WeWork hires help to fill vast empty spaces from NYC to LA

Beleaguered co-working giant — which traditionally handled leasing in-house — tapped JLL and CBRE for its millions of square feet now vacant

New York /
Jul.July 29, 2020 12:45 PM
WeWork CEO Sandeep Mathrani (Wikipedia Commons)

WeWork CEO Sandeep Mathrani (Wikipedia Commons)

WeWork has hired JLL and CBRE to help fill millions of square feet now vacant, in New York City and Los Angeles, as the co-working giant continues to get pummeled by the effects of the coronavirus.

The company is also shopping for brokerages to help lease spaces in Miami, Boston and Seattle, according to Business Insider.

JLL is marketing WeWork spaces at seven buildings in Manhattan and a WeWork spokesperson said the company plans to hire one or more brokerages to help lease four other spaces in the city. The company has an estimated 2 million square feet of available space in New York, or around 20 percent of its portfolio.

JLL is marketing 437 Madison Avenue in New York (Google Maps)

JLL is marketing 437 Madison Avenue in New York (Google Maps)

CBRE is marketing four WeWork locations in L.A., whose commercial leasing has taken a major hit in recent months. A record 5 million square feet of sublease space hit the market in the second quarter — a five-fold increase from the first quarter.

WeWork has been rethinking its long-term strategy since its disastrous attempt at an IPO last fall and subsequent leadership changes. The pandemic’s impact, which has led to a work-from-home revolution, has only worsened the situation. Last month the company pulled out of a planned 115,000-square-foot lease at 149 Madison Avenue in Manhattan.

It’s also doubled down on its shift from smaller independent tenants that were long its base clientele toward larger “enterprise” tenants.

The second quarter marked the first time that companies with more than 500 employees accounted for half of WeWork’s core revenue outside China and India. [BI] — Dennis Lynch


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
RXR CEO Scott Rechler and 620 Sixth Avenue (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images, Beyond My Ken, CC BY-SA 4.0 - via Wikimedia Commons)
RXR sues insurers over infectious disease coverage
RXR sues insurers over infectious disease coverage
WeWork, Co-working,
Good news for WeWork: It only lost $635M last quarter
Good news for WeWork: It only lost $635M last quarter
Moderna's Tracey Franklin and St. Regis Residences Boston (Getty, Moderna)
Boston’s luxury boom comes courtesy of Moderna
Boston’s luxury boom comes courtesy of Moderna
Adam Neumann and 227 Honey Hollow Road in Bedford Hills (Getty, Compass)
Adam Neumann lists (another) Westchester estate
Adam Neumann lists (another) Westchester estate
New York City Comptroller Brad Lander (Office of New York City Comptroller Brad Lander, iStock)
Office occupancy in New York finally hits 40%
Office occupancy in New York finally hits 40%
arrow_forward_ios

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

Loading...