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%