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Friday, May 27, 2022

IWG Takes Over Former WeWork

Switzerland-based IWG’s Spaces vertical is opening a 31,000-square-foot flexible workspace location at a former WeWork Cos. Inc. location in West Hollywood. The building, at 925 N. La Brea Ave., is owned by CIM Group.
The space has 160 private offices, coworking space, 12 meeting rooms and 10 phone booths.

The building is near Melrose Avenue and Santa Monica Boulevard and has views of Park La Brea, the Hollywood Hills and downtown.
“Companies are rapidly appreciating that one size does not fill all when it comes to hybrid work,” Mark Dixon, founder and chief executive of IWG, said in a statement. “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.”

IWG, which is also behind flex office provider Regus, found that 70% of job candidates now want companies to have a hybrid work policy and half of the current employees would quit their jobs if they were forced to go back to an office five days a week.
IWG has been seeing interest in its properties, despite the pandemic. In 2021, the company added more than 2 million new customers to its spaces. This year, IWG is looking to add 1,000 additional locations to its portfolio.

In March, the company announced it was investing $350 million in a venture with Instant Group, an office listing service company.
And Dixon said West Hollywood is a great market for the company.
“West Hollywood is an exciting market for IWG to expand into as we are seeing strong demand as companies adapt their real estate strategies to incorporate the hybrid model,” Dixon said in a statement.

The West Hollywood office market has fared better than others in the region. During the first quarter, the vacancy rate in the area was 11%, down from 12.% the previous year and far below the county average of 20.8%, according to data from Jones Lang LaSalle Inc.
During the quarter the average asking rate for Class A space was $5.04 a square foot, 92 cents higher than the county average.

During the quarter there was nearly 34,000 square feet of positive net absorption, compared to more than 1 million square feet of negative net absorption countywide, JLL data shows.

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