WeWork Taps JLL To Lease 350K SF In LA
JLL announced Thursday that it would be the exclusive broker for the coworking company for roughly 122K SF at 222 Pacific Coast Highway in El Segundo, 60K SF at 1240 Rosecrans Ave. in Manhattan Beach, 86K SF at 10250 Constellation Blvd. in Century City, and 79.5K SF at 12130 Millennium Drive in Playa Vista. Available space ranges from suites to whole buildings, JLL said.
Over the past six months, WeWork has seen an increase in demand in the market for flexible office space, including an increase in tenants seeking full floors and full buildings, WeWork Territory Vice President Elton Kwok told Bisnow in an email.
“In Q2 alone we closed over 400K RSF in deals in Los Angeles, in big part due to full floor and full building member deals,” Kwok wrote.
JLL has also announced partnerships with WeWork in Denver, New York City, Boston, Atlanta, Dallas, Phoenix and San Francisco. The Dallas partnership is for eight coworking locations totaling 517K SF.
The agreement with JLL in LA comes as some coworking companies are reporting a budding recovery in the flex office sector, which, like most sectors, was smacked by the coronavirus pandemic and the public health restrictions that advised people to stay home.
WeWork saw a dramatic increase in leasing in April and May, and The Wall Street Journal reported that WeWork saw one of its strongest desk sales months in company history in July. Industrious saw the strongest sales week in the company’s history during the last week of July, according to the WSJ.
WeWork reported earlier this month that it lost $923M in the second quarter of 2021, an improvement from its Q1 loss of $2B. But WeWork also saw a slight drop in revenue and had 95,000 fewer memberships compared to the same period the previous year, Reuters reported.