Office Evolution is in Good Company as other Co-Working concepts grow in Charlotte

(April 3, 2018 — Charlotte, NC)  Office Evolution joins the ranks of Spaces as co-working boom in Charlotte continues.

An international co-working concept that signed on for its first Charlotte office a few months ago has already landed a second deal in South End.

According to JLL, Spaces, based in Amsterdam, will lease 27,400 square feet at 307 West Tremont, a nearly 50,000-square-foot former warehouse building that Asana Partners acquired last year for just shy of $7.3 million. Charlotte-based Asana is upfitting several former older commercial buildings around town, particularly in South End, and re-leasing them to a mix of office and retail tenants.

In January, Spaces confirmed it had leased nearly 32,000 square feet at 101 North Tryon at Trade and Tryon streets. Spaces locations include a business club for networking and co-working, private offices for rent, meeting rooms and events space. Between its uptown and South End offices, Spaces has almost 60,000 square feet leased.

Spaces joins a number of co-working operators aggressively expanding in both the center city and the suburbs — co-working behemoth WeWork is the largest tenant at 615 South College with more than 90,000 square feet leased, co-working franchise Office Evolution plans to add up to five offices throughout the city and several local shops are continuing to expand and add new locations.

307 West Tremont sits on a 3.4-acre site near the intersection of Tremont Avenue and South Tryon Street. It was built in 1978.

Michael Berretta, vice president of network development for IWG, which owns Spaces, said in a statement that Charlotte is fast becoming an entrepreneurial hub and that the Design District — what Asana has branded its South End properties as — was “the perfect location” for Spaces.

“Not only is 307 West Tremont Avenue easily accessible but it is also steps away from an up-and-coming business community that will provide additional fuel for innovation and growth,” Berretta said.

Since its buying spree in South End over the past couple of years, Asana appears to be closing deals with several retail and office tenants in its portfolio. Krispy Kreme is taking an undetermined amount of space at the former Hawkins Street Design Center for its regional office. And at the Design Center of the Carolinas, its biggest holding in South End, Asana has signed retailers like Barcelona Wine Bar, Superica, Jeni’s Splendid Ice Cream and Pepperbox Doughnuts.

Most of Spaces’ co-working offices are outside the U.S., but it does have several locations opening or in the works nationally, including in Raleigh.
According to a recent JLL report, the Charlotte office market currently has a little more than 3 million square feet under construction and a total vacancy rate of 12.2%. In the central business district specifically, total vacancy is at 11.5% and about 2.6 million square feet is being built. The midtown/South End submarket has the lowest vacancy rate, 7.1%, and rates there are the highest, averaging $33.26 per square foot. The market-wide average rental rate is $26.89 per square foot.

Jaime Boast and Ross Howard at JLL represented Spaces in the lease transaction. Tom FitzGerald of JLL represented Asana Partners.
*Article first published in the Charlotte Business Journal