PHILADELPHIA, PA—Spaces, the coworking brand of IWG that originated in the Netherlands, is leasing 48,069 square feet at 1626 Locust Street in Philadelphia, its second location in the city.
CBRE first vice president Stephen Kriz represented Spaces during the lease negotiations, while Doug Himmelreich and Mike Dolan of Stockton Real Estate Advisors represented the building’s owner, Cross Properties.
Spaces’ first Philadelphia location is at the Hale Building, where it occupies 37,735 square feet. Kriz of CBRE also represented Spaces in that transaction.
“Rittenhouse Square is an ideal place for Spaces to open their second Philadelphia location,” says Kriz. “Their unique coworking environment provides a strong collaborative workplace for the many entrepreneurs and corporate users in Center City.”
“Our community of achievers are looking for a unique and inspiring workplace that fosters work-life integration,” says Michael Berretta, vice president of network development for IWG. “Our expansion in Philadelphia is yet another example of the rising demand from businesses of all sizes for flexible workspaces.”
According to CBRE Research, over the past two years, 550,000 square feet of new coworking and incubator spaces have been added to the Center City market. Spaces’ new lease will bring the city of Philadelphia’s total coworking footprint up to more than 900,000 square feet, spread between 22 different providers. Yet coworking space still only represents less than two percent of the total Center City office inventory, indicating great opportunity for continued growth.
Spaces will occupy all of 1626 Locust and is expected to move into the new location at the end of 2019.