SharedSpaces is a WebRTC design prototype that creates a virtual media space where people can mingle and interact. Although you are in different locations, you appear side by side in front of a chosen backdrop. This interactive installation addresses spatial and social connectedness, stressing the importance of integrating architectural and spatial features to support complex social dynamics in mediated interaction. The tool engages users in manipulating their real-time video- streams, creatively co-designing a shared mediated space that fits a contextual need. It supports social dynamics by allowing users to draw and paint together and to move and resize video streams. Further, it enhances grounding and social cues by merging video- streams and space, representing users as if they were in the same space. Standard and easily available equipment is used. Recent user studies show that a seamless integration of space, social dynamics and shared activity benefits the experience of presence, naturalness, immersion/engagement and social connectedness.