Flexible Workspace Operator IWG Commits to 22,000 SF at 475 Park Avenue South

Flexible Workspace Operator IWG Commits to 22,000 SF at 475 Park Avenue South

Cohen Brothers Realty has lined up a fresh round of tenants at its Midtown South tower at 475 Park Avenue South, headlined by a 22,000-square-foot lease with International Workplace Group, the parent of flexible workspace brand Regus, according to an announcement from the landlord.

IWG will occupy the entire 26th and 27th floors of the building. Cohen Brothers has not yet disclosed the term of the lease. Asking rents at the property currently run between $75 and $85 per square foot.

Marc Horowitz, the firm’s national director of leasing, said the recent leasing wave reflects the tower’s appeal following an extensive repositioning, and framed IWG’s flexible workspace offering as an amenity increasingly sought by today’s office tenants.

Horowitz and CBRE‘s Adam Foster represented the landlord in the IWG transaction. T.J. Hochanadel and Will Propst of JLL acted for the tenant. CBRE and JLL did not immediately respond to requests for comment.

The building’s largest existing tenant also deepened its commitment. Millenium Alliance, a tech and business advisory firm, expanded from 10,010 square feet to 20,020 square feet, roughly doubling its footprint through a series of moves that included two expansions — the most recent totaling approximately 5,000 square feet — along with an extension on its existing space. Horowitz negotiated for the landlord, with CBRE’s Taylor Scheinman representing the tenant.

Additionally, property survey firm CRC North signed a 4,000-square-foot lease for a New York City office in the building, with representation from Michael Hymowitz of LSL Advisors alongside Glenn Isaacson and Tony Builder.

The transactions come as serviced-office operators continue to take down blocks of space in Manhattan, positioning themselves as intermediaries between landlords and tenants seeking shorter-term commitments. Both brokerage firms involved in the deal operate in a real estate services sector that has seen shares under pressure in recent trading — CBRE was down 3.61% at $142.85 in its most recent session, while JLL slipped 1.88% to $355.54.

What to watch

• Disclosure of the IWG lease term and effective rent, which Cohen Brothers has not yet provided.
• Further leasing announcements at 475 Park Avenue South following its renovation.
• Upcoming earnings reports from CBRE and JLL, which may offer broader reads on Manhattan office leasing demand.

Source: original release