SL Green Latest Landlord to Launch Its Own Flex Office Business

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SL Green Realty Corp. is jumping into the growing trend of flexible office space.

New York City’s largest office landlord has launched its own flexible office space, Altus Suites, at One Vanderbilt, which offers smaller spaces and shorter-term lease options, Crain’s New York Business first reported.

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The entire 54th floor of One Vanderbilt will be dedicated to the real estate investment trust’s new venture, and SL Green may add an additional floor of space after it’s leased up, said a spokesperson for the company. The 54th floor contains more than 26,770 square feet of rentable space, according to the floor plans.

The size of the offices will range from 6,300 to 7,500 square feet, and leases can be for as little as three years or as long as 10 years, significantly shorter than the normally 10- to 20-year deals in the tower, the spokesperson said.

SL Green first came up with the concept last year, just after the pandemic began, which caused an increasing surge in demand for flex office space. Leases at One Vanderbilt are usually for a full floor, but Altus Suites is intended to let companies access the building — and its bourgeois amenities — with a smaller lease, per the spokesperson. 

The amenities include executive showers, VIP access to the building’s restaurants — including Le Pavillon — and access to the third-floor lounge and meeting space. The space is expected to be open in December.

SL Green joins a growing number of landlords and brokerages that have launched their own flex office platform, after competition from the likes of WeWork and Knotel.

Tishman Speyer started Studio in 2018 and recently rolled it out to two more Manhattan buildings, including in a space formerly occupied by WeWork. And brokerage Newmark recently bought the bankrupt Knotel for $70 million.

CBRE launched its own flex office platform Hana, which just opened its first New York City location on two floors at Silverstein Properties3 World Trade Center.

“We are delighted that Hana chose 3 World Trade Center as its first location in New York City,” Jeremy Moss, executive vice president for leasing at Silverstein, said in a statement. “Hana’s thoughtfully designed spaces and menu of services will complement our existing INSPIRE amenity program and give companies at the World Trade Center campus unprecedented flexibility.”

Users of CBRE’s Hana also have access to amenities, including the 73-story building’s outdoor terrace and cafe.

SL Green has no plans, as of yet, to expand Altus Suites past One Vanderbilt, but it has already received inquiries from smaller-sized tenants.