WeWork opened 400 locations in 3 years. In some cases, it used deep discounts to convince existing customers to relocate to help fill them.

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WeWork opened 400 locations in 3 years. In some cases, it used deep discounts to convince existing customers to relocate to help fill them.
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WeWork only discloses occupancy levels at new buildings. To help fill them up, it offered promotions to members in its older buildings, sources told us.

that it expects the pace of entering new lease agreements to slow as it pursues "more strategic growth."WeWork resorted to particularly generous promotions to land tenants in new locations

In other cases, WeWork sales reps reached out to companies in existing locations that were on discounted deals that were set to expire, said the commercial real estate industry executive. It agreed to extend those deals if the companies agreed to relocate to new locations with low occupancy levels, the executive said.

Traditional landlords sometimes take similar steps when they open new buildings or locations, said Jeff Langbaum, a real-estate analyst with Bloomberg Intelligence. Because of that, there's no real economic advantage for WeWork to shift tenants from older to newer facilities, said Langbaum. The only benefit it would seem to get is to show higher occupancy levels at its newer sites, he said.

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