Co-Working Spaces Upgrade Amenities, Target Corporate Clients

The co-working landscape is undergoing a significant transformation, moving from its image of casual, open-plan offices to a more sophisticated and private environment catering to corporate clients. This evolution includes rebranding efforts and the integration of high-end amenities, signaling a move away from the industry's earlier, more relaxed atmosphere.

According to Thiago Viana, head of communications at WeWork, current spaces are designed to be "elegant and sophisticated," with a notable absence of features like beer on tap. WeWork is also phasing out open floor plans where workers were in close proximity, opting instead for private offices, conference rooms, and dedicated floors. "We're getting new spaces that are high level, state-of-the-art, but keep the WeWork spirit," Viana stated.

This shift is driven by strong demand for "ready-to-go offices," swing space, and short-term workplaces. Broker Adam Henick of Current Real Estate Advisors attributes this demand, in part, to new artificial intelligence and finance companies that are uncertain about their future growth trajectories and require flexible office solutions. WeWork is particularly focusing on filling a market niche for co-working spaces designed for teams of 30 to 75 people, which Henick notes are scarce in New York City.

WeWork has recently opened a new location at 250 Broadway near City Hall and plans another at 245 Fifth Ave. in the Flatiron District. An even more upscale offering is coming to 511 Fifth Ave., where WeWork will manage the building's amenities across several floors.

This upscale pivot is not unique to WeWork. An analysis by Yardi, a real estate data and analytics firm, found that 132 co-working spots in the New York metropolitan area now offer at least three high-end amenities. Adam Stark, CEO of Stark Office Suites, observed that clients increasingly seek more upscale options. His company operates co-working locations under its newer, high-end "Excelsior" brand, including a space on the 23rd floor of the Durst Organization's 825 Third Ave.

Stark's latest venture is a 17,291-square-foot duplex at 717 Fifth Ave. This space features 27 private offices, executive lounges, and conference facilities, with monthly rates ranging from approximately $5,000 for a 125-square-foot office to $17,500 for larger corner offices. The buildout, designed by TPG Architecture, targets established professionals, family offices, investment funds, and international businesses seeking a more private and premium environment. Typical tenant agreements are for one to five years.

Another notable player is Industrious Reserve at Lever House, located at 390 Park Ave. This co-working hub offers private offices with views of Park Avenue, as well as access to an exclusive 3,500-square-foot club on the third floor, complete with outdoor terraces and indoor lounge areas. Pricing for Industrious Reserve ranges from $4,000 to $17,500 per desk monthly, with an average of $7,500. Access memberships for common area use are available for $3,000 per month. Jamie Hodari, co-founder and CEO of Industrious, highlighted features like private phone booths, high-speed Wi-Fi, unlimited printing, and meeting space hours.

Shiv Rana, CFO of Industrious and Building Operations and Experience for CBRE, noted that the Industrious Reserve spaces offer an elevated design and foster more social networking, positioning them competitively on Park Avenue. CBRE, which has a significant stake in Industrious, utilizes the lower floors of the Lever House building for its global financial headquarters.