As WeWork and flex-space rivals stumble, 18 million square feet of space in NYC is at risk. Here's what that means for the real-estate market.
could cast millions of square feet onto the market at a time when tenant appetite for new space has been diminished by the crisis and the economic damage the pandemic has inflicted on commerce.
"If we were just talking pre-Covid, I would say that the impact of coworking vacancies on the market would be huge," said Jeffrey Peck, a vice chairman at the real-estate services firm Savills. "Post-Covid, it could be percentage points on top of what we already believe is going to be an even bigger number."with WeWork initiating another round of layoffs to cut costs
The availability rate in Manhattan, a calculation that includes present vacancy and spaces that are expected to become empty in the coming months, was 11.8% at the end of the first quarter, according to Newmark data. Average asking rents were a record $81.
"As part of our plan to seek profitable growth, we are conducting an in-depth review of operations and assets globally in order to rightsize the business and optimize our real estate portfolio," a WeWork spokeswoman, Nicole Sizemore, said in a statement. "As we work through this process, we are working with industry partners where appropriate."WeWork and its peers played a large role in pushing up the office market in recent years.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WeWork cuts begin as the company faces coronavirus crisis - Business InsiderOther venture-backed competitors, including Knotel, Industrious, and Convene, have laid off hundreds as the pandemic drives down demand for office.
Read more »
WeWork Unraveling Continues With New Layoff RoundWeWork laid off more workers on Thursday—the latest in a series of hits for the once-promising shared-office business
Read more »
WeWork cuts begin as the company faces coronavirus crisis - Business InsiderOther venture-backed competitors, including Knotel, Industrious, and Convene, have laid off hundreds as the pandemic drives down demand for office.
Read more »
How coronavirus is changing influencer marketing, creator industry - Business InsiderBusiness Insider spoke to influencer-marketing professionals across the industry to learn how they're adjusting during the coronavirus pandemic.
Read more »
Dispensed Business Insider's weekly healthcare newsletter May 1 - Business InsiderWelcome to Dispensed, BI's weekly healthcare newsletter. This week, the TLDR on remdesivir, a promising experimental coronavirus treatment.
Read more »