WeWork, the nation’s second-largest provider of coworking spaces, has filed a motion in bankruptcy court to assume or keep its leases at the Triangle Building near Union Station in Denver and at Canyon 28 in Boulder.
The two locations are among 16 the company indicated on Monday that it wants to retain as it restructures its finances and emerges from bankruptcy. A judge must approve the request, and terms must be reached with landlords.
“These assumptions, which are subject to court approval, showcase WeWork’s progress in creating a more sustainable real estate portfolio to better invest in its offerings for the future,” the company said in a press release.
The Triangle Building is at 1550 Wewatta St. near Union Station in Denver. Canyon 28 is at 2755 Canyon Blvd. in Boulder. Both are dedicated coworking locations.
WeWork didn’t provide details on the fate of the remaining four locations, all in Denver, but the company did say its goal is to find a way to keep over 95% of its global, wholly-owned lease portfolio.
WeWork offers standard private offices hosting one to 20 people, office suites for 20 to 100 people and full floor offices with 100 or more people.
WeWork’s majority owner, SoftBank, pushed a valuation of $47 billion in early 2019 ahead of an initial public offering. But the company never achieved that lofty level and things quickly unraveled after years of poor management and a rapid expansion caught up with the New York-based company.
The pandemic, which kept workers at home and reduced demand for shared office space, caused the bottom to fall out. By November 2023, the overleveraged company filed for Chapter 11 bankruptcy.
Last week the bankruptcy court approved an exit plan that shed $4 billion in debt and rejected a last-minute bid for control from the company’s founder Adam Neumann.
Even as it pushes to complete its restructuring, the competition isn’t standing still. Metro Denver saw an 8% jump in the number of co-working locations, bringing the total to 219 spaces in the first quarter, according to a report from CoWorking Cafe.
Denver moved ahead of Atlanta and Houston to claim the sixth most locations. Los Angeles, Manhattan and Dallas are the top three markets and Denver in comes after Chicago.
In terms of square footage, Denver ranks as the ninth largest market with 3.66 million square feet, according to CoWorking Cafe. Manhattan has the most coworking space, followed by Los Angeles, Washington, D.C., and Chicago.
The average square footage of a coworking location is 16,697 square feet, up from 16,481 in the fourth quarter. The cost of a dedicated desk dropped $2 to $323 a month, while open workspaces were going for $175.
