IWG Leases Former WeWork Space in Charlotte

The demise of coworking giant WeWork has created massive office vacancies across the nation. For a landlord in Uptown Charlotte, another coworking space provider will fill part of the void that WeWork left behind.

Switzerland-based IWG leased a little over 40,000 square feet on the 18th and 19th floors of the 23-story First Citizens Bank Plaza, at 128 South Tryon Street, the Charlotte Business Journal reported.

CBRE brokers Kris Westmoreland, Stephanie Spivey and Joe Franco represented the landlord, Dornin Investment Group, in lease negotiations.

New York-based WeWork, which filed for bankruptcy in November, vacated seven floors in the 476,000-square-foot building last year. Dornin subsequently turned its focus toward prospective tenants looking for move-in ready offices.

“When [WeWork] left, what we were left with was some fairly nice, move-in ready space that was fully furnished,” Westmoreland told the outlet. “It was a very fair deal for the landlord and tenant, and it didn’t require a lot of capital from IWG to make the space its own.”

IWG, led by CEO Mark Dixon, aims to move into the tower this summer, which will up its occupancy rate to 60 percent. A number of other tenants have expressed interest in what’s left of WeWork’s former space, Westmoreland said.

Dornin took control of the building last year after the previous owner, the Dilweg Companies, surrendered it via deed-in-lieu of foreclosure. Dilweg tried to renegotiate the loan tied to the property but failed to reach an agreement with Dornin. Dilweg owed about $120 million of the loan when it handed back the keys.

Dilweg bought the building for $79 million in 2017, when it was just 29 percent leased. The Durham-based firm performed several renovations, including an updated lobby and the addition of a 1,200-square-foot fitness center.

Westmoreland credited Dilweg for modernizing the nearly 38-year-old building.

Meanwhile, WeWork maintains two Charlotte locations — the RailYard in South End, and the Regions 615 building in Uptown, the outlet reported.

In September, IWG leased 20,000 square feet in the Ervin building, at 4037 East Independence Boulevard, roughly 5 miles east of First Citizens Bank Plaza. The company is bullish on the hybrid-work landscape, with over 1,000 locations across the United States.

—Quinn Donoghue