As some building owners revamp their HVAC systems and grow their outdoor areas for a post-Covid world, landlords who already boast top-tier spaces are hedging their bets in other ways.
SL Green, New York's biggest landlord (with more than 28 million square feet of office space across NYC), announced the launch of Altis Suites this week, offering up the entire 54th floor of One Vanderbilt as a co-working-style space akin to WeWork—but far more lavish.
As Crain's writes, flex tenants of its $3 billion tower will have access to all of its luxe amenities, including the VIP restaurant Le Pavillon, the third-floor lounge and meeting space, the Vandy Club, executive showers, fully stocked fridges and valet parking.
The 54th floor boasts 26,770 square feet of rentable area that will be divided up into spaces ranging from 6,300 to 7,500 square feet. Lease offerings for these units will run between three to 10 years (10 to 20 is the standard).
Construction on the floor is currently underway and is expected to wrap this December. SL Green's reps say they may expand to another floor if the demand is there.
SL Green's flex plans were initiated last year as a response to the pandemic. Like other landlords in the city, the company saw a decline in leasing and an increase in the demand for flex space.
Crain's cites a December 2020 CBRE report that found among 77 major global companies surveyed, "86 percent anticipate using flex space as a key part of their real estate strategies going forward. Additionally, 82 percent said they will favor buildings that include flex-space offerings."
Other big names now offering, and quickly growing, their flex space portfolios include Tishman Speyer, Durst Organization, Newmark and CBRE—though some jumped on the bandwagon pre-pandemic as a response to competition coming from companies like WeWork and Knotel.
- Midtown (Urbanize NYC)