Citing Demand, TailoredSpace to Open Eight SoCal CoWorking Locations in 2024
By Nick Trombola January 2, 2024 4:36 pm
reprints
With remote work and hybrid schedules more popular than ever, even well after COVID restrictions have ended, the demand for alternative work spaces continues to rise — especially in California.
TailoredSpace is taking advantage of that demand across Southern California. The coworking space provider announced Tuesday that it plans to open as many as eight new locations in the region throughout 2024, effectively doubling its current portfolio. The company specifically identified Laguna Niguel in Orange County and Santa Clarita in northwestern Los Angeles County as the cities next on its list.
“Coworking, much like hybrid work, is here to stay,” TailoredSpace Co-Founder Drew Sanden said in a statement. “While people want the flexibility of working from home, that isn’t always the easiest solution when home includes other distractions … We’re looking at suburban locations throughout the state so that we can provide space that is still close to our members’ homes and they can better balance their work and home life.”
TailoredSpace, and its sister company SimplerSpace, was active in 2023, adding three locations in Carlsbad, Placenta and San Juan Capistrano. They join seven other locations that the companies operate in Brea, Chino Hills, Corona, Rancho Cucamonga, Riverside and West Covina, as well as an existing site in Carlsbad. The San Juan Capistrano location, at 27131 Calle Arroyo, is TailoredSpace’s newest, opening in September with approximately 14,000 square feet.
Founded in 2019, TailoredSpace offers open communal work space in exchange for monthly memberships, working with landlords via service contracts rather than traditional leases, according to the company. TailoredSpace handles staff operations, while the landlords provide maintenance, furniture and equipment.
Despite the demand for alternative work space across the country, TailoredSpace’s rise comes amid the throes of WeWork (WE)’s dramatic fall. The foundering company, once the largest private tenant in Manhattan, filed for Chapter 11 bankruptcy in November following years of alleged financial mismanagement.
Unlike TailoredSpace, WeWork’s business model focused on committing to long-term office leases, renovating those spaces, and then subletting them to members. Those commitments ultimately led to WeWork becoming strapped for cash as it lost roughly $15 billion since 2017 and netted nearly $700 million in losses in the first half of 2023, according to The New York Times and the company’s 2023 second-quarter earnings report.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
