NEW YORK CITY-WeWork, a provider of flexible office space, has signed on for 74,000 square feet of space at 175 Varick St. in Hudson Square. The deals marks continued interest in downtown, amid disappearing availability.

According to data from CBRE, the area saw availability fall to 11% in the third quarter of 2011—compared to 14.3% the same period a year earlier.

WeWork, which was represented by Sean Black at Jones Lang LaSalle in the lease, will occupy the building following a complete build out of its space there, which is anticipated to be completed in early 2012. The company will occupy the ground floor, as well as floors three, four, five and eight.

Martin Meyer, a vice chairman and principal in the New York office of Colliers International, represented the building’s owner, Extell Development Co. He tells GlobeSt.com that WeWork, like other companies expressing interest in the Hudson Square area, was drawn there by two factors.

“One is the location,” Meyer says. “It’s a very young, happening location for this type of a company. The other is that they have the availability to have a building within a building.” Meyer goes on to explain that WeWork will have exclusive access to the building’s Charlton Street entrance—where its reception desk will be located.

Unusual, but not unheard of, Meyer says this amenity will also help “in terms of traffic in the elevators on Varick Street.”

With this lease, vacancy in the building will fall to roughly 5%. “We are going to be getting two floors in the building—but they will be coming up in the future,” Meyer says. There is advanced interest on those spaces, which will become available in six months and a year, Meyer adds.