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WeWork Takes 120,000 Square Feet at 222 Broadway

Posted on April 6, 2013 ยท Posted in Leasing

If you want to know about the future of collaborative workspace look at the new 120,000 square foot lease signed by WeWork at 222 Broadway. I know that similar operations have signed leases in the 20,000 to 30,0000 square foot range but WeWork’s new lease is a game changer and hopefully it will cause commercial real estate companies and tenant advisors to begin taking a serious look at the movement that aims to redefine the role of traditional office space.

For starters the lease is a 16-year term and the company will occupy 8 of the building’s 32 floors. Yes you read that correctly 16-years for 120,000 square feet of space and by the way, this is the company’s 7th location in Manhattan. In fact we previously discussed the growth of co-working space which at the time was equal to 400 Starbucks.

I think this should serve as a serious wakeup call to executive suite providers who stand to lose the most from the growth of co-working which is taking away clients that would traditionally grab e-suite space. I know that a number of top providers are starting to add shared desk space to new center build-outs but that reactionary move isn’t going to do much until providers begin to add dedicated shared space centers.

Two years ago, if I told you that a new 120,000 square foot lease was signed in Lower Manhattan you’d immediately think of Merrill Lynch or Bank of America not a co-working company … but that’s how far the movement has come in just a few short years.