Snapshots
WeWork’s share of inventory has declined in every major market
November 30, 2023
Contributors:
- Elena Lanning
- WeWork filed for Chapter 11 bankruptcy protection on November 6, 2023, a move that has expedited the closure of additional locations as the company evaluates the deal structures and operating performance of centers throughout its North America portfolio and uses the bankruptcy process to selectively reject leases.
- Even before the bankruptcy filing, WeWork had been aggressively trimming its footprint. WeWork has contracted by an average of 34% across every major market it occupies in the U.S., and has fallen to 0.6% of inventory nationally.
- WeWork’s downsizing as a percent of inventory has been most acute in Seattle (67%), followed by San Francisco (50%), while WeWork’s footprint decreased by the smallest margin in Miami (14%).
- WeWork has already exited over 250 leases and restructured hundreds more over the past few years, which has resulted in a reduction of $12.7 billion of fixed rent payments.
- WeWork’s management has laid out a vision for the future, which includes reducing costs via additional center closures, cutting overhead and limiting new capital expenditures, and seeking additional capital via issuance of debt and/or equity securities and/or asset sales.
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