WeWork has secured its largest tenancy deal to date in Australia, taking 11,000sq m of a Pitt Street office building in Sydney CBD as it continues its expansion in Australia’s office space sharing market.
The tenancy deal was struck with building owner ARA Australia on a 12 year lease for 10 floors of the office building at 320 Pitt Street.
The US co-working giant has now secured 15 sites across Sydney, Melbourne and Brisbane, with plans for its first opening in Perth later this year.
The latest deal comes as reports WeWork’s co-founder and largest single shareholder Adam Neumann has sold a sizeable portion — more than $700 million — in the office space sharing company as it prepares for its IPO this year.
WeWork has a US$47 billion valuation filed for its public offering paperwork in December last year, as reported by the Wall Street Journal.
The Pitt Street take up comes as office vacancy rates reach towards record lows in major capital cities Sydney and Melbourne and the co-working sector continues to expand.
Co-working operator The Commons opened its fourth office last week, located within the QV building in Melbourne’s CBD, the company has other locations in Collingwood, South Melbourne and Sydney suburb Chippendale.
Earlier this month Hub Australia, opened its sixth location in Melbourne at the ICI House at 1 Nicholson Street. Hub also has plans to open its seventh office location at Custom House in Sydney next month.
WeWork head of real estate Australia and New Zealand Lachlan Buchanan said the Pitt Street location provides space for companies ranging from start-ups to large international enterprises.
“320 Pitt Street has a wonderful ability to cater for larger requirements, allowing our members to scale quickly as well as support the large enterprise companies who now represent over 40 per cent of our global membership,” he said.
The tenancy, within the 32 level A-grade building, was negotiated by JLL’s Justin Hayes and Alex Wong and Knight Frank’s Aaron Weir and Tina Raftopoulos.
WeWork, which has 485 locations in 105 cities across 28 countries, first expanded into Australia in 2016 with its first office space at Martin Place.