Hines' flexible workplace business is expected to open its sixth global outpost — and first in New York — this summer at a former WeWork location.
The Square will take over a 63,000-square-foot space — rejected by space provider WeWork as part of the company's bankruptcy proceedings — at 205 Hudson St. in the city's Hudson Square neighborhood, Hines said in a statement on Monday.
Hines owns the 12-story office through its Hudson Square Properties portfolio, a joint venture that includes Trinity Church Wall Street and Norges Bank Investment Management.
“There is a universal shift towards greater flexibility, across small businesses to large enterprises, and we are leading the way in redefining new products that cater to our clients' needs beyond traditional long-term leases,” Annie Draper, director of workplace services at Hines, said in the statement. “As the office model continues to transform in today’s dynamic world of work, and with each company operating in different ways, the demand for a diverse array of workspace options becomes increasingly essential.”
The Square has other locations in Washington, D.C.; Houston; Salt Lake City; and Mexico City, Hines said.
The Manhattan location will feature private offices and suites that can accommodate over 700 people, as well as on-demand meeting rooms and office space, Hines said.
“We expect there to be strong demand for this creative office solution in a thriving mixed-use neighborhood where companies and their employees want to be,” said Alexis Michael, managing director at Hines.
Flexible Shift
Amid "an unprecedented shift to hybrid work and an uncertain economic outlook," tenants are increasingly seeking flexible lease terms, a 2023 CBRE study found.
The Square began as an experiment by Hines Global Ventures before becoming a full-service "experiential coworking provider," according to its website. Hines aims to expand the concept to its other office properties around the world, with 685 properties and 203 developments underway across 30 countries.
Hudson Square is a former manufacturing district near Tribeca and SoHo that’s been transformed into a vibrant mixed-use hub where corporate giants, including Google and Disney, plan to set up major campuses.
The Hudson Square Properties portfolio includes 13 offices across about 6 million square feet of commercial space in the area, including 555 Greenwich St., a speculative office building that recently opened and is combined with the existing 345 Hudson St. to become an office campus spanning more than 1 million square feet across a full city block.
WeWork recently came out of bankruptcy after it filed for Chapter 11 protection from creditors in early November. The New York company said it has renegotiated or terminated leases, such as the one at 205 Hudson St. WeWork is a tenant in a Virginia building CoStar Group acquired earlier this year,
WeWork rival Industrious recently took over WeWork’s former headquarters spanning 240,000 square feet at Tower 49 at 12 E. 49th St. in a 10-year management agreement model with landlord Kato.