Within 18 months of signing a 15-year lease, WeWork has closed its Northbridge operations.
Within 18 months of signing a 15-year lease, WeWork has closed its Northbridge operations.
The US-headquartered company provides flexible workspaces across more than 480 locations worldwide.
WeWork has been operating two co-working spaces in Perth: a base at Central Park on St Georges Terrace; and level four within the William Square building at 45 Francis Street in Northbridge.
Members of WeWork’s co-working space in Northbridge received a notification from WeWork today, saying that the company had been conducting an in-depth review of its global real estate portfolio and had decided to close down its Francis Street premises.
Business News was told WeWork staff had since held meetings with a number of Northbridge members to discuss shifting their operations to their Central Park premises.
The Francis Street location has already been removed from WeWork’s website, with the WeWork William Square Northbridge Facebook page listing the space as permanently closed.
WeWork signed a 15-year lease for the William Square space in mid-2019, taking out 3,414 square metres on level four, which followed the group’s entrance into the Perth market earlier that year.
The group previously topped the Business News Data & Insights Flexible Workspaces and Startup Places list, with a total 11,314sqm of space in Perth.
WeWork now ranks as second largest flexible workspace provider, behind International Workplace Group (9,300sqm).
Spacecubed and Liberty Flexible Workspaces rank third and fourth on the list and both groups expanded their portfolios this year.
The company’s Northbridge shut down follows a series of other workspace closures, including its first ever location on 154 Grand Street in New York City in July, after its 10-year lease expired.
In October, WeWork closed three of its locations in Washingon DC (Manhattan Laundry, Wonder Bread Factory and 718 Seventh Street), a move it said in a statement that was part of its plans to shift its focus on its path to profitability and newer spaces.
In September, it was reported that WeWork Australia received a $110 million equity injection from its parent company, WeWork Companies.
That followed concerns earnings would be hit by the pandemic.
WeWork lists 20 Australian locations on its website, including a space on Queen Street in Brisbane it lists as opening in February 2021.
Business News approached WeWork for comment.
