Coworking operator Serendipity Labs is entering the Orange County office market as part of a growing wave of flex space providers targeting suburban workforces in and outside of Southern California.
The Stamford, Connecticut-based firm signed a management agreement for two floors totaling 39,000 square feet at 3200 Park Center Drive in Costa Mesa. It is a partner in the space with landlord Irvine Co. at the firm's Pacific Arts Plaza office complex.
The space, set to open in July, will offer private offices, coworking lounges, team suites and seven meeting rooms, with additional access to a 100-person conference center being built elsewhere on the property.
The move is part of a broader expansion strategy in which the company has added more than 250,000 square feet to its U.S. footprint over the past two years. The firm operates locations in 12 states across the country as well as in the United Kingdom.
Serendipity Labs is taking over management of space in high-end properties in suburban and secondary markets across Southern California, employing a hub-and-spoke model that places locations near city centers and residential employment clusters.
The firm is one of several operators leaning into suburban growth. SimplerSpace, a no-frills coworking brand, leased 17,000 square feet at Foothill Plaza in Foothill Ranch. The space backfilled a former Kaiser Aluminum office, and includes 32 office suites and a training center catering to hybrid teams and "solopreneurs" seeking convenience without long commitments.
Flex office users have evolved as well. Serendipity Labs says many of its members today are teams from Fortune 500 companies piloting hybrid strategies — not just start-ups or freelancers. Melissa Cates, president of the company, cited a pilot program with Ernst & Young in Buffalo, New York, that began with 25 desks for a 100-person team and expanded after strong employee response.
“Even work-from-home people don’t always want to be at home all the time. They want to be near home,” Cates told CoStar News. “Our spaces offer flexibility without the long-term risk.”
Suburban workers
The suburban shift coincides with improving fundamentals in Orange County’s office market. Vacancy has fallen 100 basis points in the past year to 12.5% as of early 2025, while tenants absorbed 860,000 more square feet than they gave back during that time, according to CoStar data. By contrast, office vacancy in nearby Los Angeles has risen to 15.9%, with office tenants giving back 2.3 million more square feet than they leased in the past year, according to CoStar data.
Construction activity in Orange County has slowed significantly, with no major office projects breaking ground since late 2021, according to CoStar Senior Director of Market Analytics Jesse Gundersheim. Only a few small buildings remain under construction, while several planned developments have been shelved amid weak leasing demand. At the same time, older office properties are being demolished and redeveloped at a faster pace than the national average.
Large occupiers are also using flex space to navigate space planning. Amazon has expanded its use of WeWork suites in suburban markets like Irving, Texas, as part of its return-to-office strategy. Industry researchers say landlords with plug-and-play space and minimal build-out timelines are increasingly positioned to win those deals.
Serendipity Labs is in talks to open more locations in Southern California but isn’t rushing to scale. Unlike some venture capital-backed coworking startups, Cates said, the company is seeking partnerships with strong landlords who understand how flex can add value.
The company’s real estate model aligns with what some analysts call the “amenitization” of office. Cates said the Irvine Co. had already done a strong job activating the property’s communal spaces, and Serendipity Labs could function as another building amenity for existing tenants.
Flex space demand has also been a growth engine for national operators. Vast Coworking Group, owner of Venture X and Office Evolution, reported double-digit revenue increases in 2024 and expanded to more than 60,000 members. Company President Jason Anderson said only a fraction of workers need to be in traditional downtown office towers full time.