WeWork Targets 1 Million Square Feet Through Its HQ by WeWork Initiative in 2019
Coworking Firm Signs Lease to Turn 35 East 21st Street into Midsized Business Hub
WeWork's new 100,000-square-foot location off of East 21st Street in New York City's Grammercy Park is set to open in the first half of 2019.
WeWork, the country’s largest shared workspace provider, signed a lease for the entirety of 35 East 21st Street, a corner office tower in New York City's Gramercy Park that's part of its push to grab 1 million square feet for midsized businesses by next summer.
WeWork said it plans to take possession of the 10-story building in November and that the location that spans 100,000 square feet may be open for business in the first half of 2019.
WeWork is courting the medium-sized companies, those with 11 to 250 employees, through an initiative termed HQ by WeWork. WeWork said it expects to have the 1 million square feet in major markets under the HQ by WeWork umbrella.
The company noted its intention to roll out HQ by WeWork "into major markets in the coming weeks and months." A mix of big and smaller blocks of space is expected, a company spokesman told CoStar News.
In August, WeWork announced its first HQ by WeWork location outside of New York at 800 Market Street in San Francisco, where it took 17,500 square feet. That month, CoStar News reported it had about 400,000 square feet of total HQ by WeWork space.
"Since we launched HQ by WeWork in July, hundreds of companies have come to us looking for private, flexible and cost-efficient spaces. We are committed to providing them with a working space that allows them to reflect their identity, while enjoying the benefits of being a part of the WeWork community," said Granit Gjonbalaj, chief development officer at WeWork.
He added that "35 East 21 St. has a rich tradition of hosting innovative companies and we are delighted to be taking the entire building comprising approximately 100,000 square feet. This builds on the significant footprint we have in Manhattan, where we recently became the largest private occupier of office space, and will allow us to better serve our growing community of approximately 300,000 members."
Office vacancy rates within Gramercy Park have declined 0.4 percent year-over-year, CoStar research shows. Social media and microblogging firm Tumblr formerly resided within 35 East 21st Street as a corporate headquarters. This month, it relocated to 770 Broadway in Greenwich Village, also the building housing Facebook’s headquarters, according to CoStar research.
"Located at the intersection of Gramercy Park and Madison Square Gardens, 35 East 21 Street has long been a magnet for innovative companies. We were determined to continue this tradition and are delighted to welcome WeWork, and its members, to the building," said Harlan Berger, chief executive of Centaur Properties, the building’s landlord.
The masonry building was constructed in 1905 and last renovated in 1985, per CoStar data. Public records show Centaur Properties acquired the building in 1999 and in 2014 had $15 million in mortgage notes on the building.