Co-working giant WeWork confirmed plans to lease nearly 50,000 square feet, or two floors, in midtown’s Coda office tower. Atlanta Business Chronicle first reported on the expansion in February.
New York-based WeWork is muscling up in Atlanta’s tech friendly intown submarkets. The company leases more than 250,000 square feet across five locations in Buckhead and Midtown.
WeWork Ribbon Cutting
WeWork opened its newest Atlanta location at 1372 Peachtreet Street on Jan. 22 with a ribbon cutting. WeWork’s three Atlanta locations can accommodate more than 3,000 members.
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Coda is a $400 million mixed-use development being developed by Portman Holdings at Tech Square, an eight-block development bustling with startups, tech incubators, venture firms and students. Georgia Tech will serve as the anchor tenant for the 770,000-square-foot Coda, occupying about half of the office and center. The remaining space will be available for corporations and Georgia Tech research partners.
WeWork, valued at more than $20 billion and backed by SoftBank Group, is in a land-grab battle in Atlanta and other cities.
Atlanta’s robust ecosystem of startups and Fortune 1000 companies, coupled with its deep talent pool, make the city an attractive market for shared-space providers, such as WeWork, Industrious, Spaces, Roam, Serendipity Labs and Office Evolution.
Spaces, the co-working brand of Luxembourg-based IWG plc, is in discussions to lease about 50,000 square feet at Star Metals, a 14-story mixed-use redevelopment in West Midtown.
Coworking (SLIDESHOW) VIEW SLIDESHOW 11 photos
Atlanta is the fifth largest co-working market in the United States behind Manhattan, Los Angeles, Chicago, and San Francisco, according to real estate services firm Cushman & Wakefield. In Atlanta, there was 230,000 square feet of new coworking space in 2017, which represented 18 percent of overall absorption. Atlanta is expected to surpass 1 million square feet of co-working space in 2018.
In Atlanta and elsewhere, companies, such as Microsoft (Nasdaq: MSFT), use co-working offices as swing space, while others use it as a permanent regional office.
For the co-working industry, the next step is a managed-service model, where providers manage office spaces for enterprise companies and create a workplace culture for their millennial workforce. These locations have the same energy and offerings as a third party co-working space, but are provided for just one company’s workforce.
Sam Hollis, Clinton McKellar and Lawrence Gellerstedt with Cushman & Wakefield represented WeWork on the real estate transaction. Travis Garland represented Portman Holding.