WeWork Moves Into Downtown Phoenix

WeWork is rapidly expanding in the Phoenix market—and it has officially signed its first lease in Downtown Phoenix. The co-working operator will occupy four floors at SKB’s 101 North, located at 101 First Avenue. This is an important move for the emerging downtown submarket. Many companies use WeWork as a validator for a growing market, akin to a Starbucks moving into an burgeoning residential area, and this could be a catalyst for more corporate growth in Downtown Phoenix.

“WeWork goes into the best markets, and they know where the talent is,” Ryan Bartos, EVP at JLL and a broker on the WeWork lease deal, tells GlobeSt.com. “When companies look at Phoenix from other markets, the first question they ask is ‘where is WeWork.’ They know that WeWork has validated certain markets. They go into the best markets possible.” Bartos’ JLL colleagues managing director Andrew Medley and associate Kyle Seeger also represented WeWork in the lease deal, while JLL managing director John Bonnell, EVP Brett Abramson and SVP Chris Latvaaho represented the landlord, SKB.

So far, WeWork has targeted more mature office markets in Phoenix, like the Downtown Tempe and Camelback Corridor. “They are very active, and since they have signed leases earlier this year, we have the comparable lease to provide to a landlord. Landlords have gotten comfortable with that,” says Bartos. Now, it is expanding into new markets, including two more locations in Downtown Phoenix that are currently in negotiation.