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CBRE’s coworking arm Hana has selected 3 World Trade Center for its first New York City location, taking two floors in the 1,079-foot-tall building.
The deal with Hana, which opened its first location last year in Dallas, is a revenue-sharing arrangement with landlord Silverstein Properties, rather than a traditional lease. Hana, will manage 85K SF at the 2.5M SF office building, Crain’s New York Business reports. Of that space, 5K SF will be used for the group's headquarters, even though its parent, CBRE, is based in Los Angeles.
“The Financial District stood out to us as an area that has been revitalized and a place where high-growth industries like technology firms are moving,” Hana CEO Andrew Kupiec told Crain’s. “This is a location that made sense to us as a result of the demand.”
Hana does not lease space directly, but works with property owners to design and operate flexible offices space. While Silverstein has its own flexible workspace brand called Silver Suites, the company's executive vice president, Jeremy Moss, said the company is looking at how Hana will grow across the portfolio.
“We’re not going to be doing more Silver Suites locations at this moment,” he said.
Over the past few years, landlords and coworking companies across the country have been taking a hard look at how flexible workspace providers will continue to fit into the office leasing landscape.
Particularly in the wake of WeWork’s disastrous attempt to go public, many landlords are considering how to best provide the flexibility tenants are craving without creating risk to their business.
Increasingly, management agreements over standard leases are becoming the preferred option. In the last week, for example, flexible workspace provider Industrious announced two management agreements in the city, at 152 West 57th St. and 35 West 50th St., and The Real Deal reports Industrious signed a deal for a 100K SF location at 1 Penn Plaza.
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