With Demand on the Rise, Four Coworking Companies Have 212K SF of Deals Pending
By Alison Stateman November 9, 2018 2:30 pm
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Los Angeles remains a hotbed of coworking operators with four major players on the verge of signing leases for space in Downtown Los Angeles by the end of the year, according to a source familiar with the transactions.
The largest of the pending deals is a 150,000-square-foot deal with WeWork at The Western Pacific building at 1031 South Broadway in the marketed SoBro district of the city.
Cushman & Wakefield, which is representing the landlord at 1031 South Broadway, the Onni Group, declined to comment. A spokeswoman for WeWork (WE), meanwhile, would not confirm the deal. Onni did not return a request for comment as of presstime.
Meanwhile, San Diego-based CommonGrounds is in the market with an approximately 32,000-square-foot lease in the central business district, a source with knowledge of the pending deal said. That would be the coworking company’s first L.A. location. A spokesman for the company did not return calls for comment.
Industrious, which has a site at 600 Wilshire Boulevard near the Staples Center, is on the verge of taking a full floor, totaling 16,000 square feet, at the Citigroup (C) Center at 444 South Flower Street owned by Coretrust Capital Partners, the source indicated. Both Industrious and Coretrust did not return calls for comment.
Meanwhile, Cross Campus is expanding its footprint at the Onni Group’s property at 800 Wilshire Boulevard, where it currently occupies the second, third and fourth floors. It will take over the fifth floor for an approximate additional 14,000 square feet, per sources. Representatives for the coworking company and the leasing agent from C&W declined to comment.
The coworking sector in the Greater Los Angeles area is continuing to grow its market share of the office leasing market. According to JLL (JLL), flexible office space operators have increased their occupancy in Greater Los Angeles to 3.2 million square feet this year, through September. That compares to 2.1 million square feet in all of 2016 and 2.4 million square feet last year. From 2010 to today, the flex- office space sector has grown 492 percent from just 500,000 square feet to its current level, JLL determined.
