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Lord & Taylor's NYC flagship to become WeWork HQ

The Lord and Taylor department store on Fifth Avenue, New York City, in 1951. Photo: AP

The iconic Lord & Taylor flagship building on Fifth Avenue in Manhattan will soon be WeWork's new headquarters, per the WSJ. The seven-year-old startup is buying the building, which was officially named a city landmark in 2007, for $850 million in a deal that Lord & Taylor's parent company, Hudson's Bay, hopes will help reduce its debt.

Why it matters: The deal is the latest example of the heightened pressures that have slammed the retail industry in recent years. And while retail giants once did well in grandiose shopping spaces, that real estate has now proven to garner more value in serving the needs of millennial workers.