The Real Deal New York

WeWork is taking a five-floor spread in Midtown East

The co-working firm is taking more than 100K sf at Normandy's 575 Lexington Avenue
By Christian Bautista | October 08, 2018 02:30PM

575 Lexington Avenue and Adam Neumann (Credit: Normandy Realty, 575 Lexington Avenue, and Getty Images)

WeWork just signed one of its largest lease deals this year, taking 117,000 square feet at 575 Lexington Avenue in Midtown.

The co-working firm’s new outpost will occupy five floors in the 35-story tower, the company told The Real Deal. The transaction covers the 12th, 14th, 15th, 16th and 17th floors, with floor plates ranging from 20,100 square feet to 29,800 square feet. The new location will be the company’s seventh in Midtown East.

WeWork, which recently announced its status as Manhattan’s largest office tenant, indicated that it is not done claiming space in the city.

“Given the incredible demand we’re seeing from companies wishing to join the WeWork community, we are constantly looking to expand our footprint in New York City,” said Granit Gjonbalaj, WeWork’s Chief Development Officer. Gjonbalaj added that the company now has over 50,000 members in the city.

The transaction stands as one of the largest lease transactions for WeWork in New York City this year. Its biggest lease, signed in August, was for 258,300 square feet at TH Real Estate’s 21 Penn Plaza. Other large transactions include 167,000 square feet at the Schaffer family’s 18 West 18th Street and 120,000 square feet at Abner Properties’ 154 West 14th Street.

The landlord, a joint venture between Normandy Real Estate Partner, Angelo Gordon & Co. and George Comfort & Sons, acquired the property for $510 million in 2015. The partners previously announced plans to build an amenities floor on the 14th floor, but that space has since been folded into WeWork’ lease.

The deal coincides with the growth of WeWork’s other divisions. Just last week, the company signed a pair of leases for its HQ by WeWork, which targets mid-sized tenants. The deals include 11,000 square feet for five floors at David Berley’s 130 Madison Avenue and 10,00- square feet for two floors Aurora Capital’s 483 Broadway.