Co-working giant WeWork is closing a signature Seattle location amid its efforts to restructure and survive its recent bankruptcy filing.
The global office space company will close its space in Capitol Hill’s Kelly-Springfield development on 11th Avenue at the end of February.
“As part of WeWork’s strategic restructuring efforts, we have made the difficult decision to end our operations at Kelly-Springfield,” a WeWork spokesperson said. “We have offered affected members the option to relocate, with our support, to our other Seattle locations and deeply apologize for any inconvenience this may cause.”
Capitol Hill Seattle Blog first reported the news last week.
WeWork has been talking to its roughly 500 landlords globally and has amended 38 leases to achieve roughly $1.5 billion in long-term savings through rent reduction, downsized leased space, shortened lease duration, or sometimes early termination of leases, the company told The Wall Street Journal.
WeWork operates seven other locations in the Seattle area, and the company had no other updates at this time about those spaces. The spokesperson said the city “continues to be a priority market for WeWork.”
The historic, five-story Kelly-Springfield location near the Pike/Pine corridor at 1525 11th Ave., was once home to REI and later a Value Village thrift store. It opened as WeWork in January 2020, just before the COVID-19 pandemic upended office work. CHS Blog reported that there were once plans to have space in the building for around 1,300 workers, including the fourth floor dedicated to space for Microsoft.
“Surrounded by bars, restaurants, and countless entertainment options, this vibrant workspace offers an oasis of productivity for teams of all sizes,” the WeWork website says of the space, which featured “light-filled lounges, modern conference rooms, and sleek private offices.”
Five Iron Golf, a high-tech indoor golf experience backed by Seattle hip-hop star Macklemore, opened on the ground floor of the Kelly-Springfield building in March 2022. Entrepreneur Robbie Cape’s sustainable chicken sandwich restaurant Mt. Joy opened just across the street in December.
GeekWire reported in December on other co-working spaces in Seattle and how they are faring post-pandemic and in the wake of WeWork’s downfall. The Cloud Room, just a couple blocks away from WeWork on 11th Avenue, is “doing better than it ever did,” owner Liz Dunn said at the time.
Co-working makes up a very small portion of the commercial real estate market, accounting for just 3.4% in the U.S. and 1.2% in Seattle. While overall office demand in Seattle is down 67% versus pre-COVID levels (2018-19), demand for flex space is actually up 3.2% year over year, according to commercial real estate technology platform VTS.
