Coworking Firm Spaces Takes 111K SF at Chrysler Building
Shared office provider Spaces has chosen one of New York’s most iconic properties for its next location in the city after inking a lease for nearly 111,000 square feet at the Chrysler Building at 405 Lexington Avenue.
The coworking firm inked a 15-year deal for 110,989 square feet at the 77-story, 1.2-million-square-foot office tower between East 42nd and East 43rd Streets, according to a press release from JLL, which represented Spaces in the transaction. The company is expected to take occupancy of the space, which spans the entire seventh through ninth floors, in the early second quarter of 2019.
Asking rent in the deal was $65 per square foot, according to sources with knowledge of the transaction. JLL’s Jim Wenk and Kirill Azovtsev represented Spaces in negotiations, while landlord Tishman Speyer was represented in-house by Gregory Conen and Robert Weller.
Spaces “is keen on making the Chrysler Building its Midtown ‘mothership,’ ” Wenk said in a press release announcing the deal. He added that the shared workspace provider will have a private entrance on East 42nd Street enabling its members to directly access the space.
The Real Deal first reported the news of the transaction.
The location adds to the Amsterdam-based coworking provider’s growing footprint in New York City, where it has three workspaces currently open, another three set to open by the end of this year and an additional two slated to open in 2019.
Recent deals inked by Spaces include a lease signed last year for 103,000 square feet at Brookfield Property Partners’ Manhattan West development, as well as more recent leases for nearly 31,000 square feet at the redeveloped Pioneer Building in Downtown Brooklyn and all 101,000 square feet of office space at 287 Park Avenue South in the Flatiron District.
“In today’s market, we know that scale and flexibility are crucial for a company’s growth,” Michael Berretta, the vice president of network development for Spaces parent company IWG, said in a statement. “Nowhere in the country is this more evident than in New York City.”
Representatives for Tishman Speyer declined to comment.
Other tenants at the Chrysler Building include law firms Moses & Singer and Clyde & Co and investment banking firm Maxim Group.