WeWork Leases Entire Building at 35 E. 21st St.
The co-working office space giant takes over Tumblr’s prior headquarters for its new HQ by WeWork program.
NEW YORK CITY—WeWork has inked a deal to lease Centaur Properties’ entire 10-story building, occupying 100,000 square feet at 35 E. 21 St. Although additional terms of the lease were not disclosed, a source with knowledge of the deal tells GlobeSt.com that the flexible and co-working office space provider has scheduled its move-in for November.
Newmark Knight Frank’s Daniel Levine represented the building owner Centaur Properties.
The building will house the company’s product and service, HQ by WeWork. The company launched the program to provide options for medium-sized businesses, having 11 to 250 employees. It explains these companies might not yet be ready to sign a 10-year lease, put down a security deposit, or invest in construction. Yet WeWork notes there are approximately 1.1 million mid-sized businesses in the US which employ approximately 30 million people.
HQ by WeWork currently has spaces in New York and San Francisco, and will be opening in other major cities in the upcoming months. The company is on track to dedicating approximately one million square feet to this initiative by next summer. WeWork already has secured 600,000 square feet for this program, according to its spokesperson.
“Since we launched HQ by WeWork in July, hundreds of companies have come to us looking for private, flexible and cost-efficient spaces. We are committed to providing them with a working space that allows them to reflect their identity, while enjoying the benefits of being a part of the WeWork community,” says Granit Gjonbalaj, WeWork’s chief development officer.
He notes this latest deal builds on WeWork’s success in recently becoming the largest private occupier of office space in Manhattan, with 5.3 million square feet. Gjonbalaj also states the company has grown to approximately 300,000 members.
“Located at the intersection of Gramercy Park and Madison Square Garden, 35 E. 21 St. has long been a magnet for innovative companies,” says Harlan Berger, Centaur’s founder and CEO.
Tumblr’s headquarters were previously located at the property. The social networking and blogging company was founded in 2007. In May 2013, Yahoo! acquired Tumblr for $1.1 billion in cash, resulting in its office relocation. In June 2017, Verizon Communications acquired Yahoo! for $4.5 billion.