TailoredSpace, the anti-WeWork, brings co-working spaces to California suburbs

Just because WeWork is teetering on the edge of oblivion doesn’t mean the co-working industry is poised to go with it.

In the wake of the pandemic, commercial broker Drew Sanden identified a gap in the market and he created TailoredSpace, a company specializing in flexible co-working and communal spaces in Southern California suburbs, the Mercury News reported.

Founded in April 2019, TailoredSpace caters to suburban markets by providing convenient, flexible workspaces to individuals who prefer proximity to their homes. It plans to open new locations in the Bay Area, while continuing to mine Southern California, including locations in San Juan Capistrano and Santa Clarita, the outlet reported.

“We’re at an inflection point,” Sanden told the outlet. “There’s a transition going on: a lot of right-sizing, contraction, even closing of offices. Everyone is trying to figure out what the new norm is moving forward, and to some degree, we’ve benefited from that in these suburban markets.”

The company’s network of office campuses is strategically located, with about 80 percent of members residing within a 5-mile radius of their chosen site. Each location boasts high per capita income levels, easy freeway access, and nearby shopping and dining options.

The company’s success model involves partnering with landlords through management agreements, rather than traditional leases, allowing TailoredSpace to focus on operational aspects while landlords handle tenant improvement costs, including furnishings and equipment. 

TailoredSpace offers various membership options, ranging from virtual plans to co-working desks and private offices. A unique selling point is its inclusion of amenities – snacks, drinks, and copy room supplies – in all membership packages, which run from $75 a month for a startup to $650 a month for a company looking for office space.

“Most of our companies are smaller companies or solopreneurs, and community is something they’re lacking,” he told the outlet. “We’re able to provide that and help connect them with other members, a big win for us and one of the metrics for the success of our community directors.”

As the office market faces uncertainties, TailoredSpace’s growth strategy involves expanding its footprint into Northern California. 

He explained why his company doesn’t face the same challenges of WeWork.

“What we’ve done differently is focus on cash flow as opposed to growth from the beginning,” he told the outlet. “We can’t afford, at the size we’re at, to have a site fail. And so, for us, we need to consistently be hitting our 90 percent occupancy-plus at these sites, and that’s a really critical part for us.”

— Ted Glanzer