WeWork has a massive footprint in London. Its bankruptcy could shake up the city's office market

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The company said that its restructuring is limited to WeWork’s locations in the U.S. and Canada.

WeWork, which was valued at $47 billion at the height of its rise in 2019, filed for Chapter 11 bankruptcy Monday.But uncertainty remains for WeWork's operations in London and the international offices, as property groups debate whether to end their lease agreements.

According to CoStar, the commercial real estate data company, the company has 36 offices in London, spanning more than 2.89 million square feet. The largest single landlord with exposure to WeWork's financial troubles is Almacantar's 290,000-square-foot Southbank West in Waterloo, CoStar said.The most exposed London submarket is City Core North, where WeWork occupies 684,000 square feet.Deepak Tailor, CEO of LatestFreeStuff, a startup that offers customers freebies online, said that he doesn't know what will happen with the office building that his firm is currently occupying in Tower Bridge.

Tailor has been at his WeWork building for eight years, he said, and found it accommodating as a space to work from, with the office offering free beers on tap. The company tried and failed to go public five years ago, and has since been heavily affected by the Covid-19 pandemic, which caused further pain as many companies abruptly ended their leases.The company has said its spaces remain open and operational, and that it will continue to provide members with its co-working experiences.Helical, the property investment firm, recently revealed it had forfeited its lease to WeWork on six floors at The Bower office development in London.

 

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