WeWork, the flexible workspace operator that exited bankruptcy protection in June 2024, is back in growth mode in its home market of New York.
The company in a statement said it signed a 37,000-square-foot lease at 511 Fifth Ave., between 42nd and 43rd streets and one block west of Grand Central Terminal. The new location is scheduled to open in the fourth quarter and will span the ninth, 10th, 11th and 15th floors.
As part of the deal, WeWork is partnering with building ownership, Jeff Sutton of Wharton Properties and Aurora Capital Associates, to create what’s billed as the property’s signature amenity: a 9,000-square-foot coworking lounge designed as a third place and accessible to all building tenants, WeWork said. The owners recently completed a $40 million redevelopment of the building.
The lease marked the third new flexible-office location WeWork has announced in Manhattan since July and represents a net new site, a company spokesperson told CoStar News. In October, WeWork also expanded space at its downtown Toronto location.
Separately, WeWork has signed a slew of leases in New York and other cities in partnership with tech giant Amazon, which has been expanding its footprint since it called employees to return to the office full time and acknowledged it lacked sufficient space to accommodate everyone. To be sure, Amazon is said to be consolidating its overall office footprint.
WeWork’s latest lease comes as CEO John Santora has said New York, where WeWork was founded and operates over 3 million square feet, is critical for its growth. WeWork significantly pared back its operations before exiting bankruptcy and has been profitable as measured by earnings before interest, taxes, depreciation and amortization, or EBITDA, since the fourth quarter of 2024, the spokesperson said.
WeWork has said it was planning to spend up to $100 million last year to upgrade some locations while seeking a flagship New York location in a trophy office tower amid demand from members seeking well-located properties with appealing amenities.
That same demand has helped push Manhattan’s office leasing last year to its strongest level since at least 2019, according to brokerage studies, with top-dollar deals reaching record highs.
New York is one of WeWork’s strongest‑performing markets. The company’s occupancy rate in the city stands at 87% compared to 77% globally, the spokesperson said.
WeWork operates about 600 locations worldwide, including company-owned and franchised sites. With the new signing, it will have 36 locations in New York.
Located between Bryant Park and Grand Central, 511 Fifth recently underwent a full‑scale redevelopment that transformed the historic Beaux‑Arts property into what ownership describes as a modern, hospitality‑driven office destination. The project included a new glass‑box lobby and fully modernized elevators.
JLL represented both WeWork and ownership in the transaction, with Peter Riguardi representing WeWork and Mitch Konsker representing ownership.