Financially troubled WeWork has scaled back its operations throughout much of the nation since filing for bankruptcy in November, but its leases in Dallas-Fort Worth remain intact for the most part.
The coworking space provider has maintained seven company-branded locations in the region, the Dallas Morning News reported.
Three coworking spaces operated by Dallas-based Common Desk, which WeWork acquired in 2022, have closed in recent months. Common Desk still has 11 locations throughout North Texas.
WeWork’s other DFW locations are in Uptown and Plano.
“Dallas continues to be a priority market for us. Our goal is to be able to stay in all of our operating locations today, and I’m excited to see what unfolds in the market,” WeWork’s Peter Varellas told the outlet.
High demand for coworking space in Dallas, and the mutual benefits for WeWork and landlords, are key factors driving WeWork’s confidence in the region, Varellas said.
The New York-based company is facing a challenge at Williams Square, a 1.4 million-square-foot office complex in Irving. The holding company behind the property has asked the U.S. Bankruptcy Court to require WeWork to pay rent. Plus, a fourth Common Desk location in Irving’s Canal Centre has been added to the list of properties with which WeWork seeks to sever ties.
WeWork has been engaging in discussions with landlords across the U.S. and Canada to negotiate more favorable lease terms, while terminating some other leases, to remain operable under Chapter 11 bankruptcy protection. Varellas clarified that Common Desk leases are handled separately.
WeWork recently submitted five lease adjustments to the bankruptcy court for approval, including rent reductions, shortened terms or reduced square footage. Those contracts are for locations in Arizona, Ohio, New York and Virginia.