WeWork Files to Assume 11 More SoCal Leases
By Anna Staropoli May 21, 2024 12:57 pm
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Despite filing for bankruptcy in November, WeWork continues to put in work, now clinging to 11 more South California locations.
On Friday, the coworking giant filed a New Jersey court request to assume 11 of its California offices, in addition to roughly 80 more leases across the United States and Canada. The request is the most recent in a string of attempts to circumvent bankruptcy losses and retain leases nationwide.
The filing coincides with WeWork’s plans to exit bankruptcy by the end May — a plan aided by $450 million in funding and a restructuring deal to drop roughly $4 billion in debt. As part of its restructuring strategy, WeWork predicts it will reduce more than $11 billion in total rent commitments. The court approved WeWork’s restructuring plan and slated bankruptcy exit last month.
“With our lease rationalization across the United States and Canada nearly complete, WeWork is positioned for a strong and bright future,” Peter Greenspan, WeWork’s global head of real estate, said in a statement. “Strengthening our real estate portfolio could not have been possible without the collaboration of our landlord partners, to whom we are immensely grateful.”
The latest Southern California locations getting WeWork’s attention span the region and include two Irvine Company properties at 200 Spectrum Center and 400 Spectrum Center in Irvine, as well as two TPG Angelo Gordon leases at 21255 Burbank Boulevard in Warner Center and 4041 MacArthur Boulevard in Newport Beach. The additional WeWork locations are in Playa Vista, Pasadena, Glendale, El Segundo, San Diego and Santa Monica, which has two leases.
Many of the leases will remain the same, though the specifics vary from property to property. Some leases are still to be determined, while, for others, contract amendments include reduced rent, added revenue share, reduced terms and other concessions, per the court document.
The latest court request continues WeWork’s trajectory of the last few months. In April, WeWork filed to keep two Southern California properties: Long Beach’s The Hubb at 100 West Broadway and two floors in Orange County’s Park Tower at 695 Town Center Drive. Just a few weeks later, WeWork again filed to assume 16 leases at sites that included the Cohen Brothers’ Pacific Design Center and LBA Realty’s 1150 South Olive Street in Los Angeles.
That’s not to say WeWork is only focused on lease retention. Last week, the coworking company assumed new properties in Oakland, San Francisco, New York, Cambridge, Austin and Denver.
With the latest anticipated lease assumptions, WeWork has plans for roughly 97 percent of its lease portfolio. When bankruptcy ends, WeWork expects to operate in more than 170 locations in the United States and Canada and 337 locations worldwide, according to a statement.
Anna Staropoli can be reached at astaropoli@commercialobserver.com.
