They’re spending a fortune on making it unique.” WeWork’s long-term lease in the former Lord & Taylor building, for which they are paying well above the market rate, is costing $73.5 million annually. Originally planned as its HQ, the floor area is nearly twice as much as any of WeWork's other city-based locations at nearly 700,000 square feet. The company has been looking to expand into new markets and recently announced plans to open a second office in New York City later this year. There is a conflict of interest with the building owned by WeWork Property Investors (ARK) who bought the building for $850 million and then leased the space to WeWork, the operating company. JPMorgan and Starwood Property Trust gave ARK a $600 million mortgage for the Lord & Taylor building purchase.
WeWork’s long-term lease in the former Lord & Taylor building, for which they are paying well above the market rate, is costing $73.5 million annually. Originally planned as its HQ, the floor area is nearly twice as much as any of WeWork's other city-based locations at nearly 700,000 square feet. The company has been looking to expand into new markets and recently announced plans to open a second office in New York City later this year. There is a conflict of interest with the building owned by WeWork Property Investors (ARK) who bought the building for $850 million and then leased the space to WeWork, the operating company. JPMorgan and Starwood Property Trust gave ARK a $600 million mortgage for the Lord & Taylor building purchase.