WeWork, the global flexible space provider, said it has completed its lease negotiations as part of its strategic restructuring in the UK and Ireland.
Describing it as a "landmark moment", it said the remaining operations in London, Cambridge, Edinburgh, Birmingham, Manchester and Dublin, "underscores its commitment to delivering an outstanding workspace environment and best-in-class service to its members", following the process which began in September 2023.
According to its website it now has 40 locations in the two countries. It appears to have shed six sites since CoStar News analysed its portfolio in November: 127-131 Finsbury Pavement, 15 Bishopsgate, 19-25 Long Acre and 76-78 Clerkenwell Road, all in London; plus Quay Street in Manchester and 5 Harcourt Road in Dublin.
WeWork has been shedding its massive portfolio of British and Irish offices for several years, but that process accelerated last year as it said it needed to renegotiate leases to shore up its business in a "going concern" warning.
The shared office space provider filed a petition for Chapter 11 bankruptcy protection in the United States, limited to its home country.
In November it emerged its turnaround plan assumed it would exit 163 global locations including 43 outside the United States and Canada in the run-up to the flexible office space provider's bankruptcy filing that month.
At that stage, WeWork had served notice to quit or closed at 10 offices in London in the prior two months since instigating its global negotiations with landlords. These included The Hewett, 30 Curtain Road in Shoreditch, 12 Moorgate and 120 Old Broad Street in the City and 12 Russell Square in Midtown.
Market sources have said that where WeWork wished to stay in occupation it has sought rent cuts of between 15% and 60%.
What is clear is the New York-based coworking company still occupies millions of square feet across London, Manchester, Birmingham, Edinburgh, Cambridge and Dublin.
No single landlord has multiple exposures, with M&G and Nuveen both landlords at two buildings. The largest single landlord exposure is Almacantar's 290,000-square-foot Southbank West in Waterloo.
Today, it said in a statement that its footprint is now made up of the company’s "strongest and most popular locations across all six cities" and added that it is focused on its "go-forward plan, investing in its products and services to provide an exceptional member experience for the long term". It said it continues to see positive return to office trends in the UK and Ireland.
Ben Samuels, chief revenue officer at WeWork, said in a statement. “On behalf of the entire WeWork team, I want to express my gratitude to our members and landlord partners for their steadfast support and loyalty during this period. As we look to the future, WeWork is better positioned to continue defining the future of flexible work, and we’re committed to investing in our spaces and services to deliver the signature experience our members expect well into the future.”
WeWork said it had seen total footfall by occupied desks increase by 25% year over year across the UK and Ireland. All Access bookings also increased by 34% in London, and 51% in Dublin in the same time period, it said.
“Over the past nine months, we’ve been intensely focused on improving our balance sheet and optimising our real estate portfolio to achieve sustainable economic terms. We’re thrilled to have concluded our negotiations in the UK and Ireland, a key market for us," added Peter Greenspan, global head of real estate, WeWork. “This milestone would not have been possible without the support of our landlord partners, to whom we are deeply grateful. Their partnership, along with our enhanced operational efficiency and continued dedication to our members, paves the way for a bright future ahead of us. As demand for flexible workspace continues, WeWork is poised to provide companies of all sizes with the space, offerings and flexibility they need to thrive in this new era.”
Last week, WeWork said it had finalised its extensive portfolio rationalisation process and completed its restructuring in the US and Canada. The company amended over 170 office leases and exited 160 locations, reducing future rent costs by a projected $12 billion, over half of the beginning rent commitments.
WeWork said it now operates a system of approximately 45 million square feet in approximately 600 locations in 37 countries and 120 cities.
WeWork is a tenant in a Virginia building CoStar Group acquired earlier this year, making CoStar a creditor in the case. CoStar also competes with Yardi in providing real estate data.