According to The Information and Vox, WeWork’s occupancy rate is down to 79 percent in the third quarter of 2019. That is down from 84 percent in 2018.
The occupancy rate indicates how full WeWork locations are. If every desk at every location was filled, then they would be at 100% occupancy. The lower occupancy rate means they have more open spaces or fewer renters in some of their locations.
The lowered occupancy can partially be attributed to their 52 new locations that opened toward the end of 2019. Many of these locations were already under construction when WeWork’s troubles began, and they continued to open through the end of the year. Some think these new locations are just adding to their financial troubles.
Paul Leonard, a managing consultant at CoStar, told Vox, “They are always going to have to be looking for some strategic moves, but I don’t think they should be expanding at this point. They should be focusing on some locations and maybe moving out of others.”
“They should be focusing on some locations and maybe moving out of others.”
The Information reported last month that WeWork execs have been trying to get out of as many as 100 leases around the world. WeWork has not confirmed they are closing any locations.
WeWork has not announced which locations might be on the chopping block, but we will keep you up to date on new developments and any updates on whether WeWork Las Vegas is closing.
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