WeWork, Cushman negotiating $150M partnership

Cushman & Wakefield would invest in WeWork SPAC to help office tenants create flexible workspaces

National /
Aug.August 09, 2021 10:10 AM
WeWork CEO Sandeep Mathrani and Cushman CEO Brett White (WeWork, White by Louise-Haywood Schiefer)

WeWork CEO Sandeep Mathrani and Cushman CEO Brett White (WeWork, White by Louise-Haywood Schiefer)

At its greatest heights, WeWork once considered acquiring Cushman & Wakefield. Now, the co-working firm is considering a cash infusion from the commercial real estate giant ahead of a planned SPAC deal later this year.

WeWork and Cushman are in talks about forming a $150 million partnership aimed at helping office tenants adapt to remote work and flexible spaces, the Wall Street Journal reported. Cushman would invest the $150 million in the coming merger between WeWork and BowX Acquisition, a SPAC deal that would finally take the co-working firm public.

Landlords and investors are desperate to try and bring back workers as soon as possible and are willing to invest in amenities to do so. Occupancy rates have been slow to recover as the Delta variant pushes back employers’ plans to bring workers back to the office.

Similar deals have already happened this year. CBRE purchased a 35 percent stake in Industrious, a direct competitor to WeWork, while Newmark has received permission to buy Knotel, which was in bankruptcy.

According to the Journal, Cushman believes WeWork’s technology and “reputation for hip spaces” will be a boost as companies navigate a return to the office after the pandemic, a return that is growing increasingly fragile due to a rise in Covid cases.

WeWork was recently revealed to have considered acquiring Cushman while Adam Neumann was still its CEO. That interest, however, came before the company’s IPO fell apart in late 2019, leading to a change in leadership and scores of employees being laid off.

WeWork’s upcoming SPAC merger is expected to value the company at $9 billion, including debt.

[WSJ] — Holden Walter-Warner





    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
    The Centre at Purchase at 1, 2, 3, 4 Manhattanville Road with George Comfort & Sons CEO Peter Duncan (George Comfort & Sons)
    Westchester office park owned by George Comfort & Sons slated for auction
    Westchester office park owned by George Comfort & Sons slated for auction
    Attorney General Letitia James and A&E Real Estate CEO James Patchett (Getty, iStock)
    A&E pays just $510K in lead-paint settlement
    A&E pays just $510K in lead-paint settlement
    Seeding from recapitalization of 25 health care properties
    KKR, Cornerstone in $1B JV to develop health care facilities
    KKR, Cornerstone in $1B JV to develop health care facilities
    The Broadway location of Halloween Adventure (Facebook via New York Costumes / Halloween Adventure)
    Halloween Adventure to vacate East Village home as retail condo hits market
    Halloween Adventure to vacate East Village home as retail condo hits market
    Bluerock Residential CEO Robert Ramin Kamfar (Owler)
    NY-based multifamily REIT Bluerock explores sale
    NY-based multifamily REIT Bluerock explores sale
    arrow_forward_ios

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

    Loading...