WeWork To Reject 31K SF Lease At Leather District Office Building
As WeWork continues to reassess its real estate and reemerge from bankruptcy, it has rejected a fourth lease in Boston.
The coworking company plans to reject a 31K SF lease at 711 Atlantic Ave. near South Station, according to a filing in New Jersey Bankruptcy Court on Tuesday. The lease rejection is set to take place on May 31.
"Our intention is to stay in as many buildings as possible under economic terms that position all parties for a sustainable future," a WeWork spokesperson wrote in a statement to Bisnow. "Unfortunately, we have been unable to reach an agreement with our landlord at 711 Atlantic Avenue, and it is therefore prudent that we plan for other outcomes, which may include an exit."
"Should we decide to end operations, members will hear from us directly and we will make every effort to support them through the transition to a new location,” the spokesperson added.
Landlord Plymouth Rock Assurance could not be reached for comment.
In 2020, WeWork sued the landlord over wrongful termination of the lease after a missed payment, the Boston Business Journal reported. The coworking operator signed a 15-year lease in 2018 to occupy the fifth and sixth floors of the building.
The company rejected two other Boston leases in November, totaling 118K SF. The rejections were at Hana Financial and KTB Asset Management's 40 Water St. and Rockpoint's 100 Summer St. The firm also rejected its 125k SF lease at 200 Berkeley St., which closed in February.
In February, the company negotiated a deal with landlords MetLife and Norges Bank Investment Management at their One Beacon St. location to reduce its 60K SF lease and its rent payment. WeWork also agreed to pay a cure amount of over $470K.
WeWork also owed more than $7M in unpaid rent to three Boston property owners: Beacon Capital Partners, John Hancock Life Insurance Co. and Unitarian Universalist Association.
Nearing the end of its restructuring, WeWork projects it will have 337 locations, including 178 offices across 38 cities in the U.S. and Canada, when it comes out of bankruptcy. This is down from the 850 locations at its peak.
The coworking company has six locations in Boston and one in Cambridge that are still open.
UPDATE, APRIL 25, 2:20 P.M. ET: This story has been updated with comments from a WeWork spokesperson.
