WeWork Cuts Deal With Tishman Speyer To Hand Over 217K SF Coworking Space
WeWork has handed back a huge coworking space to Tishman Speyer, Bisnow has learned, as it appears on the verge of calling it quits on Queens.
WeWork has reached a deal with the New York-based real estate giant to hand back 217K SF leased to the bankrupt coworking operator at The Jacx in Long Island City, the companies told Bisnow Wednesday.
Tishman Speyer's flex workspace brand, Studio by Tishman Speyer, will operate the large coworking space at its 1.2M SF development at 28-07 Jackson Ave.
WeWork members operating out of The Jacx will be offered the opportunity to stay in their spaces for the duration of their agreements with the coworking company, spokespeople for WeWork and Tishman Speyer confirmed to Bisnow. Members of WeWork’s All Access and On Demand program will also be able to use the space, WeWork said, even after ownership is transferred to Tishman Speyer’s Studio brand.
WeWork said the transition will take place in the coming days, affecting the several hundred individuals and companies housed in its coworking space at The Jacx.
“We are pleased to come to an agreement to transfer our operations at The JACX to Studio by Tishman Speyer,” a WeWork spokesperson told Bisnow by email. “We are grateful for Tishman Speyer’s partnership and look forward to working with them on a seamless transition of operations.”
The agreement has been in place since Monday, a Tishman Speyer spokesperson said, which would have put it hours before WeWork filed for bankruptcy.
Entering the year, WeWork operated two locations in Queens, at the Jacx and at Studio Square in Astoria. Neither building is listed on its website anymore.
A WeWork spokesperson said the company is still negotiating with the owner of Studio Square, but Google lists the location, a 60K SF spread across the street from Kaufman Astoria Studios at 35-37 36th St., as permanently closed. The building is owned by the Vanbarton Group, according to city property records. A Vanbarton representative didn't immediately respond to a request for comment.
The Jacx and Studio Square leases weren't among the 69 WeWork locations the company is looking to reject as part of its Chapter 11 restructuring process. Roughly 40 other New York City WeWorks spanning a 1.5M SF were put on the chopping block.
The coworking company said in its going-forward business plan that it could exit as many as 163 locations in the U.S. and Canada. It is also negotiating with hundreds of its landlords, working to create a “sustainable capital structure and profitable business” that works long-term for its members and the landlords it partners with, the WeWork spokesperson said.
WeWork said that it is approaching each building on a case-by-case basis to find working options for its members and landlords. The company is looking at options including reducing rent and tenancy expenses, alternative lease structures and investment opportunities for its strongest assets.
WeWork has been a tenant in The Jacx since 2015, when it signed for 215K SF across the fifth through 15th floors, according to a release. It now occupies a slightly larger footprint, which will be transferred to Tishman Speyer’s Studio brand.
The Jacx will be the 17th Studio location that Tishman Speyer operates worldwide and one of nine New York City locations. The Jacx was the only WeWork location in Tishman Speyer’s U.S. portfolio, a landlord spokesperson said.
“We are pleased to have come to an agreement that will allow for the creation of a Studio by Tishman Speyer location at The JACX, our creative office campus located in the heart of Long Island City,” the Tishman Speyer spokesperson told Bisnow by email. “We are excited by this opportunity to serve The Jacx’s current flex office customers — as well as Studio’s growing member base — with Studio’s best-in-class workspaces, amenities and services.”
UPDATE, NOV. 9, 5 P.M. ET: This story has been updated to include information about WeWork All Access and On Demand members’ access to The Jacx.