Co-working company Regus has signed a 10-year lease in Santa Monica valued at more than $23 million for its new “Spaces” division. The lease, for 28,822 square feet at 730 Arizona Avenue, is the second the Netherlands-based company has signed this year.
Spaces will take the entirety of the building, owned by landlord Palisades Capital Partners, according to CoStar Group. Palisades bought the building for $24 million in September 2015.
CBRE’s Danny Rainer represented the Regus in the transactions.
Spaces signed its first Southern California lease for almost 30,000 square feet at 145 S. Fairfax Avenue, overlooking the Original Farmer’s Market, in late January.
The co-working sector is growing, according to research from CBRE. It has a five-year compound annual growth rate of 21 percent.