urbanSTL

WeWork has put a halt to the signing of new lease agreements with property owners as the lossmaking group tries to rapidly rein in costs, according to people briefed on the matter.  The move will rattle commercial property owners across the globe who rented to WeWork, which often upgraded the spaces so the group could re-let the buildings to its own customers.  Landlords have been bracing for the possibility that WeWork, which has become the biggest office tenant in New York and one of the largest in London, could suspend its expansion.  The decision to put all new leases on ice comes as WeWork’s parent group, the We Company, readies to lay off thousands of its 12,000-plus employees in the coming weeks.

lol  What a goofy way to word that.  I doubt that's what has the landlords concerned...

More likely they are worried it is going to go belly up in the net 6 months and they will have hundreds of thousands of square feet of empty Class A office space.

chaifetz10 wrote:Luckily, while them going belly up would free up a lot of Class A, those companies with agreements to use WeWork space would also be out of space.  Some percentage of the space WeWork would lose could be immediately absorbed by the end users who have been paying WeWork for it.  It would be messy, but I bet landlords are preparing to pursue temporary arrangements until long term leases can be made.

This is what I've been suspecting these past few months, listening to all the handwringing about WeWork. Clearly Neumann is a toad and he will take the company down in flames, but why wouldn't the owners the spaces just go, "OK, we'll pursue direct agreements with the companies WeWork has been subleasing to in our buildings"? I'm sure there's some legal work that has to be done, especially if WeWork really does file bankruptcy and their creditors then lay claim to lease proceeds, but I would think the landlords, comprising a substantial portion of those creditors, would be able to make a valid claim.

^^^Of course landlords could pursue leases with current tenants.  The important questions are:  how much of WeWork's leased space is subleased, to whom, for how long, how much is actually occupied and current on rent, and how reliable are any of those publicly-available numbers?

Also, many of these landlords invested significantly in their properties to upgrade large amounts of space based on long-term leases to WeWork...

Does anyone know what is going on at 505 Washington Avenue? There's been a lot of activity over the last 1-2 months, mainly demo work I believe. 

dbehrens011 wrote: ↑

Oct 17, 2019

Does anyone know what is going on at 505 Washington Avenue? There's been a lot of activity over the last 1-2 months, mainly demo work I believe. 

Just interior demo, and that's the only permit for the building as far as I know.
From what I can tell, they've cleared out the whole place.  There don't appear to be any interior walls left.

I'd love to see a new building constructed there, as well as across the street on that surface-level parking lot. 

I don't mind the building at all, as long as it is cleaned up a bit. I have always thought it would be a good space for a marketing/creative firm

dbehrens011 wrote: ↑

Oct 17, 2019

I don't mind the building at all, as long as it is cleaned up a bit. I have always thought it would be a good space for a marketing/creative firm

I like that building.  It would work well for a mid-sized law firm, money manager or other professional services firm too.  Give it the Sterling Cooper treatment.

chaifetz10 wrote: ↑

Oct 17, 2019

KansasCitian wrote: ↑

Oct 17, 2019

I'd love to see a new building constructed there, as well as across the street on that surface-level parking lot. 

With all of the open lots in the city, I highly doubt any developer would pay to demo this one for new construction.  Would be be "ideal"?  Absolutely.  But not really in the realm of realistic.

Is this not what someone tried to do at 300 S Broadway? 

dbehrens011 wrote: ↑

Oct 17, 2019

Does anyone know what is going on at 505 Washington Avenue? There's been a lot of activity over the last 1-2 months, mainly demo work I believe. 

Building is owned by Daniel J. Cook, MD, Anesthesiologist, Inventor  and it was nominated for the National Register last year.  Lots of pics, plans, and building info in the application:  National Register of Historic Places Registration Form (pdf)

I like 505 Washington.  Built in the late 50's, we don't have many similar periodic structures downtown.  Most of the commercial buildings constructed during the late 50's were in the inner ring suburbs.  I do wonder about the longevity of the poured reinforced concrete structure which gives the building it's unique design.

Love 505 Washington, especially juxtaposed against the 511 Wash building cast iron.  I'd love to have an office in there.

urbanitas wrote: ↑

Oct 17, 2019

dbehrens011 wrote: ↑

Oct 17, 2019

Does anyone know what is going on at 505 Washington Avenue? There's been a lot of activity over the last 1-2 months, mainly demo work I believe. 

Building is owned by Daniel J. Cook, MD, Anesthesiologist, Inventor  and it was nominated for the National Register last year.  Lots of pics, plans, and building info in the application:  National Register of Historic Places Registration Form (pdf)

I was not aware of this.  This is a good thing - he rehabbed the Bride House and owns the building that houses La Bamba, among other downtown buildings.

I assume that their was not much new in the Biz Journals article on the downtown projects that they referenced and that at least one of the projects was BPV phase II, maybe MLS stadium being another even though ground has broken yet.  Can someone clue in the other projects as curious.   Thanks

https://www.bizjournals.com/stlouis/new ... t-are.html

chaifetz10 wrote: ↑

Oct 19, 2019

I don't have access, but the tags include Bob O’Loughlin and Build a Bear, so I assume Union Station is one.  And the main photo is of demolition within the former St. Louis Post-Dispatch building, so I assume Square is another.  

thanks, didn't think about Union station/build a bear and Square.  Square could be huge if it helps spark, continue to build a large geospatial presence downtown.  I also think Convention Upgrade/Expansion will be another driver.

dredger wrote: ↑

Oct 18, 2019

I assume that their was not much new in the Biz Journals article on the downtown projects that they referenced and that at least one of the projects was BPV phase II, maybe MLS stadium being another even though ground has broken yet.  Can someone clue in the other projects as curious.   Thanks

https://www.bizjournals.com/stlouis/new ... t-are.html

Nothing new really.  And maybe I missed something, but it was not clear which "four projects" they think are the catalysts.  The titled sections of the article reference Union Station, Midtown Alley, Square's new space and planned innovation district, the 10-year economic development plan being prepared by SLDC, and the 3 large vacant buildings downtown in redevelopment limbo.  But then it also mentions the MLS Stadium, Ballpark Village, and NGA West, so...  It did not mention the convention center expansion.

The intended takeaway of the article seems to be that there is a lot happening on the fringes of downtown, but that it hasn't translated to downtown development yet, at least not in terms of new office space or filling those vacant buildings.

One interesting comment was that the main reason Build-A-Bear is relocating to Union Station was LHM's commitment to make it a "family friendly" environment.  The claim is that they would not have considered leasing space there otherwise.

Another note was that Trivers Architects is now working with Square on a master plan for the innovation district around their new office.

pattimagee wrote: ↑

Oct 20, 2019

Union Station/Acquarium/MLS - Ballpark Village, Post Dispatch building & District, & NGA

Thanks, would say three out of four solidly downtown.   Hopefully with Square moving forward and Convention Center expansion downtown will finally see some movement on one or two of the big three empty buildings between Railway Exchange, 909 Chestnu and Jeff Arms.