WeWork taps JLL, Newmark to help negotiate rent relief

Coworking firm is not paying April rent at some of its U.S. locations

TRD NATIONAL /
Apr.April 08, 2020 05:50 PM
Barry Gosin, Sandeep Mathrani and Christian Ulbrich

Barry Gosin, Sandeep Mathrani and Christian Ulbrich

WeWork has hired JLL and Newmark Knight Frank to help it negotiate rent relief or convert lease deals into profit-sharing agreements.

The co-working firm has stopped paying rent at some of its locations in the U.S. for April as it aims to renegotiate its leases, according to the Wall Street Journal. Multiple other businesses in the country, including Equinox, have also not been paying their April rent.

WeWork had been aiming to lower rent costs and shift its leases to management agreements well before the coronavirus pandemic. Its massive real estate expenses threatened to exhaust its cash following its botched initial public offering attempt last fall, but it was bailed out by its principal investor, SoftBank.

The office-sharing company has controversially kept its U.S. locations open during the pandemic, but most have emptied out as tenants practice social distancing and adhere to government stay-home orders. WeWork is also suing SoftBank over allegations that it wrongfully backed out of an agreement to buy $3 billion of WeWork shares.

Some of the firm’s landlords said WeWork has paid them, while others still have not received the rent.

A spokesperson for WeWork told the Journal in a statement that the firm does not have a companywide policy on rent payments. Instead it is “individually reaching out to our more than 600 global landlord partners to work in good faith towards finding asset-specific solutions that benefit all parties involved.” [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
Miguel McKelvey (Getty)

Miguel McKelvey out at WeWork

Miguel McKelvey out at WeWork
WeWork CEO Sandeep Mathrani (Wikipedia, iStock)

What would a WeWork bankruptcy look like?

What would a WeWork bankruptcy look like?
From left: Moishe Mana, Marcelo Claure, Robert Reffkin, and Audrey Gelman (Credit: Jemal Countess, Aaron Davidson, Jean Baptiste Lacroix, Joshua Lott and Sean Rayford, via Getty Images)

“We must do better”: Real estate leaders move to address discrimination in industry

“We must do better”: Real estate leaders move to address discrimination in industry
(Tomohiro Ohsumi/Getty Images)

WeWork, SoftBank hit with class action over failed IPO

WeWork, SoftBank hit with class action over failed IPO
WeWork CEO Sandeep Mathrani detailed the steps WeWork is taking to review its global portfolio (Getty)

WeWork rethinking one in five leases

WeWork rethinking one in five leases
arrow_forward_ios

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

Loading...