CBRE today announced that it has arranged a 48,069 square-foot lease for Spaces, a coworking brand of IWG that originated in Amsterdam, at 1626 Locust Street in Center City, Philadelphia.

CBRE First Vice President Stephen Kriz represented Spaces during the lease negotiations, while Doug Himmelreich and Mike Dolan of Stockton Real Estate Advisors represented the building’s owner, Cross Properties.

Spaces’ first Philadelphia location is located at the Hale Building, where it occupies 37,735 square-feet. Mr. Kriz also represented Spaces in that transaction.

“Rittenhouse Square is an ideal place for Spaces to open their second Philadelphia location,” said Mr. Kriz. “Their unique coworking environment provides a strong collaborative workplace for the many entrepreneurs and corporate users in Center City.”

“Our community of achievers are looking for a unique and inspiring workplace that fosters work-life integration,” said Michael Berretta, Vice President of Network Development for IWG, which owns Spaces. “Our expansion in Philadelphia is yet another example of the rising demand from businesses of all sizes for flexible workspaces.”

According to CBRE Research, over the past two years, 550,000 square-feet of new coworking and incubator spaces have been added to the Center City market. Spaces’ new lease will bring the city of Philadelphia’s total coworking footprint up to over 900,000 square-feet, spread between 22 different providers. Yet coworking space still only represents less than 2.0 percent of the total Center City office inventory, indicating great opportunity for continued growth.

Spaces will occupy the entirety of 1626 Locust and is expected to move into the new location at the end of 2019.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.