Coworking giant WeWork Inc. is closing its San Fernando Valley flagship location at Worthe Real Estate Group’s The Tower in Burbank.
The Real Deal reported news of the closure, citing anonymous sources.
Since 2017, WeWork has occupied 75,000 square feet at 3900 W. Alameda Ave. It remains unclear when exactly WeWork will vacate.
At the time when WeWork had signed a lease at the 31-story building, the deal signified WeWork’s 12th location in L.A. County.
WeWork will now have only two remaining locations in the San Fernando Valley: one at 5161 Lankershim Blvd. in North Hollywood, and at 611 N. Brand Blvd. in Glendale.
The news comes less than a month after reports of the closure of the WeWork at Hollywood and Vine. The Hollywood location at 1601 Vine St. was due to close at the end of October. The building’s owner, JH Snyder, put the property up for sale in August.
Last year, WeWork shuttered one of its prime West Hollywood locations, at 925 N. La Brea Ave., where it had leased roughly 48,000 square feet leased through 2029. Spaces, a coworking firm owned by International Workplace Group, took over about two-thirds of the lease.
WeWork has been saddled with more than $2 billion in short-term debt. In the second quarter, the New York-based company had reported a loss of $635 million.
The Tower had a monthly asking rate of $4.85 per square feet for the space WeWork is vacating. WeWork will be saving $4.3 million a year upon vacating the Burbank location, according to The Real Deal.
WeWork declined to comment on the closure.