The Real Deal New York

WeWork just inked the largest co-working deal of 2018

Unicorn startup signed a lease for 258K sf at 21 Penn Plaza
By Christian Bautista | August 15, 2018 03:45PM

21 Penn Plaza and Adam Neumann (Credit: SL Green and Getty Images)

WeWork just signed one of the largest co-working lease deals in Manhattan so far this year.

The firm inked a 258,344-square-foot lease at TH Real Estate’s 21 Penn Plaza in Midtown, The Real Deal has learned. The transaction covers 10 floors of the 16-story building, with WeWork floors three, four, five, six, nine, 11, 12, 15, 16 and 17. The company’s new outpost will have private offices, conference rooms and events spaces.

Granit Gjonbalaj, WeWork’s Chief Development Officer, said that the lease, signed Wednesday, “will further enhance” the company’s relationship with TH Real Estate. The two companies previously struck a deal for WeWork’s Devonshire Square location in London.

“WeWork’s creative concept attracts high level tenants, and we look forward to extending our relationship with them through this lease.” added Nadir Settles, the Managing Director of TH Real Estate.

TH Real Estate bought the property for $250 million in 2014. The 400,000-square-foot property was previously owned by Savanna and the Feil Organization.

The transaction appears to be the largest co-working lease signed in Manhattan so far this year, according to an analysis by The Real Deal. It’s only followed by WeWork’s lease for 167,000 square feet at the Schaffer family’s 18 West 18th Street which was signed in February.

WeWork accounted for the eight largest co-working deals in the borough this year, TRD’s analysis shows. The biggest transaction done by a WeWork rival involves Knotel, which took 49,000 square feet at Wharton Properties530-536 Broadway.