WeWork is looking to hold onto another location in Seattle, negotiating new terms with its landlord and filing a court motion Monday to remain in the 15th and Market building in the Ballard neighborhood.
The “lease assumption,” as it’s known in commercial real estate, comes in the final stages of a strategic restructuring after the one-time co-working giant filed for Chapter 11 bankruptcy last fall. The company, once valued at $47 billion, says it has been making progress in a variety of negotiations related to its real estate portfolio.
WeWork says it has saved over $8 billion in total future rent commitments (a more than 40% reduction) and has reached a path forward at 90% of its buildings globally. The company has assumed 40 leases across its portfolio so far, and more are expected to be announced in the coming weeks.
A WeWork location at 1600 Seventh Ave. in Seattle was among eight lease assumptions announced in March.
The Ballard WeWork at 1448 NW Market St. opened in 2019 as a 76,500-square-foot space spread over two floors. It shut down during the COVID-19 pandemic in June 2021, and then reopened in March 2022.
WeWork still operates seven co-working locations in the Seattle area. Portland-based co-working company Centrl Office is taking over the former WeWork space in Kelly-Springfield Building on Capitol Hill this summer.
Peter Greenspan, global head of real estate at WeWork, called the Ballard location one of his company’s most popular locations in the Seattle area.
“It has recently seen an increase in demand from hybrid workers who are looking for workplaces closer to their homes,” Greenspan said. “We are grateful for Martin Selig Real Estate’s collaboration on this new agreement, and we are excited to continue providing our Seattle members with best-in-class workspaces and solutions at this location.”
Lease assumptions are subject to court approval.
