1450 Broadway/ Image courtesy of PropertyShark, photo by Kate Leonova
NEW YORK CITY—WeWork has signed a lease for four floors totaling approximately 57,000 square feet at 1450 Broadway. The property is owned by Zar Group. The co-working office space provider points to the Times Square location and the floor plates ranging between 13,829 and 14,385 square feet as some of the property's key strengths.
Zar Group bought the 42-story structure that was originally constructed in May 2011 for $204 million, according to PropertyShark.
WeWork will take possession of the building at the beginning of January, and expects to open the location in the first half of 2019.
“With over 50,000 members and around 60 locations in New York, the demand for WeWork in the city shows no signs of stopping,” says WeWork's chief development officer, Granit Gjonbalaj.
A WeWork spokesperson tells GlobeSt.com that the company is seeing demand across Manhattan but it is particularly strong in Midtown and Lower Manhattan. He adds they expect to secure more space in these areas in the coming months.
A Savills Studley Q3 2018 New York Office report notes that since the beginning of 2017 more than 90 leases over 100,000 square feet have been signed, compared to 73 in the prior seven quarters. Co-working providers represented nine of the 100,000-plus square foot deals. The report further highlights that WeWork added 500,000 square feet in Q3 2018. As to some of its competition, Spaces leased just over 300,000 square feet, including three big blocks at 405 Lexington Avenue, 287 Park Avenue South and 787 11th Avenue. Knotel added five locations, leasing more than 1.4 million square feet.
The spokesperson states people are wanting to work more in collaborative environments that allow them to engage in a meaningful manner. “What's most exciting is that, despite the rapid growth of the sector, it is still in its infancy. As such, we're confident that the demand for shared, flexible workspaces will only grow in the coming years,” he says.
Mitch Konsker of JLL represented the landlord on the 1450 Broadway lease, with Jeff Winick from Winick Realty representing WeWork. David Sadkin led the internal efforts of WeWork.
Amidst WeWork's active pace of leasing, there is still talk of SoftBank's taking a majority-interest stake in the flexible office space company.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
