As luxury residential buildings in NYC have expanded their amenities and event space to attract tenants, more of them are participating in a side business that rents out the space to non-tenants for one-day events.
Blace, an online event marketplace that launched in 2018, generated $5M in 2022 renting out event space in luxury rental buildings-starting at $5,000 for half a day and going up from there-to clients ranging from well-heeled individuals throwing private parties to multinational businesses hosting corporate events, according to a report in the New York Post.
The company expects to double its revenue this year as a wider range of upscale locations warm up to the concept-which not only creates a new revenue stream but can help market the building to potential new tenants. Blace, which splits its fees with the landlords, declined to disclose the size of the split.
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Blace has arrangements to use space in several upscale residential developments, including Chelsea Industrial, a 22K SF ground-floor space serving two luxury rental buildings in Chelsea, AVA High Line and Avalon West Chelsea; and Herald Square Jewel in Herald Towers on West 34th Street, a 4K SF venue with a view of the Empire State Building.
Blace also is renting out three different spaces in a residential complex known as The Denizen in Brooklyn's Bushwick neighborhood: a biophillic-themed lobby with a bar and a treehouse; a lounge with three fireplaces; and a test kitchen with industrial décor. It is renting out the penthouse of the Westbeth, a 19th century building with spectacular views of New York Harbor.
"Our idea was to take advantage of these gorgeous spaces in residential developments that generally tend to be underutilized," Blace COO Melissa Robinson told the Post.
One reason these lavish amenity spaces are underutilized is because there are a significant number of tenants who keep some of the most expensive Manhattan apartments as pied-a-terres-for occasional use.
Office building owners also have expanded their definitions of who is eligible to use amenity spaces in their buildings in recent months, with several giving tenants access to amenities throughout their global portfolios.
Tishman Speyer first established a suite of amenities at Rockefeller Center that are accessible to all tenants located throughout the complex. Tenants can schedule everything from yoga classes to meeting space using an app called ZO.
Earlier this year, Tishman extended the concept to office workers in any of the real estate firm's 41 buildings around the world, granting them reciprocal access to clubhouses, amenities and co-working spaces in buildings from San Francisco to Paris.
Brookfield Properties has launched "Activated Passport," which allows its tenants to access lounges in New York, DC, Houston, Denver and Los Angeles. Brookfield's Activated Passport Lounge in NYC is on one of the top floors of its new One Manhattan West skyscraper, which in addition to incredible skyline views offers a pantry, private offices, conference rooms and workstations.
Vornado Realty Trust is converting 160K SF of public space at Penn 1 into a center of hospitality. The 2.1M SF project has giant "social" staircases that face equally large flat screens for stadium-like sports watching, along with a multitude of restaurants, wellness, fitness, co-working, conference spaces-and a library with a fireplace-most of it open to the public.
To get access, food delivery or reserve conference spaces, tenants use the company's "WorkLife Live.Work.Do" app, which also validates your parking, the Post reported.
Vornado has added what it is calling a "bustle" to Penn 2-a 100K SF space with double-height ceilings for a 280-person "town hall," lounges and amenities, including a 17K SF roof deck with an indoor pavilion for all tenants.
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