WeWork to shrink downtown Durham coworking space as it navigates bankruptcy
WeWork will remain in downtown Durham — but with a smaller presence — after the bankrupt coworking operator renegotiated one of its two Triangle-area leases.
On March 30, WeWork filed a motion in U.S. bankruptcy court to keep its office at Durham’s One City Center under a reduced size and rental rate.
The company declined to share how much space it will now occupy in the building, which hovers near the bronze bull sculpture, “Major,” in the city’s central plaza. WeWork also would not divulge the new terms of its lease.
“We’re pleased to continue operating at this building and see a long future in Durham,” Peter Greenspan, WeWork’s global head of real estate, said in a statement Monday.
Bankruptcy provided flexibility
A pioneer of modern, trendier communal work spaces, WeWork filed for Chapter 11 in November as it struggled to maintain a bloated office portfolio.
Bankruptcy gave the company more flexibility to exit or readjust its commitments across North America, which included two floors at One City Center and three floors at a tower near Raleigh’s Warehouse District. WeWork says it has so far assumed, or kept, 25 of its existing leases and saved more than $1.5 billion in rent.
The company opened its Durham office in 2018 and its Raleigh site the following year. Like other local coworking spaces, WeWork attracted a collection of businesses, startups and freelancers with open-floor layouts, community events and coffee.
The real estate firm Armada Hoffler, WeWork’s landlord at One City Center, said it was pleased to keep the company as a tenant.
“Our partnership with WeWork underscores our dedication to providing a dynamic environment where businesses thrive,” Armada Hoffler president and chief operating officer Shawn Tibbetts said in a statement.
According to the bankruptcy motion, WeWork owes Armada Hoffler $161,000 to be paid “at a later date.”
The Durham location has 58,000 square feet; the Raleigh site covers 73,000. The company also has two locations in Charlotte. WeWork did not provide an update on its Raleigh lease, though the company said it expects to share additional real estate news within the next few weeks.
