WeWork has reached a deal to stay at the Rosslyn office tower CoStar Group bought for its headquarters, though it is moving to a smaller space in the building.
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The coworking firm extended its lease at 1201 Wilson Blvd. and is reducing its footprint from three floors to two floors totaling 48K SF, a WeWork spokesperson told Bisnow. The company declined to disclose the length of the lease term.
The 31-story Central Place office tower was developed by JBG Smith in 2018. CoStar acquired the building in February 2024 for $339M with plans to relocate its headquarters from downtown D.C. into 150K SF of the 552K SF building.
WeWork initially signed a lease in 2018 for 83K SF across four floors of the building, and it opened there the following year.
The space has stayed open since then as WeWork closed many locations in the wake of its failed IPO in 2019 and subsequent bankruptcy process early last year. It emerged from bankruptcy in May.
During the bankruptcy process, CoStar filed a motion seeking to collect $3M in rent that it claimed WeWork hadn't paid at the tower. A WeWork spokesperson said the companies have since resolved that dispute.
CoStar didn't respond to Bisnow's request for comment.
WeWork plans to move early next year into the newly built-out ninth and 10th floors, shifting down from its space on the 25th through 27th floors. It is exiting the 27th floor at the end of this month to consolidate its footprint ahead of the move, WeWork's spokesperson said.
WeWork said the build-out is part of a larger $90M investment plan it is moving forward with to enhance its portfolio. The company said it has seen rising demand for its monthly all-access membership, including a 30% increase in its Northern Virginia locations from November to March.
“The rise of hybrid and distributed work has only increased the value of flexible workspace in the D.C. metropolitan area for companies and individuals alike,” WeWork Vice President of Real Estate Kate Harper said in a statement. “We look forward to offering our members this new, premium workplace to fuel their best work at one of the best buildings in the market.”
