WeWork taps JLL, Newmark to help negotiate rent relief

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

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
Flight to quality in office real estate leaves trophy buildings the only winners
Flight to quality in office real estate leaves trophy buildings the only winners
Flight to quality in office real estate leaves trophy buildings the only winners
WeWork awarded $10M federal contract to provide office space to gov’t workers
WeWork awarded $10M federal contract to provide office space to gov’t workers
WeWork awarded $10M federal contract to provide office space to gov’t workers
Vice Media CEO Nancy Dubuc, Rudin Management's Bill Rudin and Dock 72 (Getty)
Vice plans move to Rudin’s Dock 72
Vice plans move to Rudin’s Dock 72
511 Barry Street and CenterPoint Properties CEO Bob Chapman (CBRE, GI Partners)
CenterPoint buys second warehouse in Hunts Point
CenterPoint buys second warehouse in Hunts Point
JLL CEO Christian Ulbrich and JLL Income Property Trust CEO C. Allan Swaringen (JLL, iStock)
JLL arm buys $560M stake in single-family rental portfolio
JLL arm buys $560M stake in single-family rental portfolio
arrow_forward_ios

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

Loading...