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Kushner Offers 150K Sqaure Feet of Shorter Term Leases in DUMBO

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Kushner is setting aside up to 150,000 square feet in two buildings for Smart Space – an arrangement that falls between a conventional lease and WeWork’s brand of 30-day licensing agreements for spaces as small as 100 square feet.
“Kushner Companies’ Dumbo Heights has a new kind of tenant in mind.”

“Kushner Companies’ Dumbo Heights has a new kind of tenant in mind,” reports New York Post. According to The Real Deal: New York Real Estate News, Kushner Companies is now looking for tech tenants for its Dumbo Heights project, offering flexible leases set up roughly between traditional 10-year agreements and WeWork’s 30-day deals.

After having purchased the five-building complex from the Watchtower Bible and Tract Society for $375 million in 2013, CEO Jared Kushner and partners LIVWRK and RFR Realty “spent $100 million to convert the empty buildings to 1.1 million square feet of class-A offices and 80,000 square feet of retail,” sources said. The Dumbo Heights complex will contain 963,000 square feet of office space in total.

About half of the office floors are already leased to tenants such as Etsy and well-known shared workspace provider WeWork. “The way real estate is run is not always compatible with what small tenants need,” said Jared Kushner, a 34 year-old American businessman and investor. “This is for tenants that have outgrown WeWork, but are not ready yet for a much larger, long-term commitment,” he told New York Post.

“The idea is to allow small, growing tenants using incubator spaces to gradually transition into a more traditional format, but without committing to a very long terms and having to pay for expensive buildouts.” CEO of LIBWRK Asher Abehsera noted that many such startups are within the Brooklyn tech triangle of which Dumbo Heights is part.

The Real Deal, New York Real Estate News reports that the developer, along with partners RFR Realty and LIVWRK, is setting aside 150,000 square feet in two buildings: at 55 Prospect Street and 77 Sands Street in Dumbo for Smart Space and for tenants interested in signing shorter, simpler leases, for between 12 and 30 months. Kushner is calling the offerings “smart spaces.”

According to New York Post, Smart Space, in return, will offer pre-builts between 800 and 6,000 square feet, starting with 31 units at 55 Prospect Street. Leases for 12- to 30-month terms will run just seven pages.” This arrangement “falls between a conventional lease and WeWork’s brand of 30-day licensing agreements for spaces as small as 100 square feet.” Mr. Kushner emphasized that his leases are straight-forward, unlike ordinary ones, which tend to be wordy and legally complex.

Smart Space tenants will enjoy shared conference rooms and pantries, and will have access to a roof deck. In addition, The Dumbo Heights’ multifaceted website has a feature that allows companies to calculate how much space it needs and at what price, based on their employee count and the floor they want to live on. For example, if you have 30 to 60 employees and want to be on the fourth floor, the site will say that you need 1,784 square feet and 21 desks. Rent will be $8,650 a month including furniture, power and cleaning, shows New York Post.

Raphael Rahamani

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