Durst snubs WeWork, says there are better offers for 1 WTC space

The deal would have made WeWork the biggest office tenant in Manhattan

New York /
Sep.September 05, 2018 01:45 PM

WeWork’s Adam Neumann, One World Trade Center at 285 Fulton Street, and Douglas Durst (Credit: Getty Images and World Trade Center)

WeWork isn’t coming to the World Trade Center after all.

The co-working company’s bid to lease up to 12 floors at One World Trade Center has fallen apart after the Durst Organization received better offers for some of the space WeWork wanted, according to the Wall Street Journal. WeWork had hoped to lease roughly 220,000 square feet at the tower.

Negotiations between WeWork and Durst ran into multiple issues, although both sides had been making progress before the deal fell through. Servcorp, a tenant at One World Trade Center with similar co-working options to WeWork, had a clause in its lease restricting its competitors from occupying the building, but the Durst Organization was discussing a way to get around this.

Security concerns also came up, as WeWork officials were concerned that the strict measures in place at One World Trade Center would make life difficult for WeWork members from different locations who pay to have access to multiple buildings.

WeWork’s lease at One World Trade Center would have made it the largest private occupier of Manhattan office space. It is still likely to achieve this position by the end of the year despite the recent setback.

The company inked multiple leases last month, including 25,000 square feet at 609 Greenwich Street in the West Village, about 70,000 square feet at 880 Third Avenue in the Plaza District, and 258,344 square feet at 21 Penn Plaza in Midtown.

Meanwhile, a recent report from Cushman & Wakefield found that investors apply a discount when pricing office properties with high exposures to co-working occupancies.

A spokesman told the journal that WeWork was not giving up on the World Trade Center yet.

“We have, and continue to, explore opportunities to secure a location there and believe we will be an energizing force for the building,” he said. [WSJ] – Eddie Small


Related Articles

arrow_forward_ios
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
WeWork CEO Adam Neumann (Credit: Getty Images and iStock)
WeWork’s side businesses are fizzling
WeWork’s side businesses are fizzling
Sarah Pontius (Credit: Union College)
Another head rolls at WeWork
Another head rolls at WeWork
270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
Legendary Hampton Bays bar up for sale
Legendary Hampton Bays bar up for sale
Prologis Chairman and CEO Hamid Moghadam (Getty, Prologis)
Industrial space “effectively sold out” amid leasing frenzy, Prologis says
Industrial space “effectively sold out” amid leasing frenzy, Prologis says
Starwood raises $10B for distressed real estate plays
Starwood raises $10B for distressed real estate plays
Starwood raises $10B for distressed real estate plays
Aulder Capital CEO Jonah Bamberger and 162-164 East 82nd Street (Rosewood Realty Group, Slate Property Group)
Two Upper East Side apartment buildings head to foreclosure sale
Two Upper East Side apartment buildings head to foreclosure sale
Stripes founder Ken Fox and a rendering of 40 10th Avenue (Stripes, Neoscape)
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...