WeWork’s former Manchester flagship snapped up

Cubo, the rapidly growing flexible workspace provider, has acted quickly to take over the 60,000 sq ft No1 Spinningfields site vacated by the struggling US office brand just last month.

Cubo has signed a 12.5-year lease on the No1 Spinningfields space that WeWork exited amid well-publicised financial troubles.

The site spans three floors and more than 1,100 desks and will be Cubo’s second flex offering in Manchester.

The company, headed up by chief executive Marc Brough, signed a 12.5-year lease on 16,000 sq ft at M&G’s Lincoln last year before doubling its space to 32,000 sq ft shortly afterwards.

Cubo also has sites in Birmingham, Sheffield, Leeds, Derby, Nottingham, Glasgow, and Edinburgh and is looking for more as part of its growth strategy backed by Literacy Capital.

“We are beyond excited to have been given the opportunity to operate out of what is one of Manchester’s best office buildings,” Brough said.

“I want to reassure all existing occupiers across the three floors of the flex office space that my team will do our absolute utmost to make the transition to Cubo as simple and as hassle-free as possible, as we integrate everyone into the Cubo community.

He added: “The new Cubo will offer an enhanced level of service to what they have come to expect from WeWork and provide access to all our workspaces across the UK.”

Brough praised landlord Schroders Investment Management and agent OBI for acting so quickly to facilitate the deal.

“[They] have acted with great precision and focus to enable this transaction to be completed in a matter of days.”

Cubo was represented by Walker Morris and Rigby & Co.

Schroders asset manager Rob Prescott said the team was pleased by the deal, describing it as “the largest letting in Manchester for two years”.

“The letting demonstrates the strength of the local market but also highlights the sustained demand for best-in-class assets such as No 1 Spinningfields,” Prescott continued.

“Cubo’s approach is aligned with our vision for the asset, which is focused on delivering operational excellence for all tenants and visitors.”

Philip Scott, head of the Manchester office for Schroders Capital, added: “This is a prime example and demonstrates the importance of our regional presence and expertise, that can efficiently implement asset management initiatives to enhance value, owing to the proximity of the local team to our regional portfolio.”

The company’s arrival at No1 Spinningfields was welcome news to Schroders, which waved goodbye to WeWork in early May after seven years.

The closure came months after WeWork filed for chapter 11 bankruptcy in the US and embarked on a reorganisation of the business.

Speaking at the time, a spokesperson for the firm said the decision to close the Spinningfields office was part of WeWork’s efforts to achieve a “sustainable capital structure and profitable business to serve our members for the long term”.

The company’s other Manchester sites at 1 St Peter’s Square, The Hanover Building, and Dalton Place, remain operational.

Yesterday WeWork said it had “successfully emerged from chapter 11 and completed its global operational and financial restructuring”.