Coworking Operator Regus Growing to 56K SF at 14 Penn Plaza
By Nicholas Rizzi April 2, 2024 3:40 pm
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Regus plans to nearly double down at 14 Penn Plaza, Commercial Observer has learned.
The coworking operator signed a 15-year lease to renew its 28,341 square feet and expand to 55,562 square feet in the 22-story building across the street from Pennsylvania Station, according to landlord Circle Realty Group. Asking rent was $60 per square foot.
The coworking operator, owned by IWG, opened the Penn Plaza location in 2021 as part of its post-pandemic expansion. That outpost has been fully occupied, so Regus decided to tack on another full floor of the property, said Circle Realty’s Jay Futersak.
Regus isn’t the only company recommitting to the building. The American Federation of Musicians and Employers’ Pension Fund (AFM-EPF) inked a 10-year renewal for its 17,903 square feet in 14 Penn Plaza, Futersak said. Asking rent was also $60 in that deal.
AFM-EPF is the pension fund manager of the American Federation of Musicians, which represents about 80,000 performers who play in orchestras, opera houses, Broadway shows, film and television scores, and studio recordings. It has had offices in 14 Penn Plaza for eight years, Futersak said.
Futersak, who represented both sides in both deals, said he was “thrilled” for the renewals and said it shows the demand for office space near Penn Station. 14 Penn is a midblock building that stretches from West 34th to West 35th Street between Seventh and Eighth avenues.
“It’s also a testament to the quality of the building and the level of activity we’re getting,” Futersak said. “Location is the key in all of this and I believe that 14 Penn Plaza trumps other locations.”
Nicholas Rizzi can be reached at nrizzi@commercialobserver.com.
