What was once a scene filled with casually dressed tech enthusiasts and relaxed former college students is now transforming. The latest wave of co-working spaces is redefining its image, adopting a more polished and professional approach.
“Our spaces are elegant and sophisticated,” remarked Thiago Viana, the communications head at WeWork. “We’ve moved on from having beer on tap.”
This transformation also signifies a shift in physical design. WeWork has announced that the traditional open office layout, where workers are bunched together at long desks, is becoming outdated.
“If you walk into any WeWork location in New York City now, you’ll notice private offices, conference areas, and dedicated floors,” Viana explained. “We’re opening new spaces that are state-of-the-art, yet still embody that WeWork vibe.”
Broker Adam Henick from Current Real Estate Advisors highlighted a strong demand from employers and employees alike for fully equipped offices, flexible spaces, and short-term options. This trend is fueled by emerging AI and finance firms uncertain about their future trajectories.
In this evolving market, co-working options that can accommodate teams of 30 to 75 are hard to find, a gap WeWork aims to address, according to Henick.
A new WeWork facility opened at 250 Broadway near City Hall, with plans for another site at 245 Fifth Ave in the Flatiron District.
WeWork is even planning a more upscale venue on floors 9 to 11 and 15 of 511 Fifth Ave. They will also oversee the amenities of that building.
But it’s not just WeWork that’s aiming for a more sophisticated clientele.
Currently, there are 132 co-working locations in the metropolitan area that provide at least three high-end features, according to data from Yardi, a real estate analytics firm.
“Clients often come in and say, ‘This is nice, but do you have something a bit fancier?’” said Adam Stark, CEO of Stark Office Suites, which operates locations on higher floors at One Grand Central Pl. and 110 E. 59th St.
His newer high-end offering, the “Excelsior” brand, is situated on the 23rd floor of the Durst Organization’s 825 Third Ave.
“We filled that in record time,” Stark noted. “The private Excelsior offices went quickly.”
Stark’s latest venture is a newly launched duplex providing 17,291 square feet of interconnected workspace on the 12th and 14th floors at 717 Fifth Ave, located across from Trump Tower.
Views from the 717 location stretch north to the General Motors Building at East 59th St., while Excelsior’s offices also face Fifth Ave. Notably, one conference room was previously the private office of the CEO of the Chinese firm that owned the building before moving to the Waldorf Astoria after renovation.
“The lobby downstairs has a touch of Waldorf hospitality,” Stark said.
This space features 27 private offices, executive lounges, and conference facilities. Introductory rates start at about $5,000 per month for a 125-square-foot office with windows, scaling up to $17,500 for spacious corner offices of 375 square feet with views of Central Park.
Corridors host desks for assistants, shared copy facilities, and a large pantry. There are also team rooms, smaller non-windowed offices, and phone rooms for private conversations. By early October, 35% of the offices had already been occupied. Access to the building’s upscale amenities is included for all users.
Excelsior’s design, crafted by TPG Architecture, targets established businesses, family offices, investment funds, entrepreneurs, specialized attorneys, and international firms looking for a more exclusive and premium setting.
Leases typically run from one to five years, with two years often being the preference. Stark himself has a lease for over 21 years.
Just a few blocks away, the new Industrious Reserve at Lever House, located at 390 Park Ave, stands out as a hospitality-infused co-working hub. It occupies the fifth and sixth floors, with most private offices offering views along Park Avenue.
Despite having their own cozy seating and café areas, the two floors also provide access to the elegant Lever Club on the third floor, which features expansive outdoor terraces along with various indoor spaces, bar and food options.
Pricing for spaces at the Industrious Reserve range from $4,000 per desk to $17,500 monthly, averaging around $7,500 per desk.
“For those not needing a dedicated office but who prefer working in communal areas, we’ve got an access membership available for $3,000 monthly,” explained Jamie Hodari, co-founder and CEO of Industrious.
The facilities include private phone booths, high-speed Wi-Fi, and unlimited color printing, along with office supplies and several hours of private meeting space available each month.
“Compared to others in the area, our offerings on Park Avenue are quite competitive,” noted Shiv Rana, CFO of Industrious and Building Operations and Experience for CBRE, which holds a significant stake in Industrious and operates the lower four floors as its global financial headquarters. “We deliver elevated design coupled with enhanced social networking opportunities.”
