Spaces, a co-working provider that originated in Amsterdam, will open its first Twin Cities location in the North Loop.
Spaces has signed a lease to occupy about 40,000 square feet on most of the second floor and all of the third and fourth floors of the Washington, located on N. 2nd and N. Washington avenues. The plan is for the new office to open next April or May.
“I think we’ve seen in the office activity in the North Loop a lot of demand but there hasn’t been a lot of supply,” said Nate Larsen, a principal at building owner Falcon Ridge Partners.
Wes Lenci, an executive vice president for Spaces, called the North Loop a “cool, hip area” that should be an easy sell to entrepreneurs. “There are a lot of tech companies that are looking for that type of space,” Lenci said.
Spaces continues a trend of new co-working spaces opening in the Twin Cities. Last month, WeWork, which was founded in New York City, opened its first Minnesota location in Capella Tower in Minneapolis. Industrious also is opening a new office in the North Loop in the T3 building.
More than 640,000 square feet of office space is occupied by shared workspace concepts, according to a report published earlier this year by real estate company CBRE.
Spaces has about 15 open locations in the United States with about as many scheduled to open in the coming months, according to its website. It is slated to open an office in Chicago next April.
Minneapolis-based Falcon Ridge Partners in 2016 purchased the property, which was two adjoining buildings at the time, and joined them in a remodeling.
The building is best known as the site of the Sex World adult store, which now has a smaller presence on the property. Falcon Ridge has also added other tenants, including men’s apparel retailer Bonobos, the Upstairs Circus bar, ALTR fitness studio and a teller-less branch of Bank of America.
Developers also had planned to sign a restaurant space but have moved away from that idea, Larsen said.
“We’re happy with the mix,” Larsen said.