search

The Real Deal Logo

Trending

Steph Curry pays $9M for commercial building in SF’s DogpatchSteph Curry pays $9M for commercial building in SF’s DogpatchStarwood REIT quickly burning liquidity Starwood REIT quickly burning liquidity Todd Glaser, partners sell Palm Beach’s priciest private island estate for $152M Todd Glaser, partners sell Palm Beach’s priciest private island estate for $152M After pandemic’s biggest office default, Columbia Property Trust scores lifelineAfter pandemic’s biggest office default, Columbia Property Trust scores lifeline
Commercial
Dallas

DFW landlords withdraw WeWork rent demands

Firm owes about $500K in rent between Uptown and Irving locations

DFW Landlords Withdraw Rent Demands From WeWork
WeWork’s David Tolley and 1920 McKinney Ave. in Uptown Dallas (Loopnet, WeWork)

WeWork, the financially troubled coworking giant, has found some respite in its legal battles with North Texas landlords. 

After facing demands for unpaid rent totaling hundreds of thousands of dollars, owners of two office properties — in Uptown Dallas and Irving — have withdrawn their motions, signaling potential progress in resolving the disputes, the Dallas Morning News reported. 

For the Uptown location, at 1920 McKinney Avenue, a lawyer representing the landlord, Invesco Advisers, withdrew its rent demand on Feb. 15, citing a “stipulation” reached with WeWork. The coworking firm failed to make its January rent payment of more than $336,000 and was nearing its February due date for over $364,000.

Owners of Irving’s Williams Square — a venture of Apollo Global, Vanderbilt Office Properties and Hillwood Urban — also reached a stipulation with the company. The owners previously filed a motion in January, seeking over $148,000 in unpaid rent, the outlet reported. 

WeWork filed for bankruptcy in November and has been working to renegotiate “nearly all” of its leases throughout the country. Peter Varellas, the firm’s vice president of global real estate, recently called Dallas-Fort Worth a “priority market,” citing the strong demand for coworking space in the area.

Sign Up for the undefined Newsletter

We Work leased two floors in the Class A building at 1920 McKinney in 2017, marking its entry into the DFW market. The company later added a third floor to its lease, upping its total occupancy to nearly 67,000 square feet.

While WeWork navigates its bankruptcy proceedings, its focus remains on preserving jobs and shareholder value. The company recently objected to motions seeking rental payments, accusing some landlords of hindering its reorganization efforts.

WeWork’s North Texas operation remains mostly intact, although Common Desk, a subsidiary of the firm, has closed four locations in the region.

—Quinn Donoghue

Read more

Companies and People
Apollo GlobalHillwood UrbanInvesco AdvisersVanderbilt Office PropertiesWeWork