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 02:54 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
Aerial photo of the Pacific Design Center (Credit: felixmizioznikov/iStock)

Here’s what WeWork and other tenants pay at 1.4M sf Pacific Design Center

Here’s what WeWork and other tenants pay at 1.4M sf Pacific Design Center
JLL's Peter Yorck (JLL)

JLL moves top San Francisco broker to help lead LA multifamily operations

JLL moves top San Francisco broker to help lead LA multifamily operations
Adam Neumann and the home (Credit: Jackal Pan/Visual China Group via Getty Images and Zillow)

Adam Neumann listing Bay Area “Guitar House” for $27.5M

Adam Neumann listing Bay Area “Guitar House” for $27.5M
Onni Group President Rossano DeCotiis, WeWork CEO Sandeep Mathrani, and Wilshire Courtyard

Onni Group defaults on $400M Wilshire Courtyard loan after WeWork lease amendment

Onni Group defaults on $400M Wilshire Courtyard loan after WeWork lease amendment
Jeff Bezos and the IAC Commerce Center (Credit: Phillip Faraone/Getty Images and IAC Commerce Center)

Amazon expands LA footprint with big warehouse lease

Amazon expands LA footprint with big warehouse lease
Los Angeles skyline (Credit: iStock)

LA office leasing drops in Q4 amid WeWork, tech sector pullback

LA office leasing drops in Q4 amid WeWork, tech sector pullback
CBRE CEO Robert E. Sulentic, and Keller Williams Founder Gary Williams with the Lantana property

Keller cries foul: Brokerage sues CBRE over WeWork lease deal

Keller cries foul: Brokerage sues CBRE over WeWork lease deal
1200 W. 7th Street and 5750 Wilshire Boulevard (Credit: Google Maps)

Here are LA’s biggest office leases of 2019

Here are LA’s biggest office leases of 2019
arrow_forward_ios

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

Loading...