WeWork Pulling Out Of Plans For Multiple Large NYC Leases

120 Broadway In Manhattan

Coworking giant WeWork has canceled or halted negotiations for multiple lease deals in the city, as it scrambles to right the ship after its attempt to go public this summer.

A deal to take at least 50K SF at 120 Broadway is off the table, as is a deal for hundreds of thousands of square feet at 250 Broadway, Crain’s New York Business reports. At 250 Broadway, WeWork would have filled some of the hole left when the New York City Housing Authority moves out this year.

WeWork has also recently canned lease plans at 5 Times Square and 340 Madison Ave., according to Crain's, and a potential 100K SF lease at 63 Madison Ave. is on ice for now, though not yet canceled.

WeWork wouldn’t discuss specific leases and said it remains focused on “strategic expansion and profitability” and would be leasing at a slower pace over the next few quarters.

Late last month, WeWork announced a massive deal for more than 360K SF at 437 Madison Ave., but Crain's reports the deal only went through because building owner William Kaufman Organization asked for six months rent up front.

It is not just New York City where deals are in jeopardy. In Boston, two landlords have pulled the plug on negotiations, Bisnow reported this week.

WeWork has weathered some serious blows in the last few months. Its highly anticipated initial public offering went south last month, its $47B private valuation was slashed to somewhere less than $20B and co-founder Adam Neumann was forced to resign as CEO.

Across the country, landlords and brokers now see the company with much more skepticism. In a recent Bisnow poll, more than half of the 500-plus respondents said they believe WeWork will eventually file for bankruptcy.

Continue reading this story with a free account

Log in or register
Related Topics: Coworking , WeWork IPO , WeWork NYC
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

NYC Lawmakers Consider Mandating Lease Extensions For Retailers

NYC Pushes To Use Opportunity Zone 2.0 For Mamdani's Housing Goals

Where Capital Meets Opportunity: Navigating The Next Wave Of CRE Financing At Bisnow’s Event On Sept. 30

Discussing Strategic Capital Stack Structuring At Bisnow's Sept. 30 National Finance Event

Bally's Lines Up $560M Loan For Bronx Casino: The N.Y. Deal Sheet

Data Center Spills 5,000 Gallons Of Fuel Into New Jersey River

Historic Brooklyn Hotel To Be Turned Into Ritz-Carlton-Branded Condos

Taconic Partners Sheds Another NYC Life Sciences Property

Oxford Properties' U.S. Investment Head On Why It's Buying Office Again — And Where

25 Years After 9/11, Lower Manhattan Is Finally Firing On All Cylinders

Tishman Speyer Seeks $92M Tax Break For Next Hudson Yards Office Tower

SL Green Selling SoHo Building For $226M