WeWork has entered into a revenue-sharing agreement under which it will continue to operate on a three-floor coworking space in Boston. The deal is solidifying the company’s long-term stay at State Street Financial Center, a Class A+ office tower in downtown Boston’s Financial District, owned by Fortis Property Group.
WeWork has been incorporating more revenue-sharing deals as alternative leasing agreements in its portfolio. With this strategy, both operators and landlords can share the on-going demand for this type of space, in line with coworking trends.
The company’s total footprint at the property is totaling 64,323 square feet, according to CommercialEdge. Other tenants include CFGI, Stanton Chase, Taylor Hopkinson and Sherin and Lodgen LLP.
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The 36-story Street Financial Center came online in 2003 and encompasses 1.1 million square feet of office space and 900 parking spots. The current ownership picked up the property in 2006 for $889 million from seller American Financial Realty Trust, the same source shows.
Since then, the building became subject to a $1 billion-plus refinancing deal closed in 2022. The proceeds were used for existing debts and provided more than $200 million for capital upgrades such as fully renovations of the lobby, amenity center, food services and reconfigured floorplates, with a focus on wellness and lifestyle spaces.
The skyscraper at 1 Lincoln St. is close to Interstate 93 and to South Station. Boston Logan International Airport is 3 miles away, while Cambridge, Ma. is 6 miles northwest.
A surge in coworking spots
Coworking spaces continue to gain momentum in the U.S., with the total number of locations reaching 7,538 in the third quarter of 2024, a recent CoworkingCafe report shows. Across the 25 leading markets in the country, Boston recorded 4.8 million square feet of shared space spread across 208 coworking locations, remaining in the top 10 leading metros.
With more companies looking into hybrid and remote work solutions, WeWork launched Coworking Partner Network, an affiliate program with third-party operators that will allow existing members to access new flex office space in markets across the U.S. and Canada. The network launched last month and secured its first affiliate with Vast Coworking Group, a franchiser that operates more than 190 locations in 31 states and 10 cities in Canada.