, that will transform the campus as a dynamic place for its tenants and an attractive destination for the surrounding communities, when it’s complete.

Can you share a few details about the type of social events organized here? To what extent do they contribute to fostering connections and a sense of community among members?

Connell: As the office ‘amenities arms race’ continues, events and services are becoming a critical part of the success equation. With this evolution in mind, The Park hired its first social experience curator—aka Chief Fun Officer—Susan Labunski, who facilitates an array of activities ranging from nutrition planning and fitness classes to themed dinner parties to activate The Park’s on-campus amenities and create social experiences that employees will look forward to before, during and after their workday.

Our goal at RTS is to foster a strong sense of community among our members. Indoors, we offer communal dining, workspaces, lounges, conference rooms, and phone booths. Outdoors, covered work and dining areas complement the offerings.

READ ALSO: CANOPY’s CEO on the Growing Demand for Boutique Coworking Spaces

FIELDHOUSE provides access to team-building events focusing on wellness and fitness. Image courtesy of The Connell Co.

Our programmed features and activities include daily happy hours at RT Farm, and scheduled fitness and wellness classes such as group circuit training, meditation and yoga. Additionally, engaging group activities like boxing, walking and running clubs are part of the monthly social calendar. Supper club dinners, game nights, dance classes, book clubs, and food truck evenings bring members together. To keep everyone in the loop, we make activity updates easily accessible through our RTS lobby and Park app, ensuring that no one misses out on the fun. We also offer to organize private corporate team-building events, tailored to meet specific team dynamics and objectives.

Are you planning on opening similar boutique coworking spaces in other markets? If so, which ones are you targeting?

Connell: We present an elevated coworking solution that goes beyond conventional offerings. Our unique approach seamlessly integrates social, wellness, culinary, and the workspace, creating a comprehensive hospitality solution for any large office building or campus development. As we continue to grow, we are open to extending our model to new locations across the country.

The post When Coworking Meets Hospitality: A New Jersey Success Story appeared first on Commercial Property Executive.

Building 78 at Kearny Point dates back to the 1930s. Image courtesy of Premier Workspaces

Premier Workspaces has opened a new coworking location in Kearny, N.J. The firm will operate at Building 78 of the Kearny Point business park, owned by Hugo Neu, according to CommercialEdge data.

The location encompasses private offices for one to five individuals, along with dedicated desks and hot-desking options, as well as rooms for meetings and conferences. Amenities at the pet-friendly location include free on-site parking, a fitness center and an EV charging station.

Completed in 1930, Building 78, along with the adjacent Building 82, span a total of 200,000 square feet and represent the main office component of the Kearny Point business park. In 2021, they became subject to a $44 million loan from Prudential Financial Insurance Co., according to CommercialEdge. Other tenants at the property include ARECO, Adventii Media and Sigma Technologies, the same source shows.

Located at 78 John Miller Way, Kearny Point is close to Highway 9, being some 6 miles from Jersey City and 8 miles from New York City. It is also 8 miles from the Newark Liberty International Airport and less than 2 miles from the Hudson Mall.

As of October, New Jersey’s office vacancy clocked in at 17.5 percent, slightly below the national rate of 17.8 percent, according to a recent CommercialEdge report. The market registered a 10-basis-point increase in vacancy on a year-over-year basis. The average listing rate stood at $34.6, below the $37.77 national figure and growing 4.4 percent over 12 months, the same source shows.

The post Premier Workspaces Opens New Jersey Location appeared first on Commercial Property Executive.

Flexible office provider Quest Workspaces will open a new coworking space in Miami spanning three floors. The firm will occupy 40,820 square feet at the CP Group-owned Miami Tower, in the metro’s CBD. This marks the company’s fifth location in the metro and 11th in the state.

The new flex-office space will open in multiple phases, with the first one on the 20th floor, debuting on November 1st. It will be followed by the opening of the 38th floor in the spring of 2024, and the opening of the 37th floor in the beginning of 2025. The locations will feature a total of 173 offices and amenities including a nap room, a treadmill room, meeting rooms and cafés with unlimited coffee, water and tea. Members will also have access to building facilities such as a fitness center and sky lounge.

Completed in 1987, the building spans 619,093 square feet across 47 stories. It underwent a full cosmetic renovation in 2012. The property also encompasses more than 19,000 square feet of retail space and parking space on floors two through 10. The owner acquired the asset in 2022 for $163.5 million, using a $101 million loan from Prudential Financial, according to CommercialEdge data. Tenants at the property include a variety of finance and law firms, the same source shows. Flexible office provider Premier Workspaces also operates a location in the building.

Miami’s coworking scene

Located at 100 SE 2nd St., the property is in the heart of downtown Miami. It is close to the Bayfront Park and across the street from Ultramont Mall. It is also near multiple transportation options, including the Knight Center Metromover Station situated within the building.

As of April, Miami had the largest share of flexible office space among all gateway cities, reaching 3.3 percent of its total leasable office space, a recent CommercialEdge market update shows. Quest Workspaces was the second-largest operator in the metro with some 2 million square feet at the time, according to the same source. Recently, the company has increased its footprint in Boca Raton, doubling the space of one of its locations.

The post Quest Workspaces Expands Miami Footprint appeared first on Commercial Property Executive.

Kierland Commons last traded in 2011 for $103.5 million. Image courtesy of CommercialEdge

Industrious has opened a new 27,263-square-foot coworking space in Scottsdale, Ariz. The firm occupies the space at Kierland Commons, a mixed-use building owned by Macerich. This marks the flex office provider’s sixth location in the state and the third in Scottsdale.

The space encompasses 95 offices featuring 414 desks, along with three suites and more than 10 conference rooms. Amenities at the location include a wellness room, 24/7 access, unlimited color printing and weekly happy hours.

Rising eight stories, the LEED Silver-certified building spans 466,700 square feet, including 342,488 square feet of retail space and 84 residential units. Macerich acquired it in 2011 for $103.5 million, according to CommercialEdge data. In 2017, it became subject to a $225 million loan from Northwestern Mutual, the same source shows. Tenants at the property include various retail firms and medical office companies.

Phoenix’s flexible office market

Located at 15051 N. Kierland Blvd., Kierland Commons is roughly 10 miles north of downtown Scottsdale and some 20 miles from Phoenix. Situated within a walkable area, the building is also less than 2 miles from Scottsdale Airport.

In a recent interview, Industrious CEO & Co-Founder Jamie Hodari told Commercial Property Executive that mixed-use neighborhoods are typically the best markets for coworking locations. He added that the company’s current strategy may push the flex office provider towards non-traditional office submarkets.

As of July, Greater Phoenix had approximately 2.3 million square feet of coworking space, accounting for 1.5 percent of the total rentable office space, according to a recent CommercialEdge market update. Industrious was the third largest flex office provider in the metro, with 139,800 square feet in its operational inventory, behind WeWork and Regus, the same source shows.

The post Industrious Grows Phoenix-Area Footprint appeared first on Commercial Property Executive.

JP Morgan Asset Management is the owner of 10080 N. Wolfe Road. Image courtesy of CommercialEdge

Flexible office space provider Pacific Workplaces will open a new coworking space in the San Jose-area, at 10080 N. Wolfe Road in Cupertino, Calif. The company will occupy 14,928 square feet at the property and will relocate from its current space at 19925 Stevens Creek Blvd. The new location is scheduled to open in December 2023.

Completed in 1972, the building rises three stories and spans 59,915 square feet. It is owned by JP Morgan Asset Management, which acquired it in 2012, CommercialEdge data shows. Other tenants at the property include Celona and Silver Lake, the same source shows.

The new Pacific Workplaces location will comprise 50 private offices, along with 10 meeting rooms and an open coworking area featuring both dedicated and flex desks.

The building is located near Interstate 280 and roughly 9 miles from downtown San Jose. It is in the heart of Silicon Valley, close to the Apple Campus and within walking distance of the Main Street Cupertino shopping mall, as well as other retail and entertainment options.

Pacific Workplaces operates a total of 18 coworking locations across the states of California, Nevada and Arizona. The flex office provider has been active in the Bay Area, having recently renewed its lease for a 14,090-square foot location in Pleasant Hill, Calif., after debuting another one in San Francisco at the beginning of the year.

The post Pacific Workplaces to Open Silicon Valley Coworking Location appeared first on Commercial Property Executive.

1030 Music Row is Nashville’s first mass timber office building. Image courtesy of Ampersand Studios

Miami-based flexible office provider Ampersand Studios has opened a 26,000-square-foot coworking location in Nashville, Tenn. The firm signed an 11-year lease with Northwood Investors at 1030 Music Row in November 2022, the agreement being brokered by Colliers.

Ampersand will occupy the building’s second floor. The location will feature private offices for teams between two and 25 members, along with creative spaces, such as a content room, a casting studio, a photography studio, video production studios and production offices. Elmington Capital is another tenant at the property, according to CommercialEdge data.

Completed in 2022, the five-story property is Nashville’s first mass timber sustainable office building. It spans 126,000 square feet and features 26,000-square-foot floorplates. Northwood acquired the asset last year for $55.2 million, the same source shows. Located at 1030 16th Ave. S. within the Music Row neighborhood, the building sits some 2 miles from downtown Nashville, in an Opportunity Zone.

As of February, Nashville had 629,000 square feet of confirmed coworking space and 1.4 million square feet of allocated space across 69 locations, representing 2.4 percent of the total rentable office space, according to a CommercialEdge market update. Serendipity labs recently expanded its footprint in the metro, opening a new 33,000-square-foot flex office location.

The post Ampersand Studios Opens Nashville Coworking Location appeared first on Commercial Property Executive.

Across 11 locations, Quest Workspaces has a 92 percent average occupancy rate. Image courtesy of CommercialEdge

Flexible office provider Quest Workspaces is adding 20,844 square feet of coworking space in Boca Raton, Fla. The new space will span a full floor at 1200 Corporate Place, where the company already operates a 21,120-square-foot location undergoing renovation.

Upgrades to the original space are slated for completion in November. The building is owned by Conshohocken, Pa.-based Keystone, according to CommercialEdge data.

The new location will include amenities such as a nap room, five meeting rooms, a private treadmill room and gym, as well as access to events and refreshments. In total, Quest Workspaces occupies 41,964 square feet at the property, making it the building’s largest tenant. Other tenants include Commercial Finance Partners, Bank Rome and Techila Global Services, CommercialEdge information shows.

Completed in 1984, the four-story building totals 137,021 square feet and is undergoing property-wide renovations set to wrap up next year. Located at 1200 N. Federal Highway, the building is close to Interstate 95 and roughly 22 miles north of Miami. It is also within walking distance of the Hollywood Beach Golf Club and some 3 miles from the Hollywood Beach Boardwalk.

A growing suburban coworking market

There is a growing trend of coworking locations in suburban areas, Quest Workspaces Founder & CEO Laura Kozelouzek told Commercial Property Executive in a recent interview. These suburban workspaces allow employers to save money and provide employees with shorter commutes. The company is currently focusing on expanding its South Florida footprint, said Kozelouzek. That expansion also includes two locations in Doral and Coral Gables, which will open within six months.

The post Quest Workspaces Adds to Boca Raton Location appeared first on Commercial Property Executive.

This is the second Flex by JLL location opened at a space owned by JBG SMITH. Image courtesy of CommercialEdge

Flex by JLL has opened a 39,000-square-foot coworking location in Arlington, Va., under the Orchard Workspace by JLL brand. The flex office provider will occupy the space at a 398,329-square-foot building owned by JBG SMITH.

JLL Property Management’s Flex by JLL team will manage and operate the space, that will feature team suites for up to 50 members, private offices accommodating between one and 35 people, virtual office plans and meeting rooms. Members will also have access to building amenities, such as an on-site child care center, sport club, cafes and dry cleaning facilities.

Completed in 1990, the 11-story building has 40,000-square-foot floor plates and is LEED Silver certified. Other tenants at the property include Huntington Ingalls Industries and U.S. General Services Administration, according to CommercialEdge data.

Located at 2451 Crystal Drive, in Arlington’s Crystal City neighborhood, the property is off Highway 1, roughly 5 miles from downtown Washington, D.C., and 4 miles north of Alexandria. It is also directly adjacent to the Ronald Reagan Washington National Airport and surrounded by numerous retail options.

Demand for coworking space is still strong

The addition of this location expands the company’s footprint in the region, joining the one in Reston, Va., and with plans for further growth in the area, Head of Flex and XM by JLL Jacob Bates stated in prepared remarks. In a recent interview, Bates told Commercial Property Executive that demand for enterprise-grade flex office space is expected to keep growing in the near future. He also mentioned that 93 percent of JLL’s corporate occupier clients use coworking spaces.

The post Flex by JLL Opens DC-Area Coworking Space appeared first on Commercial Property Executive.

555 Belaire Ave. Image courtesy of CommercialEdge

Flex office provider Venture X has signed a 18,543-square-foot lease agreement with HMP Properties to open a coworking space in Chesapeake, Va. Cushman & Wakefield | Thalhimer brokered the deal on behalf of the tenant.

The building at 555 Belaire Ave. is part of the Summit Pointe mixed-use development. The flex space will comprise private offices, dedicated and shared desks, meeting rooms and virtual office plans. Amenities will include notary services, on-site community staff, mail service and a café and lounge area.

Completed in 2020, the six-story building spans 160,000 square feet, offering 25,000-square-foot floor plates and 9,556 square feet of retail space, according to CommercialEdge data. The tenant roster comprises LifeStance Health and a number of law firms, according to the same data provider.

Located in the Greenbrier Central Business District, the 69-acre Summit Pointe development currently includes a Dollar Tree Inc. campus, residential units, office and retail space. Upon completion, the project is slated to yield 500,000 square feet of retail space, some 250,000 square feet of hospitality and conference space, along with more than 1,400 residences.

The 555 Belaire Ave. building is adjacent to the Sentara Greenbrier Healthplex, provides access to Interstate 64 and sits roughly 5 miles from central Chesapeake. It is also some 10 miles south of Norfolk and 20 miles from Virginia Beach.

Cushman & Wakefield | Thalhimer Senior Vice President Robert Wright represented Venture X in the leasing agreement. The flex office provider currently operates more than 50 locations globally. Most recently, the firm opened a 19,000-square-foot space in suburban Chicago.

The post Venture X to Open Virginia Coworking Space appeared first on Commercial Property Executive.

Chris Okada, CEO, Okada & Co. Image courtesy of Okada & Co.

Today’s tenants are shaping the future of office spaces, as well as landlords’ approach to operating properties. The need for flexibility, an improved work-life balance and community-driven workspaces are all fueling the growth of the coworking sector, including in hubs like New York City.

The metro has emerged as the top market with the most coworking spaces in the country, reaching 594 locations as of December, according to a CoworkingCafe report. Although most of these spaces are concentrated in Manhattan and Brooklyn, flexible workspace providers are also opening new locations in other NYC areas, while office landlords are reevaluating their strategies for traditional office space.

With more than $1 billion in commercial real estate sales and a portfolio encompassing 2.5 million square feet, Okada & Co. has been active in NYC’s office market for more than two decades. For CEO Chris Okada, real estate is a family business, with his father immigrating from Japan to the U.S. back in 1967 and starting a real estate company soon after. Okada has now successfully navigated through three challenging periods for the commercial real estate market—9/11, the financial crisis of 2008 and the pandemic—so we asked him to expand on what is driving the office sector today, and also touch on the factors that will likely shape NYC’s office landscape in the years to come.

READ ALSO: Demand for Suburban Flex Office Is Intensifying

Work culture has changed dramatically in the past few years. How has that impacted demand for NYC office space?

Okada: The COVID-19 pandemic has undoubtedly transformed the way people work. Remote work and hybrid schedules have become the new normal, with many companies allowing their employees to work from home on a full-time or part-time basis. This shift has challenged the traditional way of working—a change that, on an individual level, has led to increased productivity, reduced commuting time and cost, and a better work-life balance.

For companies, it has created the opportunity to access a larger pool of talent from different locations as well as reduced overhead costs by minimizing their office footprint or eliminating the need for a physical office space altogether. That said, while the demand may ebb and flow, I wholeheartedly believe that there will always be a need for office.

Which NYC submarkets are registering the highest demand, for both standard office and coworking spaces? What can you tell us about vacancy rates across the metro?

Okada: Office vacancy rates in NYC are currently averaging around 16.1 percent, compared to the pre-pandemic rate of 11 percent. A few neighborhoods in Manhattan where you’ll currently find the highest office vacancies include the Financial District and Times Square, but Chelsea and the Flatiron District are registering the highest demand.

With the rise of remote work and flexible schedules, how do you see the future of traditional office spaces in NYC, particularly in Manhattan?

A 45,000-square-foot office building at 111 W. 24th St. in Midtown Manhattan owned and operated by Okada & Co. Image courtesy of Okada & Co.

Okada: As the needs and preferences of businesses evolve, traditional office spaces in Manhattan will likely adapt to meet the changing demands. This may include incorporating more flexible layouts, communal spaces, advanced technology infrastructure, and amenities that enhance employee well-being.

Office landlords and companies who opt for a physical space are increasingly exploring creative solutions to cater to the evolving needs of businesses in a post-pandemic era. For example, permanent desks are becoming less popular as companies adopt ‘hoteling’ models, essentially creating internal coworking spaces for their employees.

I’ve seen companies split weekdays among departments—the accounting department works in the office Monday, Wednesday and Friday while the marketing department takes Tuesday and Thursday, for instance. Both departments share the same desks, allowing companies to cut space anywhere from 30 to 50 percent.

Please expand on the specific factors contributing to the rise of flexible workspaces in NYC’s competitive market.

Okada: A host of factors are contributing to the rise of flexible workspaces in New York City’s competitive market including evolving work culture, cost efficiency, scalability, networking opportunities, amenities and services, remote work adoption, and advanced tech infrastructure.

One of the primary factors is cost efficiency. NYC’s commercial real estate market is known for its high rents and operating costs. Flexible workspaces provide a cost-effective alternative to traditional office leases. Businesses can opt for shared workspaces, coworking spaces, or serviced offices, paying only for the space they need and avoiding long-term commitments. This cost efficiency is particularly attractive for startups, freelancers, and small businesses looking to establish a presence in Manhattan without incurring significant overhead expenses.

As these contributing factors continue to shape the modern workplace, coworking spaces provide a dynamic and adaptable solution for businesses in NYC seeking flexible office arrangements.

READ ALSO: Why Having a Workplace Strategy Is a Must Today

In your opinion, how big of a role does adaptability play in the design and functionality of modern coworking spaces?

Okada: Adaptability is a fundamental principle in the design and functionality of modern coworking spaces. As the in-office experience has evolved over the past few years, many are seeking flexible layouts and multi-purpose spaces that can accommodate different work styles, varying team sizes, and suitable environments for both individual assignments and group collaborations.

As such, there has been an increase in the use of modular furniture, movable partitions and adjustable workstations that enable users to customize their workspace according to their specific needs. This adaptability enables professionals to work more efficiently, collaborate effectively, and thrive in a dynamic and evolving work environment.

Ease of access and comfort are also important aspects. What else are tenants seeking today?  

Coworking space at 25 W. 39th St. Image courtesy of Okada & Co.

Okada: As it relates to both coworking spaces and private office spaces, we’ve noticed an increase in the demand for turnkey offices and subleases. Tenants are increasingly seeking offices that come fully furnished and all they need to bring is themselves and their computers.

I have also seen an increase in tenants requesting private offices within a coworking space, which allows them to shut the door while also having access to the building’s amenities and services. These can include printing and scanning facilities, meeting room booking systems, on-site cafes or snack bars, wellness areas, and sometimes even childcare facilities. The adaptability of these amenities allows members to access the services they require, contributing to their overall productivity and work-life balance.

READ ALSO: A Glimpse Into NYC’s Booming Boutique Coworking Scene

What makes a good performing coworking space? 

Okada: While Okada & Co. does not directly represent a coworking space, we do represent landlords who offer these spaces as well as tenants who opt for a more flexible workspace. Understanding both the landlord and the tenant perspectives, we feel confident that the three main aspects that produce a top-performing coworking space are brand recognition, design and good location.

A well-established brand in the coworking industry can build trust and credibility among potential users. A recognizable brand with a positive reputation often implies a track record of providing quality services, which can attract professionals seeking reliable and reputable coworking spaces.

From functionality and efficiency to aesthetics and atmosphere, a well-designed coworking space provides areas that foster productivity and collaboration, and offer appealing color schemes, comfortable furniture choices, and an inspiring environment.

A coworking space located in a prime and easily accessible area attracts professionals who value convenience. A central location near transportation hubs, business districts, or major highways can reduce commuting time and provide easy access for clients or visitors.

Considering the latest shifts in the office sector induced by the pandemic, tech layoffs and now the overall economic uncertainty, how does the future of the NYC office market look like? 

Okada: Office has always been a driving force of the New York City economy, and as the ‘standard’ workplace evolves, the city will experience growing pains. This is evidenced by the number of office-related foreclosures, mortgage defaults, and deeds in lieu of foreclosure negotiations that have skyrocketed in 2023.

That said, while some companies may downsize, I do believe that companies will always need physical office space. Reports have shown that real estate, law and financial service firms have the highest in-person workplace attendance—three industries that are prevalent in New York City. These larger, more established companies are looking to lock in the current rates for a long time, signing upwards of 10-year contracts.

The future of offices in NYC will be shaped by various factors, including the rate of economic recovery, ongoing office-to-residential conversions, and the preferences of employers and employees. Flexibility, adaptability, and a strong emphasis on employee well-being are likely to be key drivers in the evolving landscape of office spaces in New York City.

The post Focus on Flexibility: Navigating NYC’s New Office Landscape appeared first on Commercial Property Executive.

1301 Mckinney St. Image courtesy of CommercialEdge

Industrious has opened a new 23,489-square-foot coworking space in downtown Houston. The firm occupies the space at 3 Houston Center, also known as Fulbright Tower, within the Houston Center Campus owned by Brookfield Properties. This marks the flex office provider’s second location in the metro.

The space encompasses 60 offices featuring 277 desks and 10 phone booths, as well as multiple conference rooms of different sizes. Amenities at the location comprise a wellness room, community events, daily breakfast, on-site staff and 24-hour access. Further building facilities include a fitness center and access to outdoor space.

Completed in 1982, Fulbright Tower rises 52 stories and spans 1.2 million square feet, according to CommercialEdge data. Other tenants at the property include Barclays, Axip Energy Services, Key Energy Services, Guggenheim, Wells Fargo and Rockcliff Energy, the same data provider shows.

Located at 1301 McKinney St., the high-rise is in the heart of Houston’s Central Business District, near Interstate 69 and adjacent to The Shops at Houston Center shopping mall. The building offers access to a range of public transit options, including the Red and Purple lines.

Industrious operates more than 160 locations across the U.S. and abroad. The company is focusing on a 35 percent annual growth rate in the current environment, Co-Founder & CEO Jamie Hodari told Commercial Property Executive in a recent interview.

The post Industrious Expands Houston Footprint appeared first on Commercial Property Executive.

Laura Kozelouzek, Founder & CEO, Quest Workspaces. Image courtesy of Quest Workspaces

Migration, hybrid work and the need for more flexibility continue to be the driving forces behind the growing demand for quality suburban flex office spaces. As developers continue to rethink and revive the suburbs, coworking operators are also adapting and expanding their portfolios to the suburbs. Today, 44 percent of the coworking inventory in the U.S. is in suburban areas, according to CoworkingCafe.

Quest Workspaces, a woman-owned shared workspace company founded in 2010, has been very active in the sector in the past few years. Founder & CEO Laura Kozelouzek, a veteran working in the coworking business since the 1980s, understood early on that flexible work models were not a passing trend. In the past 12 months, inquiries for Quest’s suburban spaces skyrocketed, so Commercial Property Executive asked Kozelouzek to reflect upon the recent shifts in the flex office industry caused by the changing work paradigm.

READ ALSO: What Makes a Good Flex Space Location—Industrious’ CEO Weighs In

How much have coworking spaces expanded into suburban markets in recent years?

Quest Workspaces Doral. Image courtesy of Quest Workspaces

Kozelouzek: Since mid-2022, the demand for coworking space in suburban markets has increased month after month. Companies are realizing the post-pandemic hybrid work model is here to stay, and suburban coworking spaces allow them to save money on smaller office spaces with more flexible lease terms. There is also a growing trend for employees to want to shorten their commutes and work closer to home.

For example, in Boca Raton, Fla., the suburb with the sixth-highest number of coworking spaces nationally, inquiries at Quest Workspaces grew by 215 percent, and occupancy rose by 4 percent. At our Plantation, Fla., location inquiries grew by 150 percent, while occupancy increased by 9 percent over the same time period. At Quest Workspaces Doral, inquiries rose by 160 percent, and occupancy grew by 5 percent. 

Besides the increase in remote work models, what other factors have contributed to the growing demand for suburban flex office spaces? 

Kozelouzek: I attribute this to the fact that people are relocating to suburban areas to seek more affordable housing options and a better quality of life. Coworking spaces in suburban areas also provide employees with flexibility. Companies can create programs to support the way their employees want to work. Post-pandemic, there is an even greater desire for people to connect, get out of the house and have a sense of community. 

How many locations do you currently operate and what type of businesses use your spaces?

Kozelouzek: Quest Workspaces currently owns 13 locations in Florida and Manhattan, totaling 310,000 square feet of Class A commercial office space. Our tenant base is very diverse, from startups to global companies in every type of industry. Because of our high level of service and our ability to provide private offices, we have a high percentage of service firms in the legal and financial fields. Through our Quest Cares initiative, we also offer free and discounted workspaces, meeting rooms and services to qualified nonprofit and charitable organizations.

READ MORE: What Office Users Want in Flex Space Now

Please share a few things about your professional journey so far and the factors influencing the growth of Quest Workspaces over the years.

Quest Workspaces Tampa. Image courtesy of Quest Workspaces

Kozelouzek: I spent 19 years in the commercial real estate and hospitality industries as an executive at HQ/Regus, where I represented 80 locations and 5,000 customers, generating $180 million in annual sales. After that, I founded Synergy Workplaces in 2004, growing the company to 25 national locations and producing over $25 million in sales. 

Quest was a self-funded endeavor. I started the company with $50,000 and grew it organically—no debt or partners. Every location has been profitable since its opening—unlike other large coworking companies that raise a lot of money but aren’t necessarily making a profit or creating sustainable business models. The Quest company structure gives us a unique advantage over other organizations in that we can pass on cost savings to our clients.

I think one of the reasons we’ve thrived, particularly during a time of unprecedented rapid change, is because we’ve been working in the shared workspace industry for decades and have seen the ebbs and flows of the industry. We’ve seen how the needs of business owners have evolved as technology, the economy and other factors shift, and so we are in a better position to predict what we need to do to meet those needs in the midst of change.

Given your extensive experience, how much has the design and layout of flex office spaces changed throughout the years? 

Kozelouzek: When I started in the industry 35 years ago, shared office spaces were generic white boxes—very boring, open-plan spaces. With Quest, we began building spaces with personality, more of what you would experience in a restaurant or hotel lobby. Today, it is even more important to have an impressive design and create special spaces.

Coworking spaces also need to offer many different types of workspaces to give companies and their employees flexibility, depending on how they prefer to work. We find that having undisrupted private spaces is critical for most.

READ ALSO: CANOPY’s CEO on the Growing Demand for Boutique Coworking Spaces

How do you design your coworking spaces? What aspects are most important to you? 

Kozelouzek: We are so proud of our spaces and are excited to create, grow and connect in them. Quest locations are designed to bring people together, make them feel welcome, and inspire them to be productive and do their best work. We want to make a positive impact on everyone’s work and life, and that starts with the design and continues through the experiences we create with our people…

We want our locations to be unique and functional but also fun and comfortable. We also work to ensure our office spaces are equipped with lots of natural light by taking advantage of the windows and granting access to nature. We also incorporate biophilic design elements, which have been shown to increase productivity.

How do you plan to expand your portfolio? Are you targeting any specific markets for new suburban flex office locations?

Kozelouzek: We are currently focused on expansion in South Florida. That includes the urban and suburban markets. We have three new locations opening in the next three to six months: Boca Raton, Doral and Coral Gables.

How do you see the future of coworking spaces in suburban markets evolving? 

Kozelouzek: I see coworking continuing to gain momentum to the point that every office building, both in suburban and downtown markets, will have a coworking space. The need for flexibility in how employees work and their desire for experience, service, support and community will continue to grow.

The post Why Demand for Suburban Flex Office Is Intensifying appeared first on Commercial Property Executive.

Workbox Salt Lake City main entryway. Image courtesy of Workbox

Chicago-based flexible office provider Workbox will open a coworking space in downtown Salt Lake City. The firm will occupy the space at the historic Orpheum Theatre, taking over the location formerly managed by CommonGrounds Workplace. The expansion marks the company’s sixth venue and its first outside the Midwest.

The three-story location spans 19,972 square feet and encompasses 50 office spaces, with private offices featuring between one and nine desks. Amenities include private conference rooms, a shared kitchen with coffee bar, phone booths, a wellness room and color printing. Additional building facilities comprise showers, ski lockers and a complimentary shuttle to the mountain area nearby.

Built in 1905, the Orpheum Theatre is located at 132 S. State St., in the heart of downtown Salt Lake City. The building is close to Highway 89 and Interstate 15 and is within walking distance of multiple light rail stations.

Workbox CEO & Co-Founder John Wallace stated in prepared remarks that Salt Lake City’s booming startup industry and culture has attracted the flex office provider towards the area and out of its home region.

Over the next year, demand for coworking space is expected to rise significantly, as occupancy rates inch up to reach pre-pandemic figures, JLL Head of Flex and Experience Management Jacob Bates told Commercial Property Executive in a recent interview.

The post Workbox Enters Salt Lake City appeared first on Commercial Property Executive.

Jamie Hodari, CEO & Co-Founder, Industrious. Image courtesy of Industrious

Demand for flex and coworking spaces continues to grow at a fast pace, with occupancy rates nearing pre-pandemic levels due to persisting interest from both investors and tenants. As of April, there was 115 million square feet of shared office space in over 5,600 locations across the nation, according to CommercialEdge, and those figures will likely only improve as more providers enter the sector or expand their footprint.

One of the most active flexible workspace providers, Industrious, is currently operating a portfolio of more than 160 coworking locations across 65 cities around the country and abroad. Commercial Property Executive asked CEO & Co-Founder Jamie Hodari to talk about the strategy behind the company’s expansion, and growth plans in the current economic context.

READ ALSO: As Hybrid Work Expands, Coworking Is No Longer the Exception

The flex and coworking market has been driving the office sector’s bounceback. What are the main factors behind the growth of flex space?

Hodari: The main factors benefiting the flex sector are the overall shift in the way people work and the near-ubiquitous desire for more flexible work arrangements. Most people now prefer to work in an office a few days a week and want to find local, low-commute options. When they do take larger spaces, they want them to be turnkey and de-risked, which requires a flex provider to deliver.

Traditional offices are still struggling following the pandemic, and the current economic landscape is adding to its woes. How are your partnerships with office landlords evolving in the current dynamic?

Industrious North Loop, a 34,000-square-foot coworking space in Minneapolis. Image courtesy of Industrious

Hodari: One interesting dynamic at play between traditional office spaces and our work is the flight to quality that is evident in long-term leasing. However, the concept of ‘quality’ is often undefined. In our case, what matters most to tenants is having a dynamic, engaging workspace that people want to visit.

By collaborating with landlords to manage shared amenities and experiences within their buildings, we can enhance their overall appeal. The greeting experience, in particular, is a highly effective way to improve a building’s attractiveness. As a result, we have seen a significant increase in our work with landlords who are seeking thoughtful and impactful ways to upgrade their assets.

In a previous interview with CPE, you mentioned that lack of transparency was one of the main challenges in the coworking sector. Is that still the case? 

Hodari: When I mention the lack of transparency in this industry, I don’t mean it in a shady sense. Rather, I am referring to the fact that industries like airlines and hotels have access to large datasets because all providers agree to anonymously upload their data. This allows for information such as city-wide hotel occupancy rates or nightly rates to be easily accessible.

Unfortunately, we don’t have the same level of transparency in our sector. While it’s not a major challenge, I do believe that over time, especially if the industry shifts toward management contracts, it would be helpful to have more information sharing.

Industrious has been in the coworking market for a decade now. How would you describe your journey so far?

Hodari: Our entrepreneurial journey has been wonderful so far. Building a fulfilling and humane product and having my childhood best friend as a co-founder has allowed both Justin and me to enjoy the highs of entrepreneurship.

Industrious Downtown Minneapolis, a 20,000-square-foot coworking space in Minneapolis. Image courtesy of Industrious

Tell us more about the best performing coworking markets in your portfolio. What is behind their success? 

Hodari: The best markets and submarkets are typically mixed-use neighborhoods—places where people can both live, work and socialize in their downtime. These tend to be the most exciting for workers, regardless of their location. Whether it be in Asia, Europe, or the U.S., downtown areas with places to eat, drink, do karaoke and work tend to perform well, while those that are empty after 6 p.m. tend to be the weakest markets. This is a dynamic that many people are currently uninterested in.

READ ALSO: What Office Users Want in Flex Space Now

How do you choose your locations? What aspects do you pay attention to?

Hodari: Our approach differs from traditional leasing, where buildings crop up in submarkets that aren’t anyone’s first choice, yet companies would choose them to save a bit of money. With flex, people can ‘vote with their feet,’ which means we need to set up locations in submarkets where at least 50,000 people would choose to be over any other location. This means we may have locations in non-traditional office submarkets such as Crown Heights or Greenpoint in Brooklyn, rather than second- or third-tier commercial districts.

Industrious Harvard Square, a 21,550-square-foot coworking space in Cambridge, Mass. Image courtesy of Industrious

Since the beginning of the year, you’ve opened several new locations, including the ones in D.C., Charleston, S.C., Phoenix, and Cambridge, Mass. What makes those spaces stand out?

Hodari: The locations we have opened this year are like mini-15-minute cities in areas where people live, eat, socialize and work, and have access to quality restaurants, bars, or even yoga classes. We are excited about these locations because we have seen a strong early performance from these units.

You also told CPE at the end of last year that Industrious plans to add 1 million square feet of flex office space to its portfolio in 2023. How is that plan going? 

Hodari: We have growth plans that are both measured and aggressive. We believe in the growth potential of our sector and our product, but we are also risk-focused. Therefore, we aim for a 35 percent annual growth rate rather than 100 percent during uncertain times like these.

How do you expect the flex and coworking market to perform over the next quarters, considering the looming recession everyone is preparing for?

Hodari: I believe that the flex market will perform well in the coming quarters. However, flex providers with overexposure to mega spaces, where companies like TikTok or Amazon take an entire building, may experience some challenges as their members give back those spaces. Industrious, which focuses largely on fewer than 50-person spaces, will likely have a strong rest of the year.

The post What Makes a Good Flex Space Location: Industrious’ CEO Weighs In appeared first on Commercial Property Executive.

8 Cadillac Drive. Image courtesy of Serendipity Labs

New York-based flexible office provider Serendipity Labs will open a 33,000-square-foot coworking space in Brentwood, Tenn., a suburb of Nashville. The firm will occupy the third floor at one of the four buildings within the Creekside Office Park. The campus is part of the larger Maryland Farms mixed-use community, owned by The Brookdale Group.

The flex office location will encompass dedicated private offices, team private offices for groups of up to 10 people, as well as team suites for up to 100 people, board rooms, visual studios and accommodation for corporate events. On-site amenities comprise full-service hospitality staff, complimentary fruit and drinks, as well as quiet and wellness rooms. Tenants will also have access to building facilities including a fitness center, café and tenant lounge.

Located at 8 Cadillac Drive, the 129,000-square-foot building is just off Highway 254 and close to Interstate 65, while downtown Nashville is roughly 11 miles north. This is Serendipity’s second location in Nashville, after entering the market in September with a lease in the metro’s downtown.

Coworking space represents 2.4 percent of the total rentable office space in metro Nashville, according to a recent CommercialEdge market update. The data provider identified 69 locations totaling 629,000 square feet of confirmed space and 1.4 million square feet of allocated space.

The post Serendipity Labs Expands Nashville-Area Footprint appeared first on Commercial Property Executive.

Jacob Bates, Head of Flex and Experience Management, JLL. Image courtesy of JLL

Companies of all sizes have been growing their flex office footprints in the past few years. Today, providers are seeing improved occupancy rates approaching pre-pandemic levels, according to CommercialEdge data. CBRE research found that demand from medium- and large-sized companies is bound to help the flexible office market scale even further in the future. Meanwhile, JLL expects the amount of flex spaces to increase and the monetization of the product for investors to return to pre-pandemic levels or higher in 2023.

In order to minimize the under-utilization of space, corporate enterprise occupiers are increasingly adopting flex products and turning to core-plus flex models, which allow them to integrate both traditional and flex office space in their portfolios.

Jacob Bates, JLL’s head of flex and experience management, told Commercial Property Executive at the end of 2022 that he expects to see a rise in flex office suites as the primary workspace alternative over generic coworking, as well as a shift toward agility, experience and flexibility. CPE caught up with Bates, who shared more on the adoption of new product types in this ever-growing sector and the factors driving demand for flex spaces today. He also touched on how the company’s Flex by JLL network of flexible office and coworking spaces are performing.

READ ALSO: How Coworking Is Reviving New Orleans’ Office Scene

Why do you expect coworking to return to pre-pandemic growth this year? What are the arguments behind outlook? 

Orchard Workspace by JLL in Seattle. Image courtesy of JLL

Bates: Ninety-three percent of JLL corporate occupier clients use flexible space in some capacity, and 42 percent of real estate leaders plan to accelerate investment into increasing flex footprint throughout their portfolio. This will drive the need for more flex, especially enterprise-grade flex such as suites.

To what extent do you expect coworking to keep shaking up traditional office space rentals?  

Bates: It is less about shaking up traditional office space rentals and more about augmenting and expanding the product offerings beyond only traditional office. As occupiers look for more flexibility and experience, they are gravitating toward flex. Occupiers are evaluating their real estate portfolios from a core-plus flex strategy. They are keeping, extending, or even signing new leases for any locations—generally locations that are at least one full floor in size or larger—that fit their own core definitions and flexing into everything else.

What are the main aspects flexible workspace providers should focus on in terms of property management and business strategy to maximize their returns?

Bates: Flex is a strategic game of efficiencies and variabilities. This shows up in the user experience with the physical, emotional and experiential aspects of the product, term, space design and in how flexible workspace providers operate.

From your experience, what do office users expect from flex space offerings today? 

Orchard Workspace by JLL in Seattle. Image courtesy of JLL

Bates: Office users expect flexible terms, of course, but they are also expecting a full-service hospitable experience. Office users select flex to get term agility and the ‘easy button’ operationally. They are outsourcing their workplace experience and expecting the flexible workspace provider to deliver that experience. Similar to checking into a hotel, there is a level of expectation on the quality, experience and service you will receive.

Please expand on the new coworking products gaining traction due to growing demand for flex space.

Bates: As occupiers work their own core-plus flex strategies, they are finding a need for short-term, full-service, plug-and-play suites. Coworking is sharing an environment, amenities and experience with 50-plus companies. On the other hand, suites offer an occupier a propriety space environment that may be programmed for their business and talent while sharing some amenities, community and experience with five companies.

READ ALSO: CANOPY’s CEO on the Growing Demand for Boutique Coworking Spaces

Can you touch on the markets that are currently experiencing the highest demand and growth when it comes to coworking spaces?

Flex at Chesterbrook in Chesterbrook, Pa. Image courtesy of JLL

Bates: Most markets are experiencing a re-emergence of demand and growth. Flex pricing has corrected and has been rising since 2022 due to demand. We are seeing demand in major cities, such as Seattle, where we revived a former vacant WeWork location—now known as Orchard Workspace by JLL—currently outpacing our lease-up expectations.

We are also seeing demand in more urban, suburban cities such as Chesterbrook, Pa., where we have wildly outperformed on lease-up occupancy and pricing. Our tenant mix is a wide range of technology, financial services, biotech, startup, legacy brand companies, nonprofits and even schools.

How do you plan to expand your coworking footprint across the U.S.? 

Bates: We are supporting our investor clients in resurrecting former coworking locations within their buildings by helping them maintain control and influence over these flex spaces, financials and product offerings for their tenants and the community. We relaunch the locations, fill them up and operate them in partnership with our clients. Additionally, Flex by JLL is also advising owners within certain markets on building new flex locations and consulting them on product mix, experience, design, operations, financial modeling and valuations.

What are your predictions for the sector in the upcoming 12 months? How do you expect pricing to evolve?

Bates: We expect the large coworking operators will continue to right size and evolve their own business models. The demand for flex, especially enterprise-grade flex, will rise significantly. This will continue to have a positive influence on pricing in an upward mobility fashion as we have seen for the better part of the past 12 months. One example is Flex at Chesterbrook, where demand has been so strong that pricing is outperforming expectations.

The post What Office Users Want in Flex Space Now appeared first on Commercial Property Executive.

The Bowen Building. Image courtesy of CommercialEdge

The Square, Hines’ flexible workspace platform, will open a coworking location in downtown Washington, D.C. The firm will occupy space at the historic Bowen Building, owned by JPMorgan Chase and managed by Hines. The location is slated to come online this fall and is already 20 percent preleased.

The flex office space will encompass 30 offices and three suites, being able to accommodate up to 225 people. It will feature private suites for teams of more than 25 people and enclosed customizable offices for groups of up to 75 individuals, along with shared workspaces. The suites will have private amenities such as kitchenettes, printer stations and conference rooms.

The Bowen Building rises 12 stories and comprises 231,000 square feet. It was originally built in 1922 and most recently underwent renovations, soon after JPMorgan’s acquisition in 2018. Located at 875 15th St., at the corner of McPherson Square, the property is within walking distance of Lafayette Square.

This location will be The Square’s fifth flexible workspace worldwide and the fourth in the U.S. The company operates spaces in Houston, Salt Lake City and Mexico City.

Activity in Washington, D.C.’s coworking market started to decline in the fourth quarter of 2022, lagging other important gateway markets, as shown by a recent market update. Large operators are still making investments in the city, Industrious having recently opened its seventh location in the metro.

The post Hines to Open DC Coworking Location appeared first on Commercial Property Executive.

Image by Shridhar Gupta via Unsplash

Comerica Bank has launched Comerica Coworkspaces, a $3 million flex office initiative that will repurpose 10,000 square feet of existing banking space across nine Comerica locations. So far, the bank announced six coworking spaces in Dallas, two of which are already open.

All locations will feature Wi-Fi, AV presentation equipment, hospitality stations and meeting rooms. The flex offices will encompass community spaces, non-private common working areas, conference spaces and temporary access to private offices, with configurations varying by location.

Already operating, the Lovers-Devonshire community space at 5647 W. Lovers Lane is situated just off Dallas North Tollway, roughly 8 miles north of downtown Dallas and less than 3 miles from the Dallas Love Field Airport. The second location is named Mockingbird-Stemmons and is a conference space, located some 3 miles away at 1250 W. Mockingbird Lane, just off Stemmons Freeway and adjacent to the UT Southwestern Medical Center.

Comerica is also in the process of developing Comerica BuisnessHQ, an 8,000-square-foot community resource center at the bank’s Thornton Freeway location in Dallas. The $5 million collaborative project is planned to accommodate between 20 and 25 small businesses.

Flex office space is on the rise across the Metroplex. Serendipity Labs recently announced a 24,000-square-foot coworking location in Plano, Texas. Back in February, The Cordish Cos. opened a 30,000-square-foot flex office space at the repurposed Choctaw Stadium in Arlington.

The post Comerica Bank Launches Coworking Program appeared first on Commercial Property Executive.

2121 Avenue Of The Stars. Image courtesy of CommercialEdge

Irvine, Calif.-based flexible office space provider Premier Workspaces has opened a 14,500-square-foot coworking space in Los Angeles’ Century City district, signing a 10-year lease with The Irvine Co. The firm will occupy the space at 2121 Avenue of the Stars, formerly known as Fox Plaza, a 34-story, 970,000-square foot office tower. LA Realty Partners represented both parties in the lease signing.

The flex office space encompasses 55 private offices ranging from 90 to 240 square feet, along with a kitchen, reception area and serviced meeting rooms, while also providing virtual office plans. On-site amenities include administrative support and phone answering, as well as access to building facilities such as a fitness center, dry cleaning, EV charging stations and a shuttle to Westfield Century City Mall.

Completed in 1986, the building is close to the Santa Monica Boulevard and within walking distance of Westfield Century City, as well as other retail and dining options. It is also directly adjacent to Fox Studios and was featured as Nakatomi Plaza in the movie Die Hard.

Gary Weiss, principal at LA Realty Partners worked on behalf of Premier Workspaces, while Principal Rick Buckley represented the landlord. The flex office provider operates more than 85 locations nationwide, with most of them being concentrated on the West Coast. Last year, the firm assumed management of a 23,000-square foot coworking space in Orange County.

The post Premier Workspaces Opens Coworking Space at LA Trophy Tower appeared first on Commercial Property Executive.

Saltbox Phoenix lobby. Image courtesy of Saltbox

Saltbox has expanded its portfolio with the opening of a new co-warehousing space in Tempe, Ariz. The 110,000-square-foot facility is the company’s 12th location in the U.S. and marks its entry into the Phoenix market.

Saltbox Tempe occupies an industrial building at 910 W. Carver Road, owned by RSE Capital Partners. CommercialEdge data shows that RSE acquired the 1998-built asset last year for $10.5 million from ViaWest Group.

READ ALSO: Is Flexible Warehousing the Next Step for Industrial?

The co-warehousing space comprises 65,000 square feet of flexible warehouse suits, as well as 45,000 square feet of collaboration space, conference rooms, flex storage, dock areas and photo studios. Suites range from small warehouses, starting at 70 square feet, to larger spaces for up and running businesses, beginning at 1,000 square feet. More than 70 percent of the members occupying Saltbox warehouses are e-commerce companies selling physical goods directly to consumers.

The property is 16 miles from downtown Phoenix, having access to Interstate 10. Phoenix-Mesa Gateway Airport is 23 miles away.

Saltbox’s expansions

Saltbox Tempe is the firm’s third new location for 2023. In the first two months of the year, Saltbox opened a 76,000-square-foot co-warehousing space in Greater Minneapolis and expanded its portfolio with a Miami location as well.

Since its foundation in 2019, Saltbox has opened co-warehousing facilities in several markets across the U.S. In 2022, the company doubled its network by adding new locations in Alexandria, Va., Duarte, Calif. and Carrollton, Texas, alongside a second Atlanta space. Also last year, Saltbox opened its first fulfillment hub in Dublin, Ohio.

The post Saltbox Enters Phoenix Market appeared first on Commercial Property Executive.

Expansive Austin Highland. Image courtesy of Expansive

Expansive is set to open Expansive Austin Highland, a 48,000-square-foot coworking property in central Austin, Texas. The company paid $14.9 million for the 53,415-square-foot office building in March 2022, after landing a $10.4 million loan from Texas Security Bank, Commercial Edge data shows. Scheduled to open next month, the building has undergone a multimillion-dollar renovation plan.

Completed in 1978, the five-floor property comprises open coworking spaces, dedicated desks, private offices, suites for smaller and larger teams of up to 500 members and on-demand training and meeting rooms. Amenities include two phone booths, a community library, an outdoor patio, a shared kitchen and an outdoor penthouse community lounge. The indoor-outdoor lounge also doubles as an event venue.

Located at 305 E. Huntland Drive, the property is less than half a mile from Interstate 35 and within a mile of Highway 209. Austin city center is some 5.3 miles south of the property. Several dining, retail and entertainment options are within walking distance of Expansive Austin Highland.

The company is rapidly expanding its footprint across Texas, marking the firm’s sixth location in the state and the second in the metro. Expansive also owns and operates another location at 14205 N. Mopac Expressway in North Austin. The flex office provider is bolstering its portfolio in other states as well: in December the company opened Expansive Mesa at Newberry Station, a 20,000-square-foot coworking space in Mesa, Ariz.

The post Expansive to Open 48 KSF Austin Coworking Location appeared first on Commercial Property Executive.

AvantSpace, a California-based workspace provider, has unveiled plans for AvantSpace, Marin, a 10,000-square-foot coworking space in San Rafael, Calif. The location is part of a 12,976-square-foot historic office building owned by Moana San Rafael LLC, according to Commercial Edge data. Opening is scheduled for June.

The Marin County flex office space will include open and dedicated desks, fully furnished private offices for teams of up to six members, as well as an event venue for private and member events, available for outside bookings. Amenities and services at the space include high-speed internet, mail services, HD video conferencing and access to cultural events.

Located at 835 5th Ave., the space is within walking distance of numerous dining and retail options available on Lincoln Avenue., while U.S. Route 101 and downtown San Rafael are less than half a mile away. The company operates another coworking space in San Francisco’s Marina district, located at 2181 Greenwich St., that opened in 2018.

Other flexible workspace providers are also expanding their footprint in the Bay Area. In January, Pacific Workplaces opened a 10,798-square-foot coworking space in the Pacific Heights neighborhood. Last year, Convene entered the market with a 65,000-square-foot space at 100 Stockton St.

The post AvantSpace Expands in North Bay appeared first on Commercial Property Executive.

Industrious has opened Industrious Harvard Square, a 21,550-square-foot coworking space in Cambridge, Mass., marking the firm’s first location within the Boston submarket. The company partnered with owner Carpenter & Co. Inc. to lease the fifth floor at Charles Square, a 115,000-square-foot general office building.

The new space will encompass 240 dedicated desks, 47 offices suitable for one to 20 people, four suites, 12 phone booths and one focus room. Amenities include private conference rooms, access to office supplies and color printing, mail and packaging services, a wellness room, daily breakfast and craft coffee, as well as access to community events.

While Cambridge is a high barrier to entry submarket and Boston being one of Industrious’ top-performing markets, the new space will fill a gap in an important area close to the country’s most esteemed Ivy League institution, mentioned Doug Feinberg, senior director of real estate at Industrious, in a prepared statement.

Located at 20 University Road, the space is next to Harvard Kennedy School and within half a mile of Harvard University. Several businesses, retail and dining options at Harvard Square are within walking distance of the location.

The space marks Industrious’ seventh location in the area, in addition to Legacy Place, another 35,441-square-foot flex office space in Dedham, Mass., which opened in November last year. More recently, the firm entered the Charleston market with a 34,028-square-foot coworking space at 677 King St.

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Poinsett Plaza. Image courtesy of THRIVE | Coworking

Atlanta-based flexible workspace provider THRIVE | Coworking, has unveiled plans for a 21,450-square-foot coworking space in Greenville, S.C. The company will occupy the space at Poinsett Plaza, a 10-story, 173,340-square-foot Class A office building owned by Hughes Investments.

The flex office location will encompass a mix of shared workspaces, dedicated desks and private offices for individual workers or teams, meeting and event rooms, as well as mailbox services. Tenants also have access to community events and activities, complimentary beverages and snacks, monthly breakfast, lunches and happy hours.

Located within downtown Greenville at 104 S. Main St., the space is close to numerous retail, entertainment and dining options, as well as green spaces, such as Falls Park on the Reedy. Burr & Forman, TD Bank and Elite Fitness are the tenants of the building, among others.

The space represents an opportunity for THRIVE to assist big businesses with downtown office space, hybrid workers and solopreneurs seeking coworking options in Greenville. The city has experienced rapid economic growth in the last 20 years, due to major companies moving into the city, mentioned Chris Smith, THRIVE’s coworking chief revenue officer, in a prepared statement.

THRIVE’s rapidly growing coworking footprint

The company continues its commitment to philanthropy and community involvement and is rapidly expanding its coworking portfolio, aiming to open 500 locations throughout the U.S. and Canada, in partnership with 33 Degrees. The firm currently manages seven locations across Georgia, Ohio and North Carolina, planning to open 14 additional spaces this year.

At the end of last year, THRIVE expanded its footprint with a 12,320-square-foot flex office space in Holly Springs, N.C. and another coworking location in Asheville, N.C. More recently, the company unveiled plans for a flex office space at 2285 Wisteria Drive in Snellville, Ga., scheduled to open this summer.

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700 Nexton Square Drive. Image courtesy of Serendipity Labs

Serendipity Labs has opened a new 26,000-square-foot coworking space in the Summerville suburb of Charleston, S.C. The tenant will occupy the entire two-story property, developed and owned by Vulcan Property Group.

The building at 700 Nexton Square Drive came online last year. The flex offices will be part of Nexton, a master-planned live-work-play community encompassing retail, dining and residential space owned by a subsidiary of North America Sekisui House LLC and managed by Brookfield Properties.

The location comprises shared workspaces in common areas, private offices for up to two people, customizable team suites for more than three team members, team offices for up to 50 people, as well as meeting and event space. Onsite amenities include complimentary beverages, wellness rooms, access to events, high-end furnishings and a rotating art gallery of local artists.

Located within a mile of Interstate 26 and less than 3 miles from downtown Summerville, the space marks the company’s second coworking location in the Charleston metro. Serendipity already operates a 20,370-square-foot space at 75 Port City Landing in Mount Pleasant, S.C., according to Post and Courier.

The firm started off the year strong, as just last month it announced another 24,000-square-foot flex office location in Plano, Texas and a 40,000-square-foot coworking space in Manhattan, N.Y.

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677 King St. Image courtesy of Industrious

Flexible workspace provider Industrious has opened a 34,028-square-foot coworking space in Charleston, S.C., marking the firm’s first location in the area. The company will be the lead tenant at an 85,360-square-foot Class A office building, recently completed in 2021 and owned by Atlantic South Development Inc.

Spanning across the second and third floors of the building, the coworking space encompasses 472 open desks, private and shared offices, as well as meeting rooms for up to 20 people. Tenants also have access to a wellness room, private conference spaces, office supplies, community events, daily breakfast and craft coffee, as well as optional access to Industrious’ coworking network in 65 cities.

Located at 677 King St., the space is less than a mile from Interstate 26 and major parkways. Numerous dining and retail options, as well as coffee shops and gyms are within walking distance of the property, while central Charleston is some 1.5 miles south of the property.

Industrious is rapidly growing its coworking footprint across the U.S. Since the beginning of the year, the company unveiled plans for Industrious Park Central, a 20,910-square-foot flex office location in Phoenix, its second space in the metro. Earlier this month, the firm opened another 40,000-square-foot coworking location, in Washington, D.C.

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Legacy West Plano lounge. Image courtesy of Serendipity Labs

Serendipity Labs has unveiled plans for Legacy West Plano, a 24,000-square-foot flex office space in Plano, Texas. The coworking provider will occupy the fourth floor at One Legacy West, a 307,824-square-foot Class AA office building.

Owned by Gaedeke Group, the property is part of the $3 billion Legacy West mixed-use development. Scheduled to open in March, the coworking space will comprise shared workspaces, 71 private offices and team suites for one to 100 people, meeting rooms and event space. Amenities at the space include complimentary water, coffee and tea, onsite networking events and wellness rooms for calls and privacy.

The 14-story One Legacy West property holds LEED Gold and Energy Star certifications. Tenants also have access to the building’s amenities, including covered parking, air sterilization system, a fitness center, eco-friendly transport and charging stations. Serendipity Labs plans to upgrade the interior of the space with new design elements and technology infrastructure that meets FINRA, HIPAA, as well as data privacy and security requirements.

Located at 7950 Legacy Drive, the coworking space is one mile away from Legacy West shopping center and The Shops at Legacy, offering easy access to several retail and dining options. Plano city center is some 14.5 miles southeast of the property. Tech companies NTT Data, Softweb Solutions and Doosan Robotics are among the tenants of the building.

Rapidly growing coworking portfolio

After expanding the firm’s portfolio by 25 percent last year, Serendipity continues to grow its coworking footprint across the U.S. The company currently operates flex offices in over 35 primary and secondary markets in the country and the U.K. Just recently, the company signed a 10-year agreement with The Durst Organization, to open another 41,000-square-foot location in Manhattan’s Midtown East neighborhood.

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Executives from The Cordish Cos., Texas Rangers and Spark Coworking were joined by Arlington Mayor Jim Ross, members of Arlington City Council and community and business leaders from Tarrant County and the City of Arlington at the Spark Arlington opening ceremony. Image courtesy of The Cordish Cos.

The Cordish Cos. and the Texas Rangers have opened Spark Arlington, a 30,000-square-foot coworking space in Arlington, Texas. The flex office location is situated at the repurposed Choctaw Stadium, which served as home to the Rangers’ until 2019.

The two-level location comprises shared and private workspaces, 61 private offices, 17 suites available for one to seven people, meeting rooms for two to 40 team members, as well as event space for ten to 150 people. Amenities at the space include high-speed internet, an onsite podcast studio, a mother’s room, a wellness space, lounge spaces, a café, a community kitchen and access to a Nitro Cold Brew Coffee and tea bar.

The new Spark location is part of Texas Live!, a $250 million project located between Texas Rangers’ Globe Life Park and the Dallas Cowboys AT&T Stadium. Home, Choctaw Stadium now encompasses the headquarters of Six Flags and the Arlington Convention & Visitors Bureau.

Located at 1000 Ballpark Way, the new flex offices are close to a variety of neighboring businesses, including Globe Life Field, AT&T Stadium, Texas Live! And Live! by Loews. Spark Arlington is also within a mile of Interstate 30, less than 2.5 miles southwest of Arlington city center and close to several retail and dining options.

The ongoing expansion of coworking sector

Spark Arlington is one of the spaces included in Arlington’s $1 billion Entertainment District initiative, which comprises 200,000 square feet of restaurants, a 300-key convention hotel and a 5,000-capacity outdoor event pavilion.

Mirroring the rise of the coworking sector, The Cordish Cos.’ Spark continues to expand its Spark Coworking initiative that started in 2016 with its Spark Baltimore flagship location. Since then, the company opened two other locations in Kansas City and St. Louis, Mo., targeting entrepreneurs, creators and local innovators. Their tenant roster includes advertising, biotech, marketing and government companies, among others.

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205 E. 42nd St., right, near the Chrysler Building. Image courtesy of the Durst Organization via Serendipity Labs

Coworking space provider Serendipity Labs is taking up space at one of The Durst Organization’s New York City office buildings, pursuant to a 10-year operating agreement.

The new office space, known as Serendipity Labs – Grand Central, will occupy 41,000 square feet comprising the 19th, 20th and 21st floors atop 205 E. 42nd St. The building, situated in the Midtown East neighborhood of Manhattan just one block from namesake Grand Central Terminal, boasts 532,000 square feet of office space.

Slated to open March 1, 2023, the new coworking location will offer event space and access to a rooftop terrace, as well as 91 private offices and team office suites accommodating more than 450 desks.

READ ALSO: What’s Ahead for the Coworking Sector in 2023

Serendipity operates coworking locations in more than 35 urban markets in the U.S. and U.K., including New York’s Financial District in Lower Manhattan, suburban Westchester County, N.Y., and the states of Connecticut and New Jersey.

JLL’s Michael Berman represented Serendipity in the deal, while Durst was represented in-house by Senior Vice President of Business & Strategic Partnerships Robert Becker and Managing Director Lauren Ferrentino.

A flexible alternative to long-term leases

Serendipity Chairman & CEO John Arenas called the coworking space “a flexible alternative to long-term office leasing for companies that have decided to downsize their fixed real estate commitments and for those that need to support new, hybrid workplace policies offering employees better access to transportation to shorten commutes.” In a statement, the company touted the new offices’ proximity to Grand Central, which offers access to the New York City subway, the MTA Metro North and the Long Island Railroad.

The increasing popularity of coworking spaces has allowed Serendipity to open several new offices in recent years, most recently in Nashville, Tenn.

Constructed in 1929, 205 E. 42nd Street was acquired by Durst in 1944. Its tenants include the City University of New York, real estate firm Douglas Elliman, Fedcap Rehabilitation Services and the United Way of New York City.

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Interior of Ripple Coworking in Dayton Beach, Fla. Image courtesy of Ripple Coworking

Ripple Coworking, a Florida-based flexible workspace provider, has opened a 25,000-square-foot coworking location in Daytona Beach, Fla. The company purchased the former Daytona Daily News-Journal building and renovated it, after landing a $1.9 million loan provided by Intracoastal Bank, CommercialEdge data shows.

The flex office space encompasses 12 coworking desks, 72 furnished offices, four conference rooms, a 4,000-square-foot community lounge, a phone room, a café, onsite self storage, as well as a dedicated area for massage therapists and psychologists.

Completed in 1926, the property served as the headquarters of the Daytona Daily News-Journal for more than four decades. The latest renovations of the building included removing a 10-foot square concrete vault and changing the space into a reception area.

Located at 128 Orange Ave. in downtown Daytona, the space is situated in the proximity of several retail and dining options, while Riverfront Park and City Island are also within easy reach. The new space marks Ripple’s second investment in the Volusia-Flagler area, after its first location in Flagler Beach, Fla., which opened in 2017.

The coworking sector is registering demand and increased activity across Sun Belt markets, including Florida. Mindspace, a boutique flex office provider, has been expanding in Miami and has recently signed two leases for new locations. In August, the company occupied 30,000 square feet at The Gateway at Wynwood and in January, the company signed a 10-year lease for another 31,192-square-foot coworking space in downtown Miami.

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Steve Mohebi, CEO & Co-Founder, CANOPY. Image courtesy of CANOPY

With hybrid work culture slowly becoming the norm, an increasing number of commercial real estate landlords and investors are expanding their flex office portfolios, lured in by the subsector’s projected growth. Boutique coworking spaces with modern finishes and high-end design are among the most in demand today.

In the Bay Area, one network of shared workspaces is expanding fast. CANOPY currently operates three locations in San Francisco and another one in Silicon Valley, all offering personal desks, shared workspaces, conference rooms and private offices. Most recently, CANOPY opened in Springline, the 6.4-acre live-work-play destination developed by Presidio Bay Ventures in downtown Menlo Park, Calif. 

To find out what his vision and plans are, we asked CEO & Co-Founder Steve Mohebi to share his thoughts on today’s office market landscape, and illustrate why boutique coworking spaces make sense for office landlords across the Bay Area. 

READ ALSO: What’s Ahead for the Coworking Sector in 2023

How has office vacancy fluctuated in the San Francisco Bay Area in the past couple of years?

Mohebi: Vacancy continues to climb throughout the San Francisco Bay Area, but a large percentage of the space that’s considered vacant is technically occupied and paid for, it is actively being marketed for sublease due to lack of utilization. This highlights the overall mega trend: reduced utilization and acute need for flexible workspace solutions in the prevailing hybrid work model.

What are the main challenges that office landlords in the area face today?

Mohebi: Office landlords continue to face a flurry of challenges due to the lingering effects of the pandemic and the current consequences of the economy. For companies who are leasing space, shifts in staffing and hybrid schedules continue to fluctuate, preventing them from committing to long-term, large-scale offices. For the spaces that remain vacant, plans for converting to residential or other uses can be incredibly difficult and costly, leaving landlords with empty towers for months and years on end.

Most of these challenges are not going away anytime soon, so it is crucial that landlords continue to be creative and work with the right partners to find long-term solutions for filling vacant space. The acute need in the prevailing hybrid work model is flexible workspace solutions that enable executives to right-size their footprint to optimize facilities expenses—often the second-largest line item of any Bay Area business, behind payroll.

Pacific Heights, CANOPY’s coworking space at 2193 Fillmore St. in San Francisco. Image courtesy of CANOPY

What is CANOPY’s business model and what sets it apart from other flex workspace solutions?

Mohebi: We firmly believe that flexible, shared workspaces are the answer to the challenges facing both landlords and tenants today and in the future. The demand side is acutely tilting toward flexibility as a need to have, not a nice to have. The supply side, namely landlords, are holding outdated products—large blocks of office space—that are rapidly becoming obsolete. Our turnkey solution provides landlords with an immediate solution to this dilemma with a flex product that meets the prevailing needs of the market.

The most notable is our commitment to thoughtful, elevated design throughout each space… We design each space with highly curated colors and textures, while enhancing productivity with elegantly ergonomic furniture and abundant natural light.

Our commitment to sustainability and design, paired with more intimate workspaces in key locations across the Bay Area, and offered via flexible membership options, has ultimately created an ecosystem of accomplished and aspirational leaders from all industries. From downtown San Francisco to the heart of Silicon Valley, we’ve designed CANOPY to be a place for top talent to flourish, to which landlords and members have been receptive before, throughout and since the pandemic.

How is your model meeting the needs of both landlords and tenants in the Bay Area?

Mohebi: For landlords, we create a seamless experience, handling all responsibilities related to leasing, outfitting and managing the space, all under a long-term contract. For our members, CANOPY is a flexible, convenient solution for their fluctuating needs. As companies grow or downsize, transition from remote to hybrid, our workspaces are able to accommodate without compromising on the quality of the space or experience.

Overall, it’s crucial in today’s hybrid work environment that our workspaces provide an elevated experience that cannot be replicated by a home office. From on-site amenities like a private garden and integrated chef-driven restaurant to being in the proximity of great retailers and public spaces, each CANOPY location is designed to be an intentional, productive place to be at any time of the day.

Financial District, CANOPY’s coworking space at 353 Kearny St. in San Francisco. Image courtesy of CANOPY

Who are CANOPY’s tenants? What type of tenants are looking for boutique coworking spaces?

Mohebi: Across all four of our locations, we house members from a wide range of industries, mostly from financial services, but also design firms, law firms, professional services, tech start-ups, nonprofits and foundations and more. We are very proud of the diversity in our membership base, accentuated by a near gender-balanced community—a rarity in the Bay Area.

These types of companies are typically looking for trophy, Class A space, but in today’s modern work environment, they’d like the flexibility and access to amenities that most spaces can’t provide. The competitive options are formulaic offices in cavernous spaces built for scale. With our boutique offerings and beautiful spaces, we’re able to attract top talent from each of these industries, creating an unmatched networking experience for our members.

READ ALSO: A Glimpse Into NYC’s Booming Boutique Coworking Scene

Financial District. Image courtesy of CANOPY

How have your San Francisco locations performed last year?

Mohebi: 2022 was a fantastic year for CANOPY, bringing in the highest revenue in our history and setting us up for a record year in 2023. Our most recent location opened in November 2022 in the heart of Silicon Valley and was more than 50 percent presold prior to opening day. We’re proud of the occupancy levels we’ve maintained compared to the rest of the market and look forward to our continued growth in 2023.

Why did you choose Springline? What made that project a good fit for a CANOPY location? 

Mohebi: We chose this location because Springline is conveniently located just steps from the Caltrain Station and adjacent to downtown Menlo Park, bringing new energy to the heart of Silicon Valley through hospitality-driven modern residences, a dynamic culinary roster, and creative offices for growing businesses and entrepreneurs. Lastly and most importantly, Springline is an on-brand community committed to excellence in design, sustainability and the overall visitor experience. This is reflected in its commercial success with office rents setting national records.

Please tell us more about member benefits at your Menlo Park boutique coworking space. 

Mohebi: At our Menlo Park location, CANOPY members benefit from the wider Springline development with amenities including nine chef-driven restaurant concepts, a fully equipped fitness center, a golf simulator, an entertainment lounge, a community dog park and nearly 2 acres of public outdoor space. The walkable neighborhood is home to hundreds of modern apartment residences, bringing the mixed-use community to life with constant energy and activity. Members also have complimentary access to amenities including a full-time, full-service concierge, a programmed events schedule and a heated and misted private garden workspace.

Why do you believe that this model is the answer to the future of office space?

Mohebi: The country’s office market continues to face an uncertain future as challenges around filling vacant space and fulfilling tenants’ demands persist. We’ve struck a balance through our tailored, trophy office spaces that provide development partners with stability and members with flexibility. The way we handle leasing for the landlord and office management for the members allows us to de-escalate the decision on both sides, creating a long-lasting solution that has proven successful.

Can you share anything about your plans for this year? Do you intend to open boutique coworking spaces in other areas of the country?

Mohebi: We’re currently exploring new opportunities to expand CANOPY across the country as we assess the right spaces and partners to grow our business while maintaining the same level of quality and attention to detail that we’re known for. We look forward to announcing more details as these plans come to fruition this year and beyond.

What are your predictions for the Bay Area coworking sector in the upcoming 12 months?

Mohebi: We expect continued proliferation as more and more of the office sector reaches for a flexible workspace solution amid the prevailing hybrid work model. CANOPY stands alone as the only premium option to meet the needs of the upper quartile of the market—both for flex office as well as other would be direct lessees who seek short-term flexibility in the uncertain market ahead.

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Saltbox Doral. Image courtesy of Saltbox

Saltbox has expanded its footprint with a new co-warehousing facility in Doral, Fla. The 31,000-square-foot space marks the company’s 11th location and its entrance in the Miami market, providing flexibility for small businesses in the community.

The Saltbox facility is within a 423,022-square-foot building, constructed in 1992, CommercialEdge data shows. This property is part of the Prologis Beacon Centre—a 205-acre master planned industrial park.

Saltbox Doral includes 68 flexible warehouse suites, conference rooms, flex storage, loading docks, a photo studio, controlled access and on-site surveillance. The suites are available in various sizes, ranging from small units for entrepreneurs—between 70 and 500 square feet—to medium suites for growing operations—up to 1,000 square feet—and large spaces for up-and-running businesses, of more than 1,000 square feet.

READ ALSO: Is Flexible Warehousing the Next Step for Industrial?

Located at 1701 NW 84th Ave., the facility is west of downtown Miami and provides access to U.S. state roads 836 and 826. Miami International Airport is less than 7 miles away.

Journey of a co-warehousing startup

Saltbox opened its first co-warehousing space back in 2019 with the first location in Atlanta, a 27,000-square-foot facility. At the time, the company had closed $3.2 million in its first round of venture capital financing. In statements provided to Commercial Property Executive in 2019, Co-Founder & CEO Tyler Scriven pointed out Saltbox’s business drive, which reflected the need of bringing together in one space functionality, comfort and convenience.

Members using Saltbox locations are mostly e-commerce companies from industries such as fashion and apparel, home goods, health and beauty or tech, selling products directly to consumers. Almost 75 percent of the businesses are led by women or people of color.

In 2021, the company expanded its footprint by opening several other locations in Los Angeles, Denver, Dallas-Fort Worth and Seattle, and also closed its Series A round of $10.6 million in March. In November 2022, Saltbox announced a $35 million Series B that brought its total funding to $56 million. The investment was led by Cox Enterprises and Pendulum, with additional commitments from Playground Global, XYZ Capital, Lincoln Property Co. and Wilshire Lane Capital, among others.

Also in 2022, the company expanded in other cities across the U.S., including new locations in Alexandria, Va., Carrollton, Texas, Minneapolis, Minn., and a second facility in Atlanta.

Since the beginning of 2023, Saltbox opened a location in Arden Hills, Minn. and plans to expand this month with a new co-warehousing space in Tempe, Ariz.

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14 Ridge Square NW. Image by Maxwell MacKenzie, courtesy of Industrious

Industrious has opened a new, 40,000-square-foot flex office space in Washington, D.C., marking the company’s seventh location in the metro. The space is part of City Ridge, a 10-acre mixed-use development by Roadside Development and North America Sekisui House LLC.

The coworking location at 14 Ridge Square NW comprises 515 dedicated desks, 125 offices—suitable for both private individuals and teams of up to 20 members—13 conference rooms, two focus rooms, 21 modular phone booths and two printer stations. Tenants also have access to mail services, community events, outdoor space, daily breakfast and craft coffee.

Completed in 2022, City Ridge encompasses 154,000 square feet of retail space, 160,000 square feet of office space and four residential buildings totaling 690 units. Tenants have access to the property’s retailers, including a 30,000-square-foot Equinox, Wegmans grocery store, King Street Oyster Bar, Tatte Bakery & Café and Taco Bamba.

Situated within the historic neighborhood of Tenleytown, the coworking space is some 3.5 miles northwest of downtown and in proximity of several bus lines. The location is also close to several retail and dining options.

Just last year, the flex company opened another, 41,245-square-foot coworking space in Washington, D.C., dubbed Industrious Capital Riverfront. The flex office provider has been active in other markets, as well. Recently, it has unveiled plans for a 20,910-square-foot location in Phoenix, slated to open in September.

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Gaseteria Works. Image courtesy of JLL

Flex by JLL has added Gaseteria Works, a 23,784-square-foot boutique coworking space in Long Island City, N.Y., to its management portfolio. The new flex office space is part of The Gaseteria Building, a 65,000-square-foot office property owned by LargaVista Cos.

Following the property’s acquisition in 2017, the landlord initiated a multimillion-dollar improvement plan designed by Fogarty Finger. The former industrial building now encompasses 12-foot to 15-foot ceilings, mushroom columns and floorplates ranging from 8,000 to 14,500 square feet. Gaseteria Works flex office space offers a mix of open desks, meeting rooms, private suites, dedicated desks and virtual addresses. The space is equipped with high-tech features and has an onsite administrative team.

Located at 30-10 41st Ave. near Sunnyside Yard, the transit-oriented property is next to Queens Plaza and other subway stations, connecting it to New York City’s boroughs. Tenants also have access to numerous retail and dining options available on Jackson Avenue.

Flex by JLL continues to expand its coworking footprint, now managing and operating nine locations in the U.S., two locations in the United Kingdom and three spaces in Australia. Work is currently underway at a 15,407-square-foot, ground-up development in Secaucus, N.J., scheduled for completion in the second quarter of this year.

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