By Jon Peterson
WeWork has signed two new leases in San Francisco as part of its headquarters by WeWork product, according to information provided by the company. The two new leases are for space located at 550 Kearny Street and 28 2nd Street.
WeWork now has a total of 10 headquarters by WeWork spaces in San Francisco in 10 buildings for a total of 36 floors and 200,000 square feet. The company is planning to have more leases signed in San Francisco later this year.
“I’m incredibly excited to continue to expand headquarters by WeWork in San Francisco. With these new locations in the heart of SoMa and FiDi, we’re unlocking access to the world’s most valuable spaces by securing, building out and operating move-in ready workspaces. With this product offering, we hope to help growing, medium sized business stay in the City for the long-term,” says Elton Kwok, WeWork general manager for Northern California.
The space at 550 Kearny covers two floors of the building over 22,624 square feet. The space can accommodate a total of 435 desks, and it will be open by late 2019. This office space is currently occupied by Movable Ink, which moved into the space in late last year.
This office building is owned by a venture with two New York-based real estate firms. 90 percent of the property is owned by Madison International Realty, while the other 10 percent of the asset is controlled by Brickman Real Estate. This property had a total value of $103.7 million in March 2016.
28 2nd Street will have WeWork taking six floors for a space that can accommodate a total of 254 desks. The tenant did not indicate how much square feet is involved with the lease. WeWork is still in negotiations with a few companies that are considering taking the space in both of the buildings.
WeWork started the headquarters by WeWork product in August of last year. The idea for this entity is to have flexible floor plans that start at 10,000 square feet and allow tenants to grow into more space in the future if they would like. The minimum commitment term from a tenant for the space is two years.
WeWork is planning to growth the product in many new locations this year around the United States and globally. These new markets will include Austin, Boston, Denver, Los Angeles in the United States and Amsterdam, Berlin, Jakarta, London, Sao Paulo, Seoul, Shanghai and Tel Aviv internationally.