The Real Deal New York

Regus to launch Spaces co-working concept in Manhattan, at the Helmsley Building

Executive-office company inked a 55K sf renewal at RXR's 230 Park
By Rich Bockmann | July 10, 2017 02:25PM

Regus CEO Mark Dixon and 230 Park Avenue (Credit: RXR)

Regus plans to launch its co-working concept Spaces in Manhattan at RXR Realty’s Helmsley Building, where the executive-suites company recently inked a 55,000-square-foot renewal.

Spaces, Regus’ answer to the co-working giant WeWork, has 35 locations already open worldwide and another 28 scheduled to open in the near future, according to the company’s website.

In New York, the sole location is at the Falchi Building in Long Island City, where Regus signed a 34,000-square-foot lease in 2015. A representative for the company was not immediately available for comment.

The company’s been a longtime tenant at RXR’s Helmsley Building at 230 Park Avenue near Grand Central Terminal, and when its lease came due, Regus took the opportunity to reposition its space.

As part of the 15-year deal, Regus is relocating from the building’s 10th floor to space on the third and fourth floors, and will enjoy a private entrance on Vanderbilt Avenue.

“It presented a unique opportunity for Regus to secure a building-within-a-building presence,” said Transwestern’s Patrick Heeg, formerly of JLL, who represented the tenant in the negotiations along with JLL’s Jim Wenk.

Asking rent for the space was in the low-$80s per square foot. RXR’s Jordan Berger represented the landlord in-house.

RXR bought the iconic, 1.4 million-square-foot Helmsley Building in partnership with Blackstone Group in 2015 for $1.2 billion.