WeWork Continues Silicon Valley Expansion with Two Leases in San Jose and Palo Alto

WeWork, San Jose, Palo Alto, RMW Architecture and Interiors, Park Place Associates, Groupon, HQ by WeWork, San Francisco,
Image Credit: WeWork

By Meghan Hall

WeWork’s rapid expansion throughout the Bay Area has meant its footprint has neared nearly 1 million square feet with locations in more than 20 Bay Area cities ranging from Mountain View to San Francisco to Mill Valley. The coworking firm’s expansion is continuing strong into 2019, with two new leases secured in Silicon Valley. The first is located at 152 N. Third St. in San Jose, where WeWork has agreed to take 75,000 square feet, according to a report by the
San Jose Mercury News. The second lease is for the occupation of a 40,140 square foot office building located at 3101 Park Blvd. in Palo Alto, according to planning documents submitted to the City.

The bulk of WeWork’s space is in San Francisco, where the company is one of the top office tenants in the City, with around 1.4 million square feet of space leased. WeWork’s expansion to 152 N. Third St. has been just announced on the company’s site, and it is the company’s third coworking space in San Jose.

WeWork’s lease in Palo Alto will be its first in the City. According to city documents dating December 19, 2018, plans indicate that WeWork will renovate both the exterior and interior of of 3101 Park Blvd. Permits for the exterior of the project, which are still under review, show that WeWork plans to build a coffee bar, renovate the roof and conduct non-structural demolition on all three floors. The documents also place the project’s valuation at $4 million.

For the building’s internal design, WeWork has hired the San Jose office of RMW Architecture + Interiors. The firm’s clients have included the likes of other major Bay Area companies such as Cisco, Adobe and Linkedin.

The property is owned by Palo Alto-based Park Place Associates. Groupon was the building’s previous tenant and had leased the building since 2011 but moved out at the end of last year. Public documents indicate that WeWork plans to keep the building’s current building use as office space, but how that space will be utilized is unclear.

WeWork’s offices include a range of amenities for its coworking spaces and tenants, including unique lounge areas, conference rooms, printing, bike storage and coffee bars. Many of their popular location are within close proximity to public transit and major interstates. The Palo Alto office is blocks from the California Ave. Train Station and State Route 82.

WeWork’s 400 Concar Dr. in San Mateo, which would be the company’s next closest location to the Park Blvd. site, rents hot desks for $475 per month and personal private offices for $950 per month, according to its website. Private offices that can accommodate up to 20 people cost approximately $10,200 per month. As WeWork has matured, its turned its eyes on larger tenants, establishing HQ by WeWork to attract businesses ranging in size from 11 to 250 people who are not ready to commit to long-term leases.

WeWork did not immediately return The Registry’s request for comment.

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