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Convene Furthers RXR Realty Partnership with Two New Locations

Workspace Provider Leases 116,000 SF at 530 Fifth, Opens Amenity Space at 75 Rockefeller Plaza
September 14, 2018
Full-service meeting and flexible workspace provider Convene has sealed its fourth deal with RXR Realty, signing a 116,000-square-foot lease for the New York-based developer’s office building at 530 Fifth Ave in New York City.

Convene will take four full floors of the 560,000-square-foot Times Square area property, effectively anchoring the building. Within the 530 Fifth Avenue location, it plans to debut ConveneWorkPlace, described as "fully-serviced workspaces for entrepreneurial organizations and enterprise teams from 10 to 100 employees."

A differentiated business model targeting smaller enterprise teams was also unveiled this year by WeWork, which calls it HQ by WeWork. And flexible workspace providers have also been investing into software companies to build out analytics capabilities. This month, WeWork reportedly spent $100 million to acquire Teem, a platform that tracks space management and workplace usage. In July, Knotel bought 42Floors, a search engine for commercial real estate.

Concurrently, Convene announced the opening of its third RXR Realty location at 75 Rockefeller Plaza. There, it operates a 28,232-square-foot meeting and amenity space on the 31st and 32nd floors. The two companies have also teamed to create a membership-based social club on part of the 32nd floor. RXR said it has poured $150 million into renovating the 623,000-square-foot Midtown West tower.

"Convene spaces provide an elevated level of service and hospitality that enriches the experience for RXR’s tenants and energizes our buildings," said RXR Realty Chief Executive Scott Rechler, adding his company will continue to partner with Convene as the two explore new building amenities and services.

Known for its emphasis on landlord relationships, Convene already operates at RXR buildings located at 32 Old Slip in the Financial District and at 237 Park Ave. nearby Grand Central. It also has a strategic partnership with Brookfield Property Partners, which co-led a $68 million Series C funding round, Convene announced in May. Convene said its site at Brookfield’s One Liberty Plaza will open by the end of the year.

By the end of 2018, Convene expects to have 23 locations spanning 700,000 square feet, and it plans to have 1.7 million square feet in 10 cities a year later, Chief Executive Ryan Simonetti and Chief Innovation Officer Chris Kelly said in July. To date, it has raised $260 million in equity funding.

Diana Bell, New York City Market Reporter  CoStar Group   
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