WeWork Bets on Slow Pandemic Recovery to Cuts Prices across the U.S by 10%

WeWork Bets on Slow Pandemic Recovery to Cuts Prices across the U.S by 10%

WeWork Co. reduced the price of most rental units in the U.S in early November and January by about 10%, according to Bloomberg.  The company slashed prices by as much as 25% in some locations.

  • The price cuts suggest a slow post-pandemic recovery for office rentals.
  • Office rental prices across the U.S have been declining on depressed demand as fewer than 20% of office workers returned to their desks at the end of last year across major American cities.
  • Analysts expect landlord’s asking prices to drop 7% by early 2022 before rebounding
  • WeWork started plans to cut costs before the coronavirus and its new leadership, after ouster of CEO Adam Neumann in 2019, sold off and shut down side businesses. 
  • The company reported shrinking quarterly revenues last year, despite keeping locations largely open during the stay-at-home orders in many cities. 

WeWork’s recent price cuts ranged from 5% to 25%

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