(Up-to-date at 3:30 p.m.) Coworking big WeWork is setting up to shut down its Crystal Town spot future month, in accordance to an email despatched to members this early morning.
“I am reaching out to regretfully advise you that the WeWork Crystal City location will be closing,” mentioned the e-mail, which was shared with ARLnow by a member. “This area has stood solid for 5 years, and leaves a historic mark on the legacy of WeWork.”
“We know the final calendar year has been entire of surprises and difficulties for every particular person all over the earth,” the electronic mail carries on. “In purchase to deal with some of these troubles, it was crucial that we cautiously evaluate and right-measurement our portfolio.”
Amid the pandemic, WeWork has been planning to consider “drastic action” as it pursues the intention of profitability at the conclude of this 12 months. The organization at present has 759 open and coming areas in 119 metropolitan areas around the globe, in accordance to its web-site. That is down from 828 locations at a person place previous year.
Fueled by substantial private expenditure, WeWork grew at a torrid rate all through the 2nd fifty percent of the very last 10 years, but as growth stalled its CEO and cofounder was ousted from the enterprise and its planned IPO was scrapped.
The JBG Smith-owned making that residences WeWork in Crystal Town — 2221 S. Clark Street — also consists of a single of the only two WeLive places at any time opened. An experiment in communal living, WeLive was described to be on the chopping block last year.
It was not promptly apparent whether WeWork designs to near the household house together with the coworking place — the former occupies most flooring of the growing old office developing, though WeWork is housed in the major two flooring. JBG, meanwhile, has been on a redevelopment spree in Crystal Metropolis adhering to the arrival of Amazon’s HQ2.
Soon after the first publication of this report, a WeWork spokeswoman verified to ARLnow that WeWork would be closing, but mentioned nothing at all closing has determined about the foreseeable future of WeLive. WeWork places in Rosslyn and Ballston are remaining open up, she said.
“In streamlining our portfolio towards profitable progress, we have resolved to go on from 2221 Clark St. in Arlington,” the spokeswoman reported. “With many excellent destinations in the immediate location, including 901 N. Glebe and 1201 Wilson, we glance ahead to offering our associates with initially-course, adaptable house methods.”
The shift-out day for the Crystal City WeWork is Feb. 26, she included.
WeWork is also closing a few destinations in D.C., according to the Washington Small business Journal.