Key Takeaways
- • CommonGrounds Workplace signed a 62,461-square-foot long-term lease at 1700 Market in Philadelphia's Center City, occupying two floors in the recently renovated 850,000-square-foot building, with operations expected to launch in late January 2020.
- • This Philadelphia deal represents the sixth lease CommonGrounds signed in 2019 under its $100 million Series A funding expansion, bringing the company's announced 2019 lease portfolio to over 263,000 square feet across six major U.S. markets.
- • CommonGrounds has rapidly scaled its footprint in 2019, opening new locations in Minneapolis, Portland, and Salt Lake City while executing leases in Atlanta, Los Angeles, Seattle, and two Washington DC properties, with nine additional locations under construction.
- • CBRE brokers Joseph Wolff, Kevin Maloney, George Cauffman, and David Mendez represented building owner Shorenstein Co., while Strategic Real Estate Advisory and The Flynn and Company represented CommonGrounds in negotiations.
- • The company's expansion strategy targets major metropolitan markets and Class-A office buildings, positioning flexible workplace solutions amid evolving corporate real estate demands.
Summary
CommonGrounds Workplace, a San Diego-based flexible workplace provider, has signed a long-term lease for 62,461 square feet across two floors at 1700 Market in Philadelphia's Center City. The recently renovated 850,000-square-foot office tower will host the company's new Philadelphia location, with operations commencing in late January 2020. This marks the company's entry into the Philadelphia market and represents a strategic expansion into the Northeast corridor.
The Philadelphia lease is the sixth location CommonGrounds signed during 2019 as part of its $100 million Series A funding expansion program. The company has announced 2019 leases totaling more than 263,000 square feet across six major U.S. markets, including Midtown Atlanta, Los Angeles' financial district, Seattle's South Lake Union, and two Washington DC properties in the Downtown and Capitol Riverfront neighborhoods. Notably, CommonGrounds signed a 44,183-square-foot lease at 99M in Washington DC's Capitol Riverfront, with operations scheduled to open in late March 2020.
Beyond announced lease signings, CommonGrounds has executed a more aggressive real estate deployment strategy throughout 2019. The company opened new locations in Minneapolis, Portland, and Salt Lake City earlier in the year and is launching three additional facilities this summer, with nine more locations currently under construction. This pace reflects the company's confidence in flexible workspace demand across diverse geographic markets and building classes.
Brokerage representation on the Philadelphia transaction included CBRE brokers Joseph Wolff, Kevin Maloney, George Cauffman, and David Mendez, who represented Shorenstein Co. (the building owner). CommonGrounds was represented by Jim Suber of Strategic Real Estate Advisory and Michael Gallagher of The Flynn and Company. CEO Jacob Bates, described as a former Philadelphia resident, characterized the expansion as an honor for the company, underscoring management's commitment to geographic diversification amid the competitive flexible workspace market.
The Philadelphia lease is the sixth location CommonGrounds signed during 2019 as part of its $100 million Series A funding expansion program. The company has announced 2019 leases totaling more than 263,000 square feet across six major U.S. markets, including Midtown Atlanta, Los Angeles' financial district, Seattle's South Lake Union, and two Washington DC properties in the Downtown and Capitol Riverfront neighborhoods. Notably, CommonGrounds signed a 44,183-square-foot lease at 99M in Washington DC's Capitol Riverfront, with operations scheduled to open in late March 2020.
Beyond announced lease signings, CommonGrounds has executed a more aggressive real estate deployment strategy throughout 2019. The company opened new locations in Minneapolis, Portland, and Salt Lake City earlier in the year and is launching three additional facilities this summer, with nine more locations currently under construction. This pace reflects the company's confidence in flexible workspace demand across diverse geographic markets and building classes.
Brokerage representation on the Philadelphia transaction included CBRE brokers Joseph Wolff, Kevin Maloney, George Cauffman, and David Mendez, who represented Shorenstein Co. (the building owner). CommonGrounds was represented by Jim Suber of Strategic Real Estate Advisory and Michael Gallagher of The Flynn and Company. CEO Jacob Bates, described as a former Philadelphia resident, characterized the expansion as an honor for the company, underscoring management's commitment to geographic diversification amid the competitive flexible workspace market.
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