Office rents in London are set to fall because Wework’s postponed stock market float will force it to slow down its aggressive expansion in the city, according to new research. Flexible office-space companies such as Wework push up rents by paying more for leases in exchange for multi-year, rent-free deals, which helped them to fuel their growth, Jefferies said. The investment bank suggested that these elevated rents “are about to deflate”, given Wework’s woes. The troubles facing Wework deepened yesterday as it emerged that short bets against the company’s debt have hit a record high. Wework, recently rebranded as The We Company, buys long leases on offices and subdivides to create co-working spaces or short-term rentals for small businesses.

Source: The Times October 03, 2019 23:03 UTC