Almost exactly one month after emerging from bankruptcy, WeWork is trying something new. The company announced on Wednesday that it has partnered with George Comfort & Sons to open its first-ever flexible work lounge at 575 Lexington Avenue in New York City.ย
The company announced the lounge is open to both WeWork members and all of the buildingโs tenants.ย
The lounge, located on the 14th floor of a 35-story, 745,000-square-foot office tower in Manhattan’s bustling Plaza District, opened on July 8. It features meeting rooms, collaboration areas, an outdoor terrace, and a complimentary barista bar.ย ย
“Weโre excited to deepen our partnership with 575 Lexington Avenue and to welcome their tenants into the WeWork community,” Whitney Anderson, senior director of real estate at WeWork, said. “Our workspace at this location is designed to foster new connections and flexible workstyles, two must-haves in todayโs world of work. Weโre confident that with this new partnership, WeWork will bring value to the building, its tenants, and our members.”ย
The rise of coworking spaces catering to niche industries and the trend of offering amenity-driven services within coworking centers are intensifying competition in the coworking industry, prompting larger workspace providers to build on their services and existing infrastructure.ย ย
In WeWorkโs case, the amenity-driven initiative reflects the companyโs broader strategic reorganization over the past year โ which includes adopting alternative lease structures to build on the value provided to both members and landlords.ย ย
Earlier this year, WeWork had emerged from Chapter 11 Bankruptcy under a new majority owner Yardi Systems. Last month, the company announced CEO David Tolley, who led the company through its bankruptcy proceedings, will step down, and named its new CEO John Santora. Bloomberg reports that WeWork renegotiated over 190 leases and exited more than 170 leases that the company described as unprofitable.ย ย
