In this paper, we draw attention to the intersection between public policy and the spacing of organizations through Lefebvre’s triad. Examining the materiality of space through a tension-centered approach, we explore the processes of spatial creation informed by creative city policy (CCP) within and through artist-led organizations. We draw on longitudinal qualitative and ethnographic data to explore the shifting interrelationships between a macro-public policy and its implementation on microsites, developing our understanding of the tensional nature of materiality in organizational space and adding vital detail to our understanding of how CCP can act as both a potentializing and limiting force in creative production.