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New York

SL Green to offer flex offices at One Vanderbilt

Office landlords flock to flexible options to attract tenants

SL Green’s director of leasing Steve Durels and One Vanderbilt. (SL Green, One Vanderbilt)
SL Green’s director of leasing Steve Durels and One Vanderbilt. (SL Green, One Vanderbilt)

One of Manhattan’s biggest office landlords is hopping on the flex-office bandwagon.

SL Green will dedicate the entire 54th floor of One Vanderbuilt, its 58-story Midtown East skyscraper, to flexible offices that will be known as Altus Suites, Crain’s reported.

The offices range in size from 6,300 to 7,500 square feet, and tenants will have access to the building’s high-end amenities, including a lounge, valet parking and fully stock pantries.

“It’s a high-design, high-service offering,” Steve Durels, SL Green’s director of leasing, told the publication. “It’s not your typical pre-built program.”

Leases for the Altus spaces can run between three and ten years, while a typical lease at One Vanderbilt is typically a 10- to 20-year deal.

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The flex space is under construction and is scheduled to be completed by December.

With the office market in dire straits due to the pandemic — availability in Manhattan once again hit an all-time high in April — landlords have been experimenting with converting some of their properties to flex spaces in an attempt to attract tenants who prefer not to commit to traditional long-term leases.

SL Green isn’t alone in giving flex space a try: On Wednesday, Tishman Speyer announced that it would open two locations of its own coworking brand, Studio, at 11 West 42nd Street and 175 Varick Street. With the new locations, the major landlord is beefing up its flex brand, which launched before the pandemic.

Other landlords are teaming up with flex-office operators, rather than launching their own spaces. Most recently, Rudin Management signed a 52,000-square-foot management agreement with Industrious at 32 Sixth Avenue in Tribeca to offer nine private suites. The site is slated to open in the fourth quarter.

[Crain’s] — Akiko Matsuda

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Commercial Real EstateCoworkingOffice MarketSL GreenTishman Speyer