WeWork reworks 575 Lexington lease to provide high-end work lounge for tenants
WeWork is trying something new by turning the floor of a Manhattan office tower into a work lounge for the entire building, Bloomberg reported.
WeWork members and tenants of 575 Lexington Avenue will be able to use the 15,000-square-foot lounge, which includes a complimentary barista bar, meeting rooms and outdoor terrace.
The amenity space will “help enhance the daily experience of our current tenant base and drive future demand from companies in the market for a high-quality office environment,” George Comfort & Sons CEO Peter Duncan said in a statement.
WeWork was forced into Chapter 11 bankruptcy late last year, shedding billions in debt and unprofitable office leases from its portfolio. Co-founder and former CEO Adam Neumann attempted unsuccessfully to buy back the business. The company has since eliminated $4 billion in debt and secured $450 million in new financing to stay afloat while it restructures its business.
The Real Deal talked to Peter Greenspan, WeWork’s global head of real estate, earlier this year on the company’s strategy to turn the business around, reworking more than 190 leases.
The work lounge is part of WeWork’s new strategy to be creative with its real estate portfolio. Greenspan told TRD that most landlords “did decide that their best solution was to keep WeWork in the building,” Greenspan said. “We’re able to emerge now in a position of real strength with really great locations.”
-Christina Previte
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