Despite free-flowing kombucha, WeWork tenants feel unease
NEW YORK — The kombucha and beer on tap flow freely. The milk-and-cookie happy hours, yoga sessions and waffle Mondays continue as usual.
WeWork’s stock market fiasco has yet to reverberate much for its more than 600,000 tenants, spread across a global empire of gracefully designed co-working offices. But beneath the work-and-play cheer, there’s unease as WeWork embarks on a painful restructuring that will include thousands of layoffs as early as this week.
WeWork is slashing the lavish spending that fueled the office-sharing company’s breakneck growth and contributed to unsustainable losses that ultimately turned off Wall Street investors, forcing it to shelve its initial public offering.
Bill Baldwin, managing principle of the global real estate advisory firm Cresa, said that for the moment, he prefers not to direct clients to WeWork, saying he is not convinced the company can avoid defaulting on leases
“That’s a pretty scary situation to put a client of ours in,” said Baldwin, whose firm represents occupiers in real estate transactions.