Amazon Could Lease Lord & Taylor's Shuttered Fifth Avenue Flagship From New Owner WeWork
Amazon is still planning to expand its headcount in New York City, just not in Queens.
The tech giant is in talks to ink a deal at the famed Lord & Taylor building on Fifth Avenue, The Wall Street Journal reports, citing sources. Amazon could lease the whole building, which was recently bought by WeWork's investment arm.
Amazon is also considering taking just a portion of the building, according to the WSJ. It was not clear how far along the talks are, but one source said a traditional, long-term lease is on the table, with Amazon potentially paying more than $110 per SF.
It has been five months since Amazon made a stunning reversal on its plans to build a new headquarters in Long Island City, killing the deal because of political and community opposition.
Rumors have been swirling about where the e-commerce company would take space. Earlier this year, reports emerged Amazon was close to inking a deal at Brookfield’s Two Manhattan West project, but the private equity giant has strongly denied those rumors.
Amazon has 5,000 employees in the city, and already leases space at Brookfield’s 5 Manhattan West. The Farley Post office is also on Amazon's list of places for an office that would encompass hundreds of thousands of square feet, according to the WSJ.
WeWork Property Investors closed on its purchase of the Lord & Taylor building for $850M from Hudson's Bay Co. back in February. The real estate investment fund is jointly controlled by WeWork parent The We Company and Rhône Capital.
The coworking firm’s chief architect, Danish architecture superstar Bjarke Ingels, is leading the redesign of the 650K SF building at 424 Fifth Ave. The building is slated to serve as WeWork's global headquarters. It is unclear where or if WeWork would move — its current offices are in Chelsea — if Amazon takes over the building.
Meanwhile, Amazon is said to be considering Industry City in Brooklyn for a large logistics facility, Crain’s New York Business reported this week. A source told the publication it could rent as much as 1M SF. Amazon's first fulfillment center in city limits was a large fulfillment center on Staten Island.