NEW YORK CITY-In yet another demonstration of the allure of the Downtown market, and the new inventory coming online there, Brookfield Place (formerly 3 World Financial Center) has signed a new tenant, according to the Commercial Observer. Regus, the office provider, purchased the entire 24th floor of the building, comprising 54,991 square feet of space.
The tenant was represented in the deal by CBRE’s Mark Ravesloot, vice chairman, and Scott Sloves, SVP. Building owner Brookfield was represented by David Cheikin, VP of leasing for the developer, with an assist from John Wheeler, managing director of Jones Lang LaSalle.
Regus declined to reveal the purchase price. Brookfield, which will rename the World Financial complex as Brookfield Place this fall, is spending close to $250 million on renovations, according to statements made to the Observer by Brookfield’s Jerry Larkin, director of leasing.
Renovations will include a new entrance to the Fulton Street transit hub, new lobbies for the buildings and reconfiguring retail and dining facilities. Brookfield will add dining terraces, a 24,000-square-foot-marketplace and almost 1,000 seats for outdoor dining, Mr. Larkin reveals. This transaction marks the third tenant for 3 World Financial, the Observer reports. Royal Bank of Canada and American Express previously signed on.
The move by Regus is a reminder of the increasing significance of the independent worker as the company likely didn’t have enough demand in the past to require so much—or such high caliber—space. In a statement to GlobeSt.com, a Regus executive made clear that the company wanted to create a Downtown presence. “We are very encouraged by all the growth taking place in Lower Manhattan and we are enthused to gain a foothold in such an exciting part of the city,” says Michael Berretta, VP of business development “We look forward to continuing our ongoing global relationship with Brookfield.”
Brookfield declined to respond to a request for comment.