NYC’s real estate market has WeWork’s survival in ‘substantial doubt’

Make your contribution now and help Gothamist thrive in 2023.The office space-sharing company WeWork said they have "substantial doubt" they can stay in business over the next 12 months., the company interim CEO David Tolley said they are suffering along with the entire commercial real estate industry.

New York’s commercial real estate market has softened significantly since the pandemic. According to a secondfrom the commercial real estate firm Avison Young, Manhattan’s vacancy rate stood at 20% with 40% fewer leases being signed compared to before the pandemic. “WeWork was a great idea, but a terrible business,” said Jordan Barowitz, a real estate consultant. “The concept of co-working has caught on, and WeWork now has dozens of competitors. If WeWork goes away, the people who work out of their spaces will find other places to work.”

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