[4] The company renovated the building's interior to create private offices and co-working space for Seattle small businesses.
Similar to challenges faced by competitors WeWork, Regus and Industrious, co-working companies have had to grapple with a mixture of socio-economic factors which have impacted the broader economy and office culture.
With a business model centered around providing flexible office space solutions to a diverse clientele, the company expanded its footprint across multiple cities and countries, capitalizing on the increasing demand for shared workspaces.
With businesses downsizing their physical footprints or opting for remote-first policies, the company faced mounting vacancies across its co-working locations, leading to a decline in occupancy rates and revenue.
Under financial distress in 2023, the company entered into foreclosure proceedings[9] with LoanCore Capital for 1801 Broadway in Denver, a 17 story office building.
[14] Office vacancy trends continued to accelerate into 2024 with a flight to quality[15] being seen across Class A office buildings, the company was then forced into a foreclosure auction[16] for a coworking space in Houston, the Scanlan Building after RGA Reinsurance Co filed to foreclose on the property at 405 Main St.[17] Under financial distress, the company was forced to surrender a coworking building in Chicago's North River neighborhood at 420 West Huron Street after the company defaulted on a commercial mortgage issued by WinTrust Financial.