WeWork beds in at Canary Wharf

WeWork is in advanced talks to become the first occupier of the new phase of Canary Wharf, E14.

The $10bn (£660m) co-working firm is in talks to lease a major office building at the 22-acre scheme and secure its first residential development in Europe, which will be operated under the WeLive brand.

The company is close to agreeing a deal to lease 110,000 sq ft at a rent of £50 per sq ft in the larger of the two office buildings planned for the first phase of the development previously known as Wood Wharf.

Talks over residential blocks to house micro-flats, which would be rented to WeWork members on short-term leases, are at an earlier stage. The first WeLive developments are due to open in the US imminently.

UK planning laws have made finalising a deal for the first European WeLive more complicated as it has yet to be determined precisely what use class would apply to the flats.

The Canary Wharf deal is one of a trio of new leases agreed by WeWork. The others are a sublet of 109,000 sq ft from Rio Tinto at Eastbourne Terrace in Paddington, W2, and a 21,000 sq ft lease at Deerbrook’s Sheraton House, Great Chapel Street, W1.

It has agreed a blend of rents in Paddington from £45 per sq ft to £65 per sq ft and is paying around £70 per sq ft in Soho.

Kontor advises WeWork; Bilfinger GVA acted for Rio Tinto; James Andrew International and Bluebook are letting agents at Sheraton House; CBRE, JLL and GM Real Estate act for Canary Wharf Group.

All parties declined to comment.

If you are interested in any of WeWork's current buildings please call Gryphon Property Partners on 0203 440 9800 or click on one of the following links - Aldgate - Moorgate - Devonshire Square - South Bank - Spitalfields - Soho