Financial Times: The end of the WeWork boom rattles property markets
According to Financial Times,
From the Italian Renaissance-style Lord & Taylor building on New York’s Fifth Avenue to the postmodernist landmark One Poultry in London, WeWork has swept up office space at an unprecedented rate since opening its first location in Manhattan less than a decade ago.
Peter Papadakos, a managing director at the research company Green Street Advisors, noted: “We have only seen the benefits from the growth in demand from flexible and co-working operators. What are still to come are the negative repercussions.”
Last week rating agency Fitch downgraded WeWork’s credit rating to CCC+, a level at which “default is a real possibility”. It said “the risk that the company is unable to restructure itself successfully has increased materially”.
“If I was thinking of moving into a WeWork site today, I would actually have second thoughts because is WeWork going to be around in three years?” said Mr Papadakos.
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