Since the pandemic began, WeWork has been losing many of the smaller tenants, particularly venture-funded startups, that made up a big share of its customers. CEO Sandeep Mathrani told the Wall Street Journal that he’s looking to fill these vacancies by trying to revive its business with larger, more-traditional corporate clients.
- The real story: WeWork’s availability rate in New York City is more than 20 percent. The firm has 1.9 million square feet of space that’s either available or will become so in the coming months.
- In-house WeWork brokerage seems non-existent: The co-working company recently hired JLL to help fill in its huge vacancies in the city, which includes its locations at 620 Avenue of the Americas and 437 Madison Avenue. WeWork also hired CBRE to assist in leasing its available spaces in the Los Angeles market.
- Worth Noting: WeWork’s interest in corporate clients isn’t new. The company has for years courted large corporations and last year launched a private-office line for midsize firms. Mathrani pitches companies on flexibility, or the ability to shrink or expand offices on short notice and without a long-term commitment. [WSJ]