WeWork may be ready to make a big splash in Pittsburgh.
Even as it struggles with a proposed initial public offering, the coworking giant could be taking a sizable chunk of space in U.S. Steel Tower, Downtown.
According to the Building Pittsburgh blog, Mascaro Construction has received a $9 million contract to do tenant improvements totaling 105,000 square feet for WeWork in the city’s tallest building.
The square footage translates into more than two floors of space in the Grant Street landmark. The Pittsburgh Post-Gazette reported in July that the New York City-based company could be eyeing as many as three floors in the 64-story skyscraper.
A WeWork spokeswoman declined comment on the Mascaro contract, as did Samuel McGill, the Cushman & Wakefield/Grant Street Associates senior vice president who is representing the company in Pittsburgh. Mascaro did not return calls seeking comment.
WeWork settled on U.S. Steel Tower after conducting a hunt for space last fall in or near Downtown.
Among the other sites it apparently considered were the Pittsburgh Athletic Association clubhouse in Oakland being redeveloped by Walnut Capital and the Allegheny Building, the Federal Home Loan Bank Building, and the Bank Tower Downtown.
Last fall, WeWork issued a request for proposals for 30,000 to 50,000 square feet. Later there were reports that the company was considering 80,000 to 120,000 square feet.
On its website, WeWork states that a Pittsburgh location is coming soon, but does not identify where.
The contract with Mascaro comes at a time that We Co., WeWork’s parent, weighs what to do about a planned IPO. According to the Wall Street Journal, the company is considering a valuation for the IPO of less than $20 billion, well below the $47 billion valuation assigned in January.
That has led some investors to prod it to scrub the planned offering.
The company hoped to raise up to $4 billion through the IPO and up to $6 billion in debt. If the IPO doesn’t move forward, the company may have to scale back plans for further growth, according to the Journal.
In Pittsburgh, WeWork, known in part for the free beer and wine it offers to members, would join a growing number of coworking space providers.
They include Beauty Shoppe, Regus, Industrious, Novel Coworking, Serendipity Labs, and ProSuites2, which also is located in U.S. Steel Tower.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: September 10, 2019, 11:00 a.m.