SINGAPORE (Reuters) – Singaporean office landlord CapitaLand Commercial Trust (CCT) (CACT.SI) said on Wednesday it entered into an agreement under which co-working space firm WeWork will lease an entire 21-storey building in the city-state’s financial district.
The lease with WeWork will start in the second quarter of 2020 for seven years, CCT said in a stock exchange filing, adding that the building will become WeWork’s largest workspace in Singapore.
The office tower, 21 Collyer Quay, is currently leased to The Hongkong and Shanghai Banking Corp Ltd (HSBA.L) under a lease that will expire in April 2020, according to CCT. The building has a net lettable area of about 200,000 square feet.
The deal is another example of how flexible workspace operators have become a major source of demand for office space in major cities and technology hubs globally. WeWork currently has 11 centres in Singapore, according to its website.
In New York, WeWork, founded in 2010, has become the largest tenant of Manhattan office space as it leases space from landlords to clients ranging from startups to Fortune 500 companies on a short-term basis.
Reporting by Aradhana Aravindan; editing by Richard Pullin