The manager of Prime US REIT says it is currently in discussions with a wholly-owned subsidiary of WeWork on the resolution of its lease obligation at Tower 1 at Emeryville.
WeWork currently occupies 56,977 sq ft of space within the REIT’s 3.89 million sq ft portfolio and contributes 2.5% of its cash rental income as at June 30.
Emeryville is a city located in northwest Alameda Country in California.
The statement, on Sept 13, comes as the local San Francisco press reported that WeWork will be closing its co-working operation at the building.
According to the manager, the REIT is protected under the terms of its contract, which will cover the tenant’s monthly lease obligations through as far as end-2022.
As at 9.50am, units in Prime US REIT are trading flat at 86 US cents.
Photo: Prime US REIT
