New York, NY – February 20, 2024 – WeWork, a leading global flexible space provider, announced today three new lease assumptions in the U.S. as part of its strategic restructuring process and ongoing negotiations with its landlords. The assumptions, which are subject to court approval, demonstrate WeWork’s momentum in its financial reorganization and include the first alternative lease structure the company has reached during this process.
Today’s assumptions mark another step forward in WeWork’s real estate negotiations and underscore the company’s efforts to build a more asset-light portfolio that creates sustainable economic value for its business and landlord partners. In addition to traditional leases, WeWork is working towards revenue sharing and management agreements with dozens of landlords. These agreements enable WeWork’s landlords to share in the success of flexible workspaces within their buildings while minimizing the company’s exposure to fixed, long-term leases. By aligning its interests more closely with those of its landlord partners, WeWork is better positioned to deliver value to its members now and in the future.
This announcement also represents significant progress towards WeWork’s goal of improving its portfolio in the Atlanta and Washington D.C. markets. The company’s agreement in Portland signals the conclusion of negotiation efforts in this market and its 830 NE Holladay St. location is one where WeWork expects to operate for the foreseeable future.
Throughout WeWork’s strategic restructuring, the company has reached agreements at over 60 locations to amend leases in its global portfolio which will amount to over $1.5 billion in total rent savings. WeWork continues to progress on its path to strengthen its global real estate portfolio to deliver sustainable value to its landlords, members and stakeholders. With each agreement, WeWork enhances its ability to invest in its products, services and member experience for the long term.
STATEMENTS REGARDING LEASE ASSUMPTIONS
Midtown Center
“WeWork’s innovative workspaces at Midtown Center and The Wilson enable companies large and small to access Trophy, quality amenity-rich buildings in the DC region. We are pleased to continue our partnership with WeWork at these assets and know that a bright future lies ahead for these properties,” said Carr Properties.
“While flexible work has dramatically transformed D.C. in recent years, desire for workspace in the center of the action is strong,” said Kate Harper, Vice President of Global Real Estate at WeWork. “This new agreement cements our long-term partnership with Carr Properties and our commitment to the Capital, positioning WeWork to deliver solutions that power D.C.’s entrepreneurial and business community for the future.”
About WeWork
WeWork was founded in 2010 with the vision to create environments where people and companies come together and do their best work. Since then, we’ve become a leading global flexible space provider committed to delivering technology-driven turnkey solutions, flexible spaces, and community experiences. For more information about WeWork, please visit us at wework.com.
