WeWork's lease in Q4 at an all-time low

January 22, 2020
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WeWork has only signed four new leases in the fourth quarter, a 93 percent drop in leasing activity. CNBC reported that this comes at the tail end of its failed IPO.

The news comes as WeWork tries to tamp down expenses after an emergency injection of $5 billion from SoftBank, which ceded 80 percent of control of the company to the investment giant.

The new leases total 184,022 square feet, which is down from an average of 2.54 million square feet in the previous four quarters.

The top company in the flexible office space market is now Spaces, owned by IWG. Spaces raised its leasing footprint by 11 percent to 284,916 square feet.

WeWork has cut about 19 percent of its workers, or 2,400 jobs, to “create a more efficient organization.”

The company also closed its WeGrow private school, and said it will focus on large businesses instead of small and mid-size firms.

New space in the market went down 75 percent in Q4, and WeWork’s share went down to 18 percent from 69 percent.

“We had seen this coming right after the IPO news,” said Julie Whelan, Senior Director of Research at CBRE.

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