From Commercial Observer October 3, 2024 – link here

Switzerland-based coworking firm International Workplace Group (IWG) has signed a major deal at the Metropolitan Tower at 142 West 57th Street.

IWG inked a deal to take 93,400 square feet of office space on six floors of the 77-story mixed-use building owned by GDS Development (GDSNY) and Sabal Investment Holdings, according to GDSNY.

“We are delighted to partner with GDSNY at Met Tower to bring our best-in-class hybrid working services and amenities to a prime strategic location in the Plaza District of Manhattan,” IWG founder and CEO Mark Dixon said in a statement. “Demand for hybrid working solutions in New York City continues to increase as companies of all sizes empower their people to work more flexibly.”

Spokespeople for GDSNY and Sabal declined to provide the length of the lease and asking rent, but a report from Newmark found office rents in Midtown Manhattan averaged $79.55 per square foot during the second quarter of 2024.

A spokesperson for IWG did not immediately respond to a request for comment. It was unclear who brokered the deal.

This week, IWG will open its new space on floors six through 11 of the 531,657-square-foot Met Tower to members as part of its workplace brand Spaces, which has over 587 locations across the globe, according to its website. IWG, which provides coworking space in more than 1,500 centers across the U.S. and 4,000 locations worldwide, has three other workplace brands called Regus, Signature and HQ.

The deal comes after IWG said it added 867 new locations globally in 2023, and after it tacked on 17 locations to its portfolio in California, bringing its number of spots in the Golden State to 196, as Commercial Observer previously reported.

GDSNY and Sabal obtained a controlling stake in the 18-story, 283,000-square-foot office condominium portion of the Midtown tower between West 56th and 57th streets in March for $82.6 million, giving them ownership of the building.

“GDSNY is thrilled to welcome IWG to Met Tower,” GDSNY CEO Michael Kirchmann said in a statement. “We continue to identify and deliver exceptional-quality commercial real estate products and workplaces to the Manhattan market.”

The Met Tower was completed in 1986 and holds a range of residential units, office and retail space.