Green Street

 

 

Financial Times: WeWork resumes lease signings but at much slowed pace

According to Financial Times,

WeWork has resumed signing a limited number of new leases with landlords after a halt this week sent shockwaves through the global real estate market.

A deal in Tokyo on Friday came hours after senior executives at a Thursday meeting in New York ended a suspension of new lease signings, according to people briefed on the matter. The halt had been in place since Monday.

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Property owners have been braced for the possibility that WeWork could slash its growth since its initial public offering collapsed. Two landlords with large WeWork sites said they would not make further deals with the group until the company had stabilised. “No one will take on more at the moment,” one landlord said. “They need to calm down and show that the business model works.”

Peter Papadakos, managing director at research firm Green Street Advisors in London, said landlords were concerned about building values. “We hear that there is a repricing of risk with regard to buildings dominated by WeWork,” he said.

Among those deals the company still wants to push forward is one to lease the former headquarters of Goldman Sachs on London’s Fleet Street, according to people briefed on the deal.

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