WeWork isn’t dead yet, hoping to ride post-pandemic interest in flexible workspace to a comeback story for the ages. There are still cuts to be made, however.
WeWork continues to reduce its property inventory, announcing the latest in a string of closures since the beginning of the pandemic, but the news for the infamous office sharing company isn’t all bad.
“In a cost-cutting move, WeWork plans to close 40 U.S. underperforming shared office locations while seeking to capitalize on growing global demand for flexible workplaces in a bid to turn profitable,” according to an article by Andria Cheng for CoStar News. The company expects to contribute $140 million to its bottom line by closing the offices, according to Cheng.
“The closings add to over 240 full-lease exits and 480 lease amendments that WeWork had taken from the beginning of 2020 through the third quarter as the high-profile company focused on increasing profitability,” adds Cheng. On the other hand, the company is planning on opening 20 new locations globally this year, and the net impact of the recent closures only slightly lowers the company’s inventory compared to a year ago.
There are other signs that the company’s fortunes are headed in a more positive direction, according to the article, including a slowing rate of losses and increasing occupancy rates. Occupancy at the company’s consolidated locations are at 71 percent—up from 56 percent a year ago and the highest rate in two years.
While the media paid plenty of attention to the fall WeWork in 2019 (articles titled “the rise and fall of WeWork” as plentiful) and the company’s decline inspired a 2022 mini-series aired on Hulu, less coverage has been devoted to the pandemic’s surprisingly positive effects on the company. Here is sprinkling of media coverage tracking the narrative arc of the company in recent years.
- How to Explain the Rise and Fall of WeWork? (The New York Times; July 18, 2019)
- The Fall of WeWork: How a Startup Darling Came Unglued (Wall Street Journal; October 24, 2019)
- The Rise and Fall of WeWork (The New Yorker; November 6, 2019)
- Why WeWork went wrong (The Guardian, December 20, 2019)
- How WeWork Got Away With Spectacular Failure (New Republic; November 24, 2020)
- WeWork imploded in 2019. The pandemic brought it back to life. (NBC News; May 24, 2021)
More details on the current state of WeWork can be read at the CoStar article below.
Read the full story: WeWork To Shut Down 40 US Underperforming Locations
Office Demand in Seattle Suddenly Back and Bigger Than Ever
The fortunes of commercial real estate in Seattle have completely reversed since February, according to a new analysis.
Big Tech Bets on the Big Apple
Amidst the uncertainty of the pandemic, the four biggest U.S. technology companies have leased or bought enough office space in New York City for 22,000 employees.
Post-Pandemic Home Building Trends: More Bedrooms, Smaller Homes
U.S. homes are adding bedrooms while getting smaller, according to two seemingly contradictory articles published on the same day from different data sources earlier this month.
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
The state-sanctioned urbicide of Austin
People don’t kill cities. Freeways do.
Colorado’s Largest Data Center Could Rise Next to Homes — Without a Public Hearing
The proposed campus would consume 11 times the power of Denver International Airport; as it has across the country, opposition mounts.
Judges permit Denver to divert 77,000 acre feet from the Colorado River for reservoir expansion
Overuse and climate change have caused the Colorado River’s water levels to plummet.
Amtrak, CN end decades-long dispute with eight-year agreement
The new operating agreement establishes an updated framework for the companies to work together, including processes to resolve disputes.
Raised interest rates may kill financially vulnerable construction projects
The chief economist at ConstructConnect warns that if construction project owners are negatively impacted by the raised rates, it could result in delayed payments to contractors.
FREE Course: Walkable City 1: Why Walkability?
After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.
Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold
The course focuses on the opportunities and imperatives that shape reinvention of mall sites.
KFH Group Inc.
Greater Baltimore Committee
Eagle County Government
The Architects Foundation
University of Cincinnati Online
The Pocatello Development Authority
The Urban Renewal Agency of the City of Pocatello