A number of sources have indicated that WeWork is holding talks with some companies in a bid to secure to more offices in San Francisco. This is part of the company’s wider expansion program. The company, which specializes in provision of co-working services, will sign a lease for around 90,000-square-foot lease at
WeWork holding talks to lease two additional offices in San Francisco offices. The move is part of the company’s wider expansion program. Among the venues being targeted are KBS’s 353 Sacramento St, whire the company intends to lease 90,000-square-foot and Mckesson Corporation (NYSE:MCK)’s headquarters at One Post St where it is targeting a lease of between 100,000 and 200,000 square feet.
Last week, the company took the entire 251,000 square feet in 430 California St from 353 Sacramento St. This was the largest deal the company has signed in San Francisco. The company currently has 1.7 million square feet in Bay Area.
WeWork specializes in renting out working desks and charges monthly fees for members who range from single entrepreneurs to large Fortune 500 companies like General Electric Co. (NYSE:GE) and Facebook Inc. (NYSE:FB). Additionally, the company designs and manages the rented spaces.
There is growing interests from large companies which is pushing WeWork to seek larger leases. Japanese conglomerate SoftBank has rolled out a $4.4 billion investment to fund expansions. Investors have valued the company at $20 billion,with critics saying it is unjustified. WeWork has not commented on the new deals.
In March, the company’s West region managing director Jon Slavet said the company is not experiencing any demand problems. He noted that the company’s main challenge and opportunity is maintaining its consistency and culture as well as high quality services to its clients. At the time, he said that the company if focusing on securing space in buildings that have access to restaurants, transit plus affordable financial term
The 488,882-square-foot One Post is situated just next to Montgomery BART station and just a block away from another WeWork situated at 44 Montgomery St. another station, the 284,751-square-foot 353 Sacramento St is situated just a few blocks away from Embarcadero BART.
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