WeWork's $7M Debt to Boston Landlords Amidst Bankruptcy Filing

WeWork's Chapter 11 bankruptcy filing brings to light the consequences it may have on Boston's office market. The filing unveiled a list of the company's 30 largest unsecured creditors, and among them, three Boston property owners were owed a total of over $7 million. Notably, two Boston locations were included in WeWork's list of proposed lease rejections.

Boston's Top Creditors Revealed

Leading the list of Boston-based creditors is Beacon Capital Partners, who is owed a significant $3.5 million in unpaid rent and lease termination fees. Following closely is John Hancock Life Insurance Co., owed $2.3 million in unpaid rent, and Unitarian Universalist Association, owed $1.6 million in lease termination fees. While one of the properties WeWork owes rent on is 24 Farnsworth St., owned by UUA, the rest remain undisclosed. WeWork occupies John Hancock's 200 Berkeley St. building.

Lease Rejections Impact Boston Spaces

WeWork has submitted a list of 65 leases for potential rejection in bankruptcy court, including two Boston locations with a combined space of 118,000 square feet. The affected properties are 40 Water St., owned by a partnership of Hana Financial and KTB Asset Management, and 100 Summer St., owned by Rockpoint. Beacon Capital, John Hancock, and Rockpoint declined to comment, while UUA and Hana Financial remained unresponsive.

WeWork's Pledge to Boston Market

In a press release regarding the bankruptcy filing, WeWork affirmed its commitment to Boston, stating it continues to operate its coworking spaces while undergoing restructuring to secure a prosperous future. WeWork's CEO, David Tolley, emphasized their dedication to addressing legacy leases and improving their financial standing. The company's spokesperson expressed unwavering commitment to Boston as a key market, focusing on collaborative solutions with landlord partners for long-term success.

WeWork's Boston Presence

WeWork maintains 11 locations in Greater Boston, although the 40 Water St. and 100 Summer St. spaces are no longer listed on their website. The remaining Boston locations encompass a range of properties, from older to newer buildings. Among these is Fortis Property Group's One Lincoln Street and 200 Portland St., which is 55% leased by WeWork. Despite its challenges, WeWork continues to expand its presence in Boston and Cambridge, with over 900,000 square feet of leased space. Notably, earlier this year, WeWork discreetly vacated 120,000 square feet at Capital Properties and Madison International Realty's 31 St. James Ave.