A WeWork sign on the Triangle building at 1550 Wewatta St., whose mirror-like facade reflects the sky. (BusinessDen file)
Bankrupt WeWork has reached a deal with all its Colorado landlords, who generally have accepted less base rent in exchange for a cut of profit or revenue.
The New York-based coworking chain said Monday that, as part of the Chapter 11 process, it had completed its “lease portfolio review” in the Denver and Boulder markets.
WeWork, pending final court approval, will continue operating its five existing Denver locations and one Boulder location. That’s the same number of Colorado locations that WeWork had up and running on Nov. 6, the day the company filed for bankruptcy.
Behind the scenes, however, bankruptcy has brought some changes to WeWork’s Colorado presence. Those changes primarily affect its landlords, who largely will be receiving less guaranteed income. But some of WeWork’s tenants have also been affected.
At the Triangle building at 1550 Wewatta St. near Union Station, where WeWork first set up shop in Denver in 2016, the company’s contract with its landlord was amended to reduce the company’s rent and add a revenue share component, as well as increase a tenant allowance, according to a bankruptcy court filing.
The company also downsized its presence in the Triangle building, forcing some individuals and companies to relocate last month. That reduction involved WeWork giving its space on the building’s first and fourth floors.
At the Wells Fargo Center, at 1700 Lincoln St. in Denver, WeWork got its rent reduced and added a profit share. A guaranty clause was also eliminated from the lease.
At Circa at 1615 Platte St. in LoHi, WeWork again got its rent reduced and added a revenue-share component, according to a bankruptcy court filing. A guaranty clause was amended.
In Boulder, where WeWork operates at 2595 Canyon Blvd., WeWork got its rent reduced, added a profit-share component and also had the term of its lease reduced, per a court filing.
WeWork also said in a Monday court filing that it is keeping its lease at the Tabor Center, at 1200 17th St. in the heart of downtown, and at Financial House, at 2727 E. 2nd Ave. But the filing doesn’t indicate whether the terms of those leases are being altered.
WeWork had two other active Denver leases on the day it filed for bankruptcy, in The Hub at 3601 Walnut St. in RiNo and The Lab at 2420 17th St. in LoHi. But the company had closed its locations there months before, and subsequently received court approval to terminate the leases.
WeWork said Monday that it expects to operate about 170 locations in the United States, and 337 locations globally, upon emerging from bankruptcy in the coming weeks. The company said bankruptcy has allowed it to reduce its total rent commitments by $11 billion.
A WeWork sign on the Triangle building at 1550 Wewatta St., whose mirror-like facade reflects the sky. (BusinessDen file)
Bankrupt WeWork has reached a deal with all its Colorado landlords, who generally have accepted less base rent in exchange for a cut of profit or revenue.
The New York-based coworking chain said Monday that, as part of the Chapter 11 process, it had completed its “lease portfolio review” in the Denver and Boulder markets.
WeWork, pending final court approval, will continue operating its five existing Denver locations and one Boulder location. That’s the same number of Colorado locations that WeWork had up and running on Nov. 6, the day the company filed for bankruptcy.
Behind the scenes, however, bankruptcy has brought some changes to WeWork’s Colorado presence. Those changes primarily affect its landlords, who largely will be receiving less guaranteed income. But some of WeWork’s tenants have also been affected.
At the Triangle building at 1550 Wewatta St. near Union Station, where WeWork first set up shop in Denver in 2016, the company’s contract with its landlord was amended to reduce the company’s rent and add a revenue share component, as well as increase a tenant allowance, according to a bankruptcy court filing.
The company also downsized its presence in the Triangle building, forcing some individuals and companies to relocate last month. That reduction involved WeWork giving its space on the building’s first and fourth floors.
At the Wells Fargo Center, at 1700 Lincoln St. in Denver, WeWork got its rent reduced and added a profit share. A guaranty clause was also eliminated from the lease.
At Circa at 1615 Platte St. in LoHi, WeWork again got its rent reduced and added a revenue-share component, according to a bankruptcy court filing. A guaranty clause was amended.
In Boulder, where WeWork operates at 2595 Canyon Blvd., WeWork got its rent reduced, added a profit-share component and also had the term of its lease reduced, per a court filing.
WeWork also said in a Monday court filing that it is keeping its lease at the Tabor Center, at 1200 17th St. in the heart of downtown, and at Financial House, at 2727 E. 2nd Ave. But the filing doesn’t indicate whether the terms of those leases are being altered.
WeWork had two other active Denver leases on the day it filed for bankruptcy, in The Hub at 3601 Walnut St. in RiNo and The Lab at 2420 17th St. in LoHi. But the company had closed its locations there months before, and subsequently received court approval to terminate the leases.
WeWork said Monday that it expects to operate about 170 locations in the United States, and 337 locations globally, upon emerging from bankruptcy in the coming weeks. The company said bankruptcy has allowed it to reduce its total rent commitments by $11 billion.
