The Real Deal New York

Temp office firm announces 3 new NYC locations

International firm set to open 88,000 square feet of space south of 59th Street

February 27, 2012 05:30PM
By Katherine Clarke

From left: Colleen Susini, director for NYC at Regus, 112 West 34th Street, 57 West 57th Street and 411 Lafayette Street

International flexi-office space provider Regus, which is known for offering flexible long- and short-term leasing solutions for singletons and large corporations, has signed three new leases already in 2012, all south of 59th Street, Colleen Susini, director for the New York area at the company, told The Real Deal today.

Regus has signed a 15-year lease for 52,000 square feet of space at 112 West 34th Street, a former children’s apparel manufacturing building owned by New York landlord Charles Cohen. It has also inked a deal for 16,000 square feet at 411 Lafayette Street near Astor Place and for 20,000 square feet of space at 57 West 57th Street in Midtown. All of the leases have a term of approximately 15 years, Susini said, declining to provide the rents.

“Last year we opened five [new locations,]” Susini said, “so we are definitely in continuing growth mode in Manhattan. The plan is to almost double [the number of locations we have] nationally in the next couple of years.”

Susini said the company was attracted to the 34th Street location, the leasing of which was first reported by the Observer and replaces Regus’ space at nearby 11 Penn Plaza, because of its ease of commuting for out-of-towners. The Lafayette location, next to another temporary office provider Sunshine Suites, was in an area in which Regus had not yet been present.

“We’re always looking to have a footprint where we don’t [currently,]” she said.

Regus said it isn’t too concerned about clashing with the adjacent provider Sunshine Suites, which offers office cubicles for rent. They’re very different types of businesses, Susini explained.

“They’re cubes,” she said of Sunshine. “What sets Regus apart is we have business lounges [around the world.] Just to be able to have a network sets us apart.”

Regus has1,200 business centers in 85 countries, according to their website.

Another added bonus of Regus’ leasing system, a spokesperson said, is volume.

“You can easily turn a lot of deals for companies looking for smaller spaces that other landlords can’t accommodate,” because of their layouts, he said.

Richard Rosenhaus of Richard Rosenhaus Real Estate brokered the deal for Regus at 411 Lafayette Street and at 57 West 57th Street, while Mark Ravesloot and William Lacovelli of CBRE represented the company in the 34th Street deal. Rosenhaus could immediately be reached for comment.

Ravesloot said the 34th Street property “provided a great opportunity for [Regus] to be in that Penn Station market for a competitive price.” The property is more modern than Regus’ previous digs at Penn Plaza, he said, having recently undergone a massive renovation by the landlord.

As The Real Deal previously reported, Regus opened a 40,000-square-foot space at the William Kaufman Organization’s 77 Water Street and a 13,000-square-foot space at J.A.B. Madison Associates’ 477 Madison Avenue last November.

Susini said several more leases, currently in negotiations, will be announced later this year.

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