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WeWork to cut ties with large Manhattan office it had leased - Business Insider

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WeWork is ditching a major Manhattan office it hasn't even moved into yet — and it's the first big step in a turnaround that's put its entire real-estate portfolio under review

it has leased for the past three years from WeWork at 88 University Place in Manhattan sometime after Labor Day.

WeWork's decision to exit 149 Madison Ave. marks one of the first major US spaces to be shed outright by the coworking company and a potentially ominous sign it could be close to culling other locations within its sprawling office footprint. "They're trying to meet the twin demands right now of rightsizing their business and containing their spend on operations locations and capital expenditures," said Jamie Hodari, the CEO of Industrious, a flexible-workspace firm that has appeared to better weather the downturn because it has focused on profit-sharing agreements with landlords and rather than committing to leases.

 

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