WeWork Reports Leasing Surge Of 4.3M SF In 2 Months
WeWork reports that it had its strongest two months for sales in April and May since before the coronavirus pandemic. Altogether, the coworking specialist says that gross desk sales reached 33,000 in April and 39,000 in May, which is the equivalent of about 4.3M SF of signed space.
The company also experienced positive net desk sales in all parts of the world in which it operates, with 97 out of 112 total markets increasing in occupancy from their low point during the pandemic.
WeWork reported 662,000 memberships in December 2019, a total seriously dented by the pandemic. By December 2020, membership was down to 490,000. As of the end of May 2021, WeWork had 505,000 memberships.
WeWork has also continued to adjust its real estate portfolio through building exits and renegotiated leases. Since March, WeWork says it has exited 17 locations and inked 51 amendments with landlords. The company expects to complete its portfolio efforts by the end of June.
WeWork’s global real estate portfolio includes 767 locations in 38 countries. Its space supports 947,000 work desks.
The surge in desk sales comes as workers are getting vaccinated and are emerging from pandemic-related workplace restrictions that kept many at home. Now they are trickling back to office space, at least part of the time.
In Manhattan, the total share of office-based employees expected to return by the end of September of this year is now at 62%, according to a Partnership of New York City survey. In March, the total expected to return was 45%. Only 12% of Manhattan employees are at the office currently.
It isn't clear how many workers will stay home how many days of the week on average in the future. Any move to offer hybrid work schedules on a massive scale could seriously disrupt demand for office space over the long run, including the flex space WeWork offers.