Jay Suites signs 60K sf lease in Chelsea

“We’re finding rates that you’re never going to see again”

Juda Srour with 159 West 25th Street
Juda Srour with 159 West 25th Street (Loopnet, Getty)

WeWork is still struggling to achieve profitability, but the co-working space isn’t all doom and gloom.

Jay Suites just signed a 60,000-square-foot lease in Chelsea to open its 10th location. And the company’s co-founder said he got a bargain-bin price.

Juda Srour said he signed the lease with the Weinmann family at 159 West 25th Street at $30 per square foot. That’s a steep discount to the average Midtown South asking rent of $82.50 in the third quarter reported by CBRE.

“We only take deals that are very aggressive,” said Srour, who added that he’s been able to hunt out bargains in this market. “We’re finding rates that you’re never going to see again. … We’re talking below 2009 and 2010 [prices].”

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From left: Jay Suites' Juda Srour and 104 West 40th Street; Convene's Phoenix Porcelli and 101 Park Avenue (LoopNet, LinkedIn/Phoenix Porcelli, 101Park.com)
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Srour said the location will be split between his Jay Suites co-working business and the Jay Conference flag of events spaces. It will also have a rooftop area.

The company earlier this year signed leases to open an events space near Bryant Park and a co-working location at the Trump Organization’s 40 Wall Street.

The pandemic has been tough for the flex-office space business, which has struggled with fewer workers in their offices and less demand for events.

WeWork reported yesterday  that it no longer expects to be profitable this year and that it’s closing 40 locations to curb costs.