Trio of deals completed by Addleshaw Goddard for WeWork highlight appetite for flexible co-working space, not only for start-ups and freelancers, but large corporates in the UK's main business centres.
A new wave of flexible and personalised office space is challenging the traditional UK office market according to Iain Hindhaugh a leading real estate specialist at Addleshaw Goddard who has advised WeWork on a trio of deals in June, including what will be the world's largest co-working space.
The deal by WeWork, which is also the largest leasing deal in the City this year, sees the New York company continue its march on London by taking 280,000 square feet at Two Southbank Place from property developer Almacantar. The site is part of a major redevelopment scheme near Waterloo.
In June, the Addleshaw Goddard team also completed WeWork's first UK deal outside of London, by taking 60,000 square feet at the new Spinningfields development in Manchester, illustrating Manchester's emergence as a hub for media and technology brands. More than 8,000 start-ups were established in the Greater Manchester region in 2016. WeWork expects to be operational in the new No.1 Spinningfields building, which is being developed by Allied London, at the start of next year.
Addleshaw Goddard helped WeWork complete its hat-trick of deals in June, with the letting and refurbishment of 125 Shaftsbury Avenue, which is also owned by Almacantar, and is situated in Soho, London. The building provides 190,000 square feet of office and retail space, of which WeWork has agreed to lease 140,000 square feet. It is one of 21 WeWork locations in the UK.
Iain Hindhaugh, a real estate partner at Addleshaw Goddard who has advised WeWork commented: "These recent acquisitions highlight WeWork's rapid expansion in the UK, fuelled by the demand for alternatives to the traditional occupier model. There is growing recognition, by creative start-ups, to large corporates, that working environments are shifting. WeWork has been at the forefront of that movement, and this business model has really taken off - evidenced by the number of new entrants to this market. We have a real innovator in our midst, who is shaping new models of use of office space. It is an exciting time to be working in this sector, and it is also great to see the WeWork brand arrive in Manchester."