WeWork Expands Melbourne Co-Working Footprint

Global co-working giant WeWork has signed a 12-year lease in Melbourne’s CBD, marking its third Victorian location as the co-working space provider takes advantage of strong office demand.

The co-working provider will occupy four levels at 222 Exhibition street, a building owned by LaSalle Investment Management.

LaSalle acquired the 29-storey mixed-use A-grade tower for $231 million in 2015.

WeWork Australia and New Zealand senior director of real estate Jonathan Kearins said the building fits within the group’s growth strategy in the CBD market.

“Diversity of locations is key to our network strategy, and the position of this site on Exhibition St was a natural fit for WeWork’s community of members."

The lease agreement secures 5,250sq m of commercial office space for more than 1000 WeWork members, including 1,228sq m outdoor terrace space on Level seven, along with building signage rights.

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Kearins said enterprise members, such as Microsoft and Twilio, are WeWork’s fastest growing segment, comprising more 20 per cent of the company’s total membership.

WeWork will have six open locations across Australia, thanks to this week's opening of its fourth Sydney location at 64 York Street.

The company's Melbourne holdings include ten floors at 401 Collins St, 114 William Street and a 152 Elizabeth Street location.

WeWork recently nabbed all six floors of Leanlease’s Daramu House office building in Sydney’s Barangaroo South and in earlier this month expanded its Australian footprint into Brisbane's market with its 310 Edward Street CBD location.

The latest Exhibition Street location is expected to open in March 2019.

Founded in 2010, WeWork was recently valued at $US 20 billion and currently has 274 locations in 22 countries around the world.