WeWork pushes its way downtown

WeWork has plans for expansion in Lower Manhattan, where its growth has slowed compared to its Midtown and Midtown South offices.

The company signed a 200,000 square foot lease to take up the top floors at 199 Water Street in the Financial District and is also in talks to take up 100,000 square feet at 120 Broadway.

Just last year, WeWork become the city’s largest occupier of office space at 5.3 million square feet, with the majority of that growth coming from Midtown and Midtown South.

“Lower Manhattan is probably where we see the strongest demand and growth from enterprise companies,” according to a WeWork spokesman. “In the Flatiron District and Chelsea, there are a lot of tech companies. But in the Financial District, we’re seeing demand from all kinds of companies. It is an area of focus for us.”

The growth of the coworking industry has left many to question how much it will disrupt the traditional office leasing market in the area. Some experts have explored the idea that many buildings will operate similarly to hotel properties, with buildings being owned by landlords, but operated by coworking companies.

WeWork’s recent downtown deals shows the company’s persistence to meet demand, although some landlords have pushed back. For example, the company was in negotiation to take over 200,000 square feet of space at 1 World Trade Center, but were pushed aside by the building’s owners.

Overall, it is clear that many landlords are still eager in welcoming the company, while others may have their reservations.