Amazon and WeWork are partnering again, this time at Five Manhattan West in Hudson Yards. The coworking firm has executed a 112,265-square-foot sublease at the Brookfield Properties-owned office building for the e-commerce giant to secure space that was previously held by the Interpublic Group of Companies.
A 16-story office building, Five Manhattan West also houses tenants like financial services company Betterment and J.P. Morgan Chase.
The transaction was facilitated by Cushman & Wakefield’s team of Bruce Mosler, Anthony LoPresti, Theodora Livadiotis, David Mosler and Ethan Silverstein representing WeWork. JLL’s Scott Panzer, Shannon Rzeznikiewicz, Robert Romano and Carlee Palmer acted on behalf of the sublandlord.
Amazon, already occupying space in Brookfield’s building on 10th Avenue between West 31st and 33rd streets, has increased its presence there. Its initial lease eight years ago covered 360,000 square feet and spanned the entire sixth and seventh floors, as well as parts of the eighth and 10th levels. With this new sublease, Amazon’s total footprint in the Hudson Yards building now reaches approximately 472,000 square feet.
The e-commerce firm’s utilization of flexible workspace coincides with its return-to-office policy, which initially required corporate employees to be in the office five days a week starting in January, although that mandate has since been modified. Deals such as the sublease contracted at Five Manhattan West highlight a growing trend for Amazon and WeWork, which have positioned themselves as partners in supporting the former’s real estate strategy. The arrangement offers increased flexibility for both Amazon and the landlord.
The company benefits from the ability to optimize its space usage and potentially exit the area without being locked into a long-term lease. Meanwhile, the landlord gains options should Amazon’s occupancy needs change.
This isn’t the first time that these companies have worked together. Last November, WeWork signed a 304,000-square-foot lease at Vornado Realty Trust’s 330 W. 34th St., also on Amazon’s behalf. Then, in December, WeWork secured 303,741 square feet at Vornado Realty Trust’s 330 W. 34th St. for Amazon.
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