WeWork is closing another of its locations in the Los Angeles market.
The coworking firm will shut its space at Worthe Real Estate Group’s The Tower in Burbank, according to a source familiar with the matter. WeWork declined to comment.
WeWork signed a 75,000-square-foot lease at the 31-story building at 3900 West Alameda Avenue in 2017. At the time, the deal marked WeWork’s 12th location across L.A. County.
WeWork is “current” on its obligations, Jeff Worthe said, but declined to comment further.
Grappling with more than $2 billion in short-term debt, WeWork is trying to cut costs. In the second quarter, The New York-based company reported a loss of $635 million — better than the losses it reported when the company went public through a SPAC offering last year.
Office space at The Tower is currently available for lease with an asking price of $4.85 per square foot a month, according to online listings for the property.
If WeWork was paying close to that, it would be saving more than $4.3 million a year in lease costs.
In L.A., the company plans to shutter its Hollywood location at 1601 Vine Street, TRD reported earlier this month. Both offered desks for $29 per day and longer-term options.
Last year, WeWork also gave up one of its three West Hollywood locations at 925 North La Brea Boulevard, where it leased about 48,000 square feet through 2029.
WeWork will now only have one location in the San Fernando Valley, at 5161 Lankershim Boulevard in North Hollywood.
Together, the WeWork closures make up about 171,000 square feet — space that will eventually make its way back to a market that is already encumbered by large swaths of empty space. More than a quarter of all office space across L.A. was available in the third quarter, according to brokerage Newmark.
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