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LA has become a co-working hotspot, with hubs opening up across the city
Demand for co-working and flexible office spaces continues to grow in the US, with hubs opening in different markets to meet demand. There is one special city that appears to be having something of a boom right now.
Data from Jones Lang LaSalle shows that more than 20 leases for co-working and flexible office spaces have been secured in Los Angeles so far this year, with WeWork, Knotel and IWG opening locations across the city. Newcomer The Wing, the women-focused flexible office space company co-founded by Lena Dunham bestie Audrey Gelman, also expanded into LA this past April, opening a site in West Hollywood.
Further data from JLL shows the Westside of LA is still benefiting from large-scale growth in the city’s more traditional industries, from media and entertainment to digital content creation and production. And while the well-established areas of LA for co-working hubs such as Santa Monica and Century City continue to attract providers and tenants alike, there are submarkets emerging such as Playa Vista and Hollywood — creating more growth and opportunities within the flexible working market.
With all the new sites opening up. it’s no wonder that LA is now the second-largest market for co-working spaces in the US by square footage. According to a recent CBRE report, more than two per cent of LA’s entire office inventory is now made up of flexible spaces. Just last year the city’s flexible space footprint grew by 15 percent to 4.23 million square feet.
And across the US, the report found that the top five flexible space operators are Regus, Spaces, WeWork, Knotel and Industrious.
Earlier this year IWG opened its eighth co-working space in LA under the popular Spaces brand. Situated in the vibrant media district of Santa Monica, the new location is on one of the largest blocks of creative office space in the heart of the city.
Michael Berretta, Vice President of Network Development in the Americas at IWG, said at the time that he believes the growth in LA has been driven firstly by the strong start-up community in the city, and secondly by the increasing demand from employees at tech and entertainment companies for flexible office spaces in the suburbs.
“As the LA market continues to establish itself as an entrepreneurial hub,” he says, “more and more businesses are leaning into the benefits of co-working. Co-working has shown to be a key driver in attracting and retaining talent, which is important in a competitive market such as LA.”
Not only that, but co-working brands like Regus and Spaces have been answering client demand for better access to more convenient office spaces while also providing a well-placed base for companies to make strategic business moves.
Speaking to LA Business Journal, Berretta said the bad traffic in LA is one of the factors that makes the concept of flexible office space attractive, and IWG’s multiple locations across the city means clients have the opportunity to reduce the amount of time they spend commuting. Companies have been using Spaces as a way to expand their businesses by creating a secondary branch office at one of the sites, allowing them to test out a new market before signing a long-term real estate lease in the area, he said.
Whether businesses use flexible spaces for expansion or exploration, they have certainly felt the benefits of the model which is swiftly becoming part of many a company’s offering. IWG’s recent Global Workplace Survey found that more than half of employees now spend half of their week working outside of their main office, and flexible working is considered by many to be the new norm. In the past ten years, 85 percent of businesses have introduced a flexible workspace policy, the report found.
To find out about flexible office space near you, visit Regus