The co-working market in Phoenix is rapidly expanding. While the office niche in Phoenix is still small compared to major West Coast hubs, like Los Angeles and San Francisco, co-working square footage is on track to double this year.
Last year, there was 9,000 square feet of co-working space in the market, but expansion from groups like WeWork and Industrious, along with the arrival of new operators into the market, the office niche is growing quickly. “At the end of this year, we will essentially double our footprint in co-working, but it will no longer be Regus as the market leader,” says Bartos. By 2030, flexible office space will account for 30% of all office space in the US. Just like in Phoenix, WeWork and Regus are leading the co-working expansion.
Tech-friendly markets like Tempe and Old Town have been popular for co-working companies to attract the creative markets and entrepreneurial users, but co-working leader WeWork is rapidly expanding with its most recently signed lease in Downtown Phoenix.
“We have fantastic population growth, quality of living, heavy labor pool that is well educated. Not only is the local economy growing with technology companies, but there is a net in-migration of tech companies from New York and other tier one markets, and that is validating that Phoenix is no longer a tier three market. We have quickly shot up the list.”