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The Real Deal with CompStak Data: WeWork takes more Midtown South space in 115,000 sf deal

Midtown South: still proving popular for the start up scene.

WeWork takes more Midtown South space in 115,000 sf deal

January 30, 2014 07:24PM By Hiten Samtani

113-133 West 18th Street (Credit: PropertyShark) and Adam Neumann

113-133 West 18th Street (Credit: PropertyShark) and Adam Neumann

To better reap the rewards of Midtown South’s flourishing tech scene, Adam Neumann’s WeWork is taking about 115,000 square feet at 113-133 West 18th Street, The Real Dealhas learned. The shared office specialist will set up shop about a block away from Twitter’s new headquarters. WeWork declined to comment on the deal, in which it was represented by CBRE’s Derrick Ades, Timothy Dempsey and Barry Finkelman. All the brokers declined to comment, but data from CompStak indicates that WeWork will pay rents in the $50s per square foot over a 15-year term. It is unclear which brokers represented the 228,000-square-foot Wasserstein Enterprises-owned building, which is managed by ABS Partners Real Estate, according to PropertyShark. The deal gives WeWork over 650,000 square feet in Manhattan. Earlier this month, the company took 63,300 square feet at Himmel + Meringoff Properties’ 401 Park Avenue South, its first location in Midtown South. And in September, it inked an 86,000-square-foot lease at the Cunard Lines Building at 25 Broadway, as The Real Deal reported. The company is also reportedly in discussions to take a 500,000-square-foot space at the Brooklyn Navy Yard, and is close to snagging the entire space – about 300,000 square feet – at Rudin Management’s 110 Wall Street. Other shared office space providers are swooping into the area. TechSpace recently took 16,345 square feet at 18 West 18th Street, where it will pay similar rents to WeWork, Compstak data show. Meanwhile, social media heavyweight Twitter’s recent 140,000-square-foot deal at nearby 245-249 West 17th Street is likely to further stimulate the office market in the neighborhood, sources said.