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The WeWork deal: What was Yardi thinking?
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Here’s what’s happening to WeWork around the US
The firm is cutting deals across its 170 locations, some of them "priority"
The end of bankruptcy is nigh for WeWork, but that doesn’t necessarily mean the end of the co-working company in some of the nation’s top markets.
WeWork is still discussing lease assumptions and rejections with its landlords across the country. David Tolley’s firm has figured out the path forward for most of its locations, though, as 97 percent of the portfolio’s future has been determined, a spokesperson told Bisnow.
In New York, WeWork recently moved to assume 18 leases, while rejecting five. One of the locations WeWork has rejected so far is its Manhattan headquarters, which spanned 300,000 square feet across 20 floors at 12 East 49th Street.
In Miami-Dade, WeWork recently confirmed lease agreements for four of its six local locations, the South Florida Business Journal reported. The fate of locations in Miami Beach and downtown Miami have yet to be determined, but the company hasn’t rejected any leases in the area.
In Southern California, WeWork recently filed requests to assume 10 leases in the market, including multiple locations in Santa Monica and Irvine, as well as sites in Pasadena, Glendale and beyond. WeWork had previously filed motions to keep leases in North Hollywood, Downtown Los Angeles, West Hollywood, Long Beach and South Coast Plaza in Orange County. The firm rejected a lease at the Gas Company Tower in Downtown L.A., which is in receivership.
In the Bay Area, WeWork recently cut deals to keep a pair of locations in San Francisco and Oakland. Prior to that, WeWork had already assumed five leases in the Bay Area. The fate of five other locations in the region remain up in the air.
In Chicago, WeWork is keeping most of its locations, only planning to close a Fulton Market spot that Workbox is set to take over.
In the Dallas-Fort Worth area, the company is hanging on to five of its locations, declaring the Metroplex as “a priority market.” WeWork is keeping two leases in Plano and one in each of Dallas, Fort Worth and Preston Center. WeWork appears to be keeping five of its seven locations in DFW.
WeWork has also rejected leases in Houston and San Jose, though it has also assumed at least one lease in the former. Since 2023, WeWork has left three locations in the Houston market, according to the Houston Chronicle.
Many of the lease terms are still to be determined and need approval from the bankruptcy judge.
WeWork is expected to exit bankruptcy this month after filing for Chapter 11 in November. The company aims to eliminate $4 billion in debt and receive $450 million in fresh financing, most of which is coming from Yardi Systems.
When it re-emerges, the company expects to have a portfolio of 170 U.S. locations and 337 around the globe.
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