The Real Deal New York

WeWork to expand at 25 Broadway

Shared office space provider to take further 42,371 square feet at Downtown building
By Hiten Samtani | March 05, 2014 06:57PM

Shared office space provider WeWork is in advanced discussions to up its presence at ACTA Realty’s Cunard Lines Building at 25 Broadway, The Real Deal has learned. WeWork is looking to take the entire fifth floor of about 42,371 square feet, which would give it just under 129,000 square feet at the building.

WeWork is likely to pay rents starting in the low-$30s for the fifth-floor space at the 22-story, 858,000-square-foot neo-Renaissance tower, according to CompStak data. That’s in line with the $56 million September deal in which the company took 86,000 square feet on the entire ninth and 10th floors of the building, as TRD reported.

CBRE’s Richard Levine, Gary Kamenetsky, Bruce Surry and Stephen Siegel represent the building, while their colleagues Derrick Ades and Barry Finkelman are representing WeWork in the discussions. None of the brokers could be reached for comment by press time.

WeWork, founded by Adam Neumann, is among the top players in the explosive shared office space market, with an estimated footprint of more than 650,000 square feet in New York City. Recent deals include a 115,000-square-foot deal at 113-133 West 18th Street, and a 63,300-square-foot deal at 401 Park Avenue South.

  • Guest

    Does anybody think this model can work? I have nothing against Adam or the company, in fact I wish them well. I just don’t understand how they could possibly make money? Please explain it to me

  • Guest

    This is like the co-location data center craze of the 1990’s where telecom companies leased huge amounts of underutilized space and poured a lot of money into that space for a projected demand that never materialized. Virtually all of the spaces now being leased by WeWork are underutilized, hard to lease spaces that the Landlords are happy to lease to them because they’ve been vacant or leased at low rates for a long time and WeWork will be improving them at their cost. And the Landlords know that if WeWork goes belly-up they will benefit from the improvements WeWork made to the space. WeWork will be looking for a full or partial exit or refinancing in the near future because they know that the amount of space they’ve been able to lock-up will be attractive to somebody who buys into their story but it’s long term success is a crap-shoot.

  • HashtagHUH

    Are there enough entrepreneurs looking for $500 month to month office space to make this work??? To be cash flow positive, or to even float on rent of 650k sf, off month to month entrepreneurs, just doesn’t ring possible to me. I may be wrong, but sounds a little off.