WeWork, the financially troubled coworking giant, has found some respite in its legal battles with North Texas landlords.
After facing demands for unpaid rent totaling hundreds of thousands of dollars, owners of two office properties — in Uptown Dallas and Irving — have withdrawn their motions, signaling potential progress in resolving the disputes, the Dallas Morning News reported.
For the Uptown location, at 1920 McKinney Avenue, a lawyer representing the landlord, Invesco Advisers, withdrew its rent demand on Feb. 15, citing a “stipulation” reached with WeWork. The coworking firm failed to make its January rent payment of more than $336,000 and was nearing its February due date for over $364,000.
Owners of Irving’s Williams Square — a venture of Apollo Global, Vanderbilt Office Properties and Hillwood Urban — also reached a stipulation with the company. The owners previously filed a motion in January, seeking over $148,000 in unpaid rent, the outlet reported.
WeWork filed for bankruptcy in November and has been working to renegotiate “nearly all” of its leases throughout the country. Peter Varellas, the firm’s vice president of global real estate, recently called Dallas-Fort Worth a “priority market,” citing the strong demand for coworking space in the area.
We Work leased two floors in the Class A building at 1920 McKinney in 2017, marking its entry into the DFW market. The company later added a third floor to its lease, upping its total occupancy to nearly 67,000 square feet.
While WeWork navigates its bankruptcy proceedings, its focus remains on preserving jobs and shareholder value. The company recently objected to motions seeking rental payments, accusing some landlords of hindering its reorganization efforts.
WeWork’s North Texas operation remains mostly intact, although Common Desk, a subsidiary of the firm, has closed four locations in the region.
—Quinn Donoghue
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