Philadelphia becoming hotspot for “co-working” spaces
2/9/2012 | Real Estate Blog
Landlord-tenant relations is one aspect of real estate law, which includes a host of issues including purchase and sales agreement, construction contracts, and environmental compliance. A recent article in the Philadelphia Inquirer took a look at a new development in the area of commercial leasing.
The new trend, which is going by the name “co-working,” is increasingly being used as a way for out-of-town corporations to have a presence in downtown Philadelphia. Philadelphia’s Center City, West Philly and the suburbs are all seeing co-working spaces pop up for young IT professionals and start-ups.
Regus, perhaps the most prominent corporate landlord offering co-working spaces, has rent-a-suites in over 500 cities worldwide. The company’s clients range from part-time personal offices to local units of Microsoft, Cisco and other large companies. Regus, which operates out of Lusembourg and suburban London, made its way to Philadelphia nine years ago after purchasing the former HQ Global Workplaces.
According to Lori Brown, the head manager of Regus’ Philadelphia operation, Philadelphia is now largely a “branch-office town” similar to Atlanta. Out-of-town corporations are increasingly renting retail spaces from wholesale landlords.
The recession has increased demand for downtown spaces like those offered by Regus. Among the benefits of these spaces are that companies do not have to spend a lot of money and time establishing a presence in a community. Instead of running an office, companies are allowed to focus on their business.
The setup allows companies to not have to pay for full office space for workers who are not there all the time. Companies that have multiple people coming in and out of an office find it helpful, as do companies who don’t even need office space but simply want a legitimate business address and phone number.
From the sounds of it, Philadelphia is becoming an increasingly popular place for this type of business setup.
Source: Philadelphia Inquirer, “PhillyDeals: Philadelphia is fertile territory for ‘coworking spaces,” Joseph N. DiStefano, February 8, 2012.