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The Real Deal Los Angeles

With 5 leases in 12 months, Spaces is gobbling up LA office space

Dutch co-working firm wants to have up to 20 sites in LA region
By Cathaleen Chen | July 27, 2017 04:00PM

Spaces’ locations in West Hollywood, Irvine, Arts District, Calabasas, and Culver City (credit: Regus, The Park Calabasas)

Spaces wants to be the biggest co-working company in Los Angeles.

If the Dutch brand continues its leasing streak at the same clip, it will succeed. The Regus’ sister company owned by IWG inked five L.A. leases totaling more than 172,033 square feet in the past 12 months — and a sixth lease in Irvine.

By the first quarter of 2018, Spaces hopes to have eight outposts in the L.A. area, said Michael Berretta, Spaces’ head of development in North America. The ultimate goal? To have up to 20 spread out across the region.

Owned by IWG, Spaces is an affiliate of Regus, which now has 48 locations in L.A., according to Berretta.

Spaces’ L.A. County leases include 30,000 square feet at the Fairfax Business Center at 145 S. Fairfax Avenue; 27,000 square feet at 730 Arizona Avenue in Santa Monica; 51,000 square feet at The Row in the Arts District; 17,300 square feet at the Park Calabasas at 4500 Park Granada; and 47,000 square feet at a loft office at 10100 Venice Boulevard in Culver City. The Fairfax location is the only one already open.

Spaces worked with CBRE’s Danny Rainer, John Zanetos, and Matt Heyn on the leases.

All the leases have at least 10-year terms, Berretta said. Spaces declined to disclose the value of the leases, but sources told TRD that its Culver City location — the biggest site — is valued at about $22 million based on a $3.85 asking rent.

“Nobody has the amount of overall locations as we do,” he told The Real Deal, referring to Spaces- and Regus-branded offices combined.

WeWork, which just inked a fresh lease of its own in Charles Cohen’s Pacific Design Center campus, now has more than 15 locations in L.A.

The Spaces-Regus brands have one competitive edge over WeWork, Berretta said, and it’s the two niches that they offer clients: While Spaces features open plans and a myriad of collaboration zones, Regus is more office-intensive and feels more corporate.