WeWork laid off hundreds of more workers Thursday, the latest in a series of hits for the shared-office business.
- Rent is becoming an issue: Columbia Property Trust announced in its earnings call that WeWork’s struggles played into lowering the ranges of its guidance for next quarter. The co-working company paid 90 percent of its April rent for the offices it leases from the REIT in San Francisco and Washington D.C.. WeWork also has a lease for the entire 115,000-square-foot office portion of Columbia’s 149 Madison Avenue, on which it is set to begin paying rent in July, TRD noted.
- Heard on the Street: CEO Nelson Mills: “Given the uncertain time, we thought it was prudent to pull that back a little bit. WeWork did come into that equation… We don’t think tenants will have the right to walk away from leases, but maybe some leases — who knows, there could be some tenants that don’t make it.”