IBM in talks to take desks at WeWork as it searches for new NYC office

Company to buy memberships at 88 University Place while it looks for as much as 350K sf

New York /
Mar.March 13, 2017 01:20 PM

As it searches for a huge new office, IBM plans to temporarily send some of its Watson crew to WeWork’s Greenwich Village location, which is around the corner from the company’s Astor Place headquarters.

IBM is negotiating to buy memberships for its employees at WeWork’s 88 University Place location while it searches for a new office that could be as big as 350,000 square feet, sources told The Real Deal.

A spokesperson for WeWork declined to comment, and representatives for IBM could not be reached.

The number of desks IBM plans to take wasn’t clear, but it’s not unheard of for large companies to buy group memberships at WeWork for large numbers of employees. Microsoft last year inked a deal for 300 employees to take space at two WeWork locations in Chelsea and the Financial District for its Office 365 sales team.

And the shared-office provider’s largest corporate tenant, HSBC, took 300 desks in Hong Kong.

The 88 University location is just a short walk from Edward Minskoff’s 51 Astor Place, where IBM’s Watson group is the building’s 144,000-square-foot anchor tenant.

Fashion designer Elie Taharie bought the 11-story building from Himmel + Meringoff Properties for $70 million in 2015.

Industry sources said IBM is in talks with Normandy Real Estate Partners and Ares Management to anchor a new office building they’re considering developing nearby at 797-799 Broadway. A source close to Normandy, however, denied those allegations.


Related Articles

arrow_forward_ios
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
WeWork CEO Adam Neumann (Credit: Getty Images and iStock)
WeWork’s side businesses are fizzling
WeWork’s side businesses are fizzling
Sarah Pontius (Credit: Union College)
Another head rolls at WeWork
Another head rolls at WeWork
Upcoming issue: Surreal estate
Upcoming issue: Surreal estate
Upcoming issue: Surreal estate
Clockwise from top left: Charles Cohen, Douglas Durst and 657 West 57th Street Avenue (Getty, Google Maps)
Durst sues Landmark Theatres for $49M in damages, unpaid rent at UWS cinema
Durst sues Landmark Theatres for $49M in damages, unpaid rent at UWS cinema
MGM Growth Properties CEO James Stewart and Vici CEO Edward Pitoniak (MGM, Vici)
Casino REIT Vici Properties acquires MGM Growth Properties in $17B deal
Casino REIT Vici Properties acquires MGM Growth Properties in $17B deal
Residence Inn Austin Northwest, TownePlace Suites Austin Northwest and Chatham Lodging Trust CEO Jeffrey Fisher (Marriott, Chatham Lodging Trust)
Chatham Lodging Trust buys two Marriott-branded hotels in Austin for $71M
Chatham Lodging Trust buys two Marriott-branded hotels in Austin for $71M
essensys CEO Jeremy Bernard (iStock)
Flex workspace tech firm essensys eyes US, APAC expansion
Flex workspace tech firm essensys eyes US, APAC expansion
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...