IBM to leave WeWork’s 88 University Place

The Fortune 500 company’s departure is latest blow to the flex-office giant

TRD New York /
May.May 29, 2020 09:25 AM
IBM CEO Arvind Krishnam and 88 University Place (Google  Maps, IBM)

IBM CEO Arvind Krishnam and 88 University Place (Google  Maps, IBM)

IBM is pulling the plug on a large office space it leases from WeWork.

The technology giant will leave the 70,000-square-foot space it leases from WeWork at 88 University Place sometime around Labor Day, Business Insider reported. IBM will continue to lease office space from WeWork in Chicago and London.

When the two parties struck a deal in 2017, it marked a turning point for WeWork, which was trying to expand past the market for freelancers and into the market for corporate clients.

But in recent months, WeWork has faced tensions with its renters, who have called the company’s continued charging of fees during the pandemic “unlawful.” The company has said it must keep offices open for those of its users considered essential. Earlier this month, WeWork’s valuation fell to $2.9 billion, a far cry from $47 billion a year ago.

Now, as remote work grows in appeal, major companies are reevaluating their physical footprints — leading to growing concerns about the broader office sector. Mark Zuckerburg announced this week that Facebook estimates that half its workforce could transition to remote work over the next decade. Others, including Twitter and Shopify, have signalled they would move toward working from home permanently.

A shift toward remote working could also upend business models such as WeWork’s, which depended on the appeal of a reimagined in-person office culture. [Business Insider] — Georgia Kromrei 


Related Articles

arrow_forward_ios
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
WeWork CEO Adam Neumann (Credit: Getty Images and iStock)

WeWork’s side businesses are fizzling

WeWork’s side businesses are fizzling
Sarah Pontius (Credit: Union College)

Another head rolls at WeWork

Another head rolls at WeWork
MGM CEO William Hornbuckle and the Bellagio resort

MGM, desperate for cash, launches “Work From Vegas” program

MGM, desperate for cash, launches “Work From Vegas” program
Invitation Homes CEO Dallas Tanner (iStock; Tanner via Invitation Homes)

Invitation Homes may double its single-family portfolio

Invitation Homes may double its single-family portfolio
(Google Maps)

National retail chains paid 80% of July rent, a Covid high

National retail chains paid 80% of July rent, a Covid high
Retailers are rejecting leases amid bankruptcy filings, putting a strain on landlords. (iStock; Pixabay)

Retailers rejecting leases amid bankruptcy could bring “tsunami” for landlords

Retailers rejecting leases amid bankruptcy could bring “tsunami” for landlords
(iStock)

Half empty or half full? Hotel occupancy rate nears 50%

Half empty or half full? Hotel occupancy rate nears 50%
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...