Retail giant Marks & Spencer has sublet office space at 5 Merchant Square, Paddington, to WeWork, EG understands.
The co-working provider has taken 160,000 sq ft over seven floors, in one of its biggest UK deals to date.
European Land, the Reuben Brothers and Jarvis family joint venture, owns and manages the 11-acre mixed-use neighbourhood.
M&S signed at the space in 2008 on a 30-year lease, paying a rent of close to £53 per sq ft. The retailer has been in talks to sublet the space to WeWork for more than a year.
WeWork’s Merchant Square location marks the 50th WeWork premises to be announced across the UK and Ireland, where the company already has 39 open locations, which are home to more than 35,000 members.
Last year, the firm agreed to open the largest co-working space in the world at Almacantar’s Two Southbank Place, SE1. The New York-based company signed for more than 280,000 sq ft at the building. Two Southbank Place is expected to be operational in August 2019.
Earlier this month, WeWork also leased almost 100,000 sq ft from Kennedy Wilson on the South Bank at Friars Bridge Court, SE1.
A spokesperson for Marks & Spencer said: “We’ve consolidated our London office space as we continue to create a simpler, more effective M&S. With Waterside House [also in Paddington, at 35 North Wharf Road] we’ve created a more efficient and inspiring working environment for our colleagues to help us better serve our customers.”
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