But the company couldn’t escape weaknesses in its business model, which was always vulnerable to any softening in the office market. The vast majority of WeWork’s leases were signed in 2018 and 2019, when rents peaked before the pandemic. Instead, work-from-home trends ossified, companies cut back on office space and vacancies rose. As the office-market downturn dragged on, landlords, desperate to fill their buildings, began listing office space under shorter-term leases, competing directly with WeWork. Silver, who advises companies on their office space, said more landlords now offer furnished space under one- or two-year leases—virtually unheard of before the pandemic.

Source: Wall Street Journal November 02, 2023 16:46 UTC