WeWork in talks to exit City and West End offices

Co-working company WeWork is set to exit more of its London locations, closing its operation at Royal London Asset Management’s 131 Finsbury Pavement, EC2, and moving tenants from 22 Long Acre, WC2, while it negotiates with its landlord. Market sources tell EG that WeWork members at both sites have already been served notice and told they will need to leave by the end of March. WeWork took the entirety of the 90,000 sq ft 131 Finsbury Pavement on a 15-year lease back in 2017. At the time RLAM described the deal as “our first participation in the rapidly evolving co-working space”. WeWork has occupied 22 Long Acre since 2021, according to the company’s social media. A spokesperson for WeWork said: “As part of WeWork’s efforts to achieve a sustainable capital structure and profitable business to serve our members for the long term, we have made the decision to stop operations at 131 Finsbury Pavement. “We have offered affected members the option to relocate, with our support, to our other locations in London, and deeply apologise for any inconvenience this may cause. We look forward to continuing to provide our members with flexible space solutions across our other locations in the capital.” WeWork has been in negotiations with landlords around the world over lease renegotiations as the US group works through the bankruptcy process. In London, sites marked for closure include Deka’s Cursitor Building at 38 Chancery Lane, WC2. Other sites recently removed from the company’s website include 15 Bishopsgate, EC2, in the Square Mile. Other co-working companies have been eager to paint problems with WeWork’s portfolio as company-specific rather than illustrative of wider woes in the sector. Runway East chief operating officer Jacob Fisher said: “Closing buildings with little notice to members is not something any operator wants to do, and it’s sad to see WeWork doing this. “It’s important to remember this is a problem that is very specific to WeWork and the decisions they made in attempting to expand so aggressively. The flex sector as a whole is robust and demand for flexible office space is only increasing in a post-Covid world.” Check out lettings information for the City of London >> Check out lettings information for London’s West End >> Photo © WeWork