Co-working giant Regus has struck a deal with Williams Equities to expand its space at 136 Madison Avenue.
Williams Equities announced today that it has arranged a long-term, 36,600 s/f extension that will extend Regus’ footprint at the building to four floors.
The deal comes after Regus parent, IWG, filed for Chapter 11 on over 100 US locations in what some see as a signal to landlords that, unless they are prepared to lower rents, IWG is willing to walk away from its lease obligations.
In a statement announcing the Madison Avenue deal, Michael T. Cohen, president of Colliers, who brokered the lease extension, did not divulge details of the lease.
However, he noted “the deal structure on the extension aligns the interests of Regus and Williams Equities and keeps those two full-floors occupied through this volatile market cycle.,”
Regus already occupies the entire 5th and 6th floors through an existing lease at 136 Madison. The new transaction extends the term through 2031.
“Regus is a clear co-working industry leader and globally valued brand,” a Williams Equities spokesperson said in a statement. “As a publicly traded company and profitable in 2019, Regus is unique in the sector. This new transaction represents our confidence they will emerge from their restructuring as a powerhouse and signals our hope that the relationship between our portfolio and Regus will continue long into the future.”
Cohen and Andrew Roos, vice chairman with Colliers, represented both Williams Equities and the tenant in the transaction.
Michael Berretta, Vice President Network Development North America, IWG PLC, said, “I am particularly proud of the long-standing relationship we have had at the building over the last 15 years.
“Michael Cohen and his team have been excellent to work with in an incredibly difficult period. Having our building owners work with us as partners is a critical part of the new trends evolving in commercial real estate and flexible workplaces. We are confident that the future market opportunity will continue and are very pleased to be able to showcase 136 Madison in our global portfolio offering.”
Located in the NoMad District between 31st and 32nd Streets, 136 Madison Avenue is a 17-story, 300,000 s/f turn-of-the-century property with a restored art deco entrance, 24-hours attended lobby and new passenger elevators.
As part of its new lease agreement, Regus will have access to the newly renovated 10,000 s/f roof deck with private elevator and views of the Empire State Building and the Chrysler Building.
IWG announced last week that it would place its Jersey-based subsidiary, Regus plc, into insolvency as part of a plan to trim four percent of its global portfolio as a response to the worldwide pandemic.
Founded in 1989, Regus has 10 times as many locations as WeWork.