BD.C.

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M O RE M A R K E T F L A S H O C TO B E R 2 0 1 8

Baltimore’s coworking sector

shows promising growth
Baltimore is maturing as a coworking hub with the entry of Spaces and WeWork
As coworking has become a transformative force in the commercial real estate landscape across
the U.S., the sector has also shown considerable growth in Baltimore. While the market used to
consist mostly of small to mid-sized local providers such as Spark and Betamore, two major
international coworking operators—Spaces and WeWork—have entered the market over the
past year, together leasing 131,000 sq. ft. of office space. As of the end of Q3 2018, total
coworking inventory reached 367,000 sq. ft. in the Baltimore region.

• In October, Spaces—Regus’ coworking arm—opened its first Baltimore location at the newly
developed Stadium Square. Spaces also signed a lease at 200 E Pratt Street to open a
second location in Spring 2019. The two will have a combined footprint of 62,000 sq. ft.

• In Q3 2018, WeWork leased two floors at the Wills Wharf development in Harbor Point for its
first Baltimore location that will open in 2020. This represents the largest coworking space to
date in Baltimore.

Coworking’s concentration in high-density urban areas

80% of Baltimore’s coworking inventory is located in the city of Baltimore, reflective of the
preference for urban areas with a high-density population and a diverse array of commuting
options. The coworking footprint accounts for 1.6% of the city’s total occupied office space,
comparable to other national coworking hubs such as Washington, D.C.

Booming startup scene drives coworking space demand

Baltimore coworking provider composition by SF
The expansion of the coworking sector correlates
closely with the growth in venture capital investment. WeWork
5% 4%
In 2018, Baltimore was ranked as the fifth top rising 5% 24%
Spaces
city for startups by Forbes, with $1 billion in three- 6%
Regus
year venture capital investment. Johns Hopkins Open Works
7%
Technology Ventures, a Baltimore-based The Foundery
organization that helps local innovators ETC
12%
commercialize intellectual property and develop 21% Spark
startups, issued 150 new patents over the past year, Catapult
16%
up 20% from the year before. Function

Notable coworking locations in Baltimore

Operator Address Submarket SF Type
WeWork Wills Wharf Baltimore City East 69,000 International
Spaces 145 W Ostend Street Baltimore City East 32,000 International
Spaces 200 E Pratt Street Baltimore CBD 30,000 International
ETC 101 N Haven Street Baltimore City East 17,000 Local
Spark 8 Market Place Baltimore CBD 15,000 Local

Coworking market implications

Overall Appeal Issues for Consideration

• Flexibility in lease term and size • Lack of privacy

• Access to high-end amenities
End • Community collaboration
Users • Employee retention and recruiting
• Appeal to startups, tech firms and other
progressive organizations
• Potential dilution in identity and
headquarters experience
• Both physical and IT security concerns
• Higher rent per sq. ft. compared to
traditional office leases

• Access to a high-growth market • Lease instability

• Incubates small businesses to grow into • Credit risk
Landlords traditional tenants • Concern over tenant mix and high
• Speed to lease execution and occupancy pedestrian traffic
• Ability to absorb challenging space • Greater exposure to real estate cycles

Source: CBRE Research, October 2018.