The Real Deal New York

This co-working company is opening a huge outpost at the Chrysler Building

WeWork competitor Spaces signs a lease for 110K sf at iconic Midtown tower
By Rich Bockmann | September 11, 2018 05:45PM

The Chrysler Building (credit: Publicdomainpictures.net)

Co-working company Spaces is opening its largest New York City location yet at the Chrysler Building.

Spaces, a division of Regus parent company IWG, signed a lease for slightly more than 110,000 square feet at the iconic Midtown office tower, company representatives confirmed to The Real Deal.

Spaces is taking part of the first floor in the 77-story, 1,046-foot-tall tower at 405 Lexington Avenue, which will provide the company with a private elevator leading up to the co-working space on the seventh, eighth and ninth floors.

“This was a completely unique opportunity to create a ‘building within a building’ within one of the world’s most recognized landmark skyscrapers,” Michael Berretta, IWG’s vice president of network development, told TRD.

Financial terms of the deal were not available.

Jim Wenk, Brannan Moss and Kirill Azovtsev of JLL represented Spaces in the deal. An in-house team of Greg Conen and Rob Weller represented the landlords, Tishman Speyer and the Abu Dhabi Investment Council.

Regus has operated one of its short-term office locations on the 26th floor of the Chrysler Building for more than 15 years. Spaces, a Dutch firm that IWG purchased in 2015, launched in New York City that year with a 34,000-square-foot lease at the Falchi Building in Long Island City.

And when Regus’ lease at the Helmsley Building was coming due last year, it transitioned the location into a Spaces, which restacked in the building and got a private entrance on Vanderbilt Avenue as part of the 55,000-square-foot renewal.

Late last year, Spaces signed a 103,000-square-foot lease with Brookfield Property Partners at Manhattan West. In July it signed a 100,000-square-foot lease in Midtown South to take over the entire former United Charities Building at 287 Park Avenue South.