Loloft growth plan begins in Phoenix

Northwest Arkansas commercial real estate startup Loloft has signed a lease agreement in Phoenix to expand its industrial co-working concept.

The company has leased approximately 52,000 square feet of traditional office space from building owner Workspace Property Trust. The lease term is 12 years.

Loloft is an acronym for “Local Logistics, Flexible Terms.” The business model operates similarly to a regular co-working concept but is marketed to early-stage or growing companies by offering warehouse spaces on a flexible basis with lease terms as short as 30 days.

CEO and co-founder Brendan Howell said the company assumed possession of the Phoenix space on Jan. 1. It will be available for members to move in starting in the second quarter of 2024.

In 2020, Howell and co-founder Paola Ibarra moved from Miami to Northwest Arkansas for a previous business venture. They introduced the Loloft concept in late 2021.

With backing from RZC Investments, the investment platform for Steuart and Tom Walton, the company redesigned a former ice factory at 600 S. First St. in downtown Rogers into its flagship location. It opened in 2023.

Howell said the Phoenix location marks the beginning of an ambitious growth plan to expand the company’s footprint in multiple markets, including Kansas City, Minneapolis, Portland and Tampa.

“Phoenix is a perfect market for Loloft, and we are excited to partner with Workspace and the greater Phoenix economic development community to build a sustainable presence in the market,” Howell said. “We hope to replicate our success in Arkansas and are excited to offer our elevated flexible micro-warehousing and coworking solution to companies in Phoenix.”

In addition to the RZC investment, Loloft has raised more than $1 million. Part of that funding is from a seed fund managed by AOL co-founder Steve Case.