Corporate Suites, a coworking operator based in New York, has signed a 15-year lease on 24,000 square feet at 123 S. Broad St. in Center City, making its first foray into Philadelphia.
The firm will occupy the 15th floor of the office building and expects to be in operation by September.
Though co-working struggled during the pandemic with some operators such as WeWork closing locations and others, such as Regus, filing Chapter 11 bankruptcy protection on some spaces it leased, there is a belief coworking will regain some of its popularity as people seek alternatives to working from home as the pandemic dissipates.
SSH Real Estate, which owns 123 S. Broad, felt the building was lacking in not having a coworking tenant and had sought Corporate Suites as a tenant.
“The deal was in the works early last year but was delayed because of the coronavirus,” said Pete Soens, a partner at SSH Real Estate.
When talks picked back up, it became apparent to Soens that certain types of coworking will be in high demand as people get back to in-person work.
“We like their business model,” Soens said. “It’s a different model than WeWork. It’s more for professionals, small companies and individuals. We think with the location of 123 across from the Union League and near City Hall, we think the business professional will be drawn to it.”
The shape of the floor that Corporate Suites will occupy will enable it to provide more private offices, small suites, and some coworking areas versus a completely open office plan, Soens said.
The Corporate Suites model includes short-term leases on fully furnished suites and provides conference rooms and office services. SSH is anticipating the firm could eventually expand into another floor and doubling in size.
SSH plans to leverage Corporate Suites services as an amenity for some of the smaller tenants it has in the building and even look to capture some of those who use the space and may later need formal office space.
With this lease, 123 S. Broad reaches 70% occupancy as it chips away at about 150,000 square feet of space vacated by Wells Fargo.
*Article courtesy of Philadelphia Business Journal
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