IWG, a global provider of flexible workstations, is opening a Spaces coworking office in West Hollywood.
The Switzerland-based firm signed a 31,000-square-foot coworking lease that partially replaces a former 48,000-square-foot WeWork space at 925 North La Brea Ave., the Commercial Observer reported. The property is owned by CIM Group, based in Mid-Wilshire.
\WeWork terminated its lease at the 63,331-square-foot building last year following billions of dollars in financial losses, which forced it to unload floors or entire buildings across Los Angeles.
Spaces West Hollywood, which opens May 5, will include 160 private offices and coworking spaces, 12 meeting rooms and 10 phone booths for clients ranging from startups to more established companies.
The coworking outlet on La Brea, between Melrose Avenue and Santa Monica Boulevard,will charge $430 per person for a full month of office space and $254 per person for coworking membership, according to the Spaces website.
Demand for flexible office space and hybrid work arrangements has risen since the pandemic.
A December survey by JLL found 41 percent of office tenants expected to increase use of flexible office space due to the pandemic, an increase from 29 percent recorded in a 2020 survey.
At the same time, the market for flexible office space fell across the U.S., with 144 providers cutting their footprints by 12.2 million square feet — mostly in Los Angeles, San Francisco and Manhattan, according to Commercial Observed.
But larger providers like IWG have grown over the past year as companies needed new flexible space.
Last month, IWG invested $350 million into office listing service Instant Group, with both companies trying to create the world’s largest online marketplace for flexible office space.
Research by IWG shows 70 percent of job candidates desire hybrid work policies, and half of existing employees would quit their jobs if forced back to the office five days a week. Additionally, research by Global Workplace Analytics found that businesses can save more than $11,000 per year, per employee, by implementing hybrid working.
“Companies are rapidly appreciating that one size does not fit all when it comes to hybrid work,” said Mark Dixon, founder and CEO of IWG. “They are now adapting their approach to meet the new expectations of their employees, while taking advantage of the many competitive advantages that hybrid brings, including reduced costs, improved productivity and increased talent retention.”
[Commercial Observer] – Dana Bartholomew