WeWork Closing 90K SF Location in LA's Gas Company Tower Amid Failed Landlord Talks

WeWork, the embattled coworking provider, is set to close its 90,000 square feet location at the Gas Company Tower in Downtown Los Angeles. The closure follows unsuccessful negotiations with the landlord and is indicative of WeWork's ongoing struggles amid its bankruptcy proceedings.

Closure Announcement

WeWork confirmed the closure of its Downtown LA location by the end of February. The decision came after the company failed to reach a favorable deal with the landlord despite negotiations.

Landlord Response

The landlord, a court-appointed receiver managing the property since April, did not immediately provide a comment regarding WeWork's closure.

Lease Negotiations and Financial Troubles

While WeWork successfully renegotiated leases in certain locations such as Washington, D.C., Atlanta, and Portland, Oregon, it withheld over $30 million in rent payments in January across other properties where agreements weren't reached. Details about WeWork's payment status at the LA property remain unanswered.

Bankruptcy Proceedings

Having declared bankruptcy in November, WeWork aimed to exit 69 leases, including seven in Southern California, and has since expanded the list of leases it seeks to terminate.

Future of Gas Company Tower

The Gas Company Tower is poised to welcome a significant new tenant, as the city of Los Angeles plans to occupy approximately 300,000 square feet of space. WeWork's departure will free up about 6% of the building's total area.

WeWork's decision to close its Downtown LA location underscores its ongoing challenges amidst bankruptcy proceedings, while the Gas Company Tower prepares for a major tenant transition.