Atlanta’s Landlords Growing Cautious Of WeWork
“I think coworking is still a legitimate concept and platform,” said Bradley Fulkerson, Transwestern Managing Director. “But just given [WeWork’s] turmoil … I think it would give me some concern with them.”
According to a WeWork spokesperson, its current signed leases in Atlanta are still on track to open. The firm is also continuing to sign new lease agreements, but at a much slower pace than normal. Currently, WeWork takes up 760,000 square feet of office space in Metro Atlanta.
Despite its ongoing plans, many major office landlords are saying they will not work with WeWork in the future to avoid any potential risks.
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There are still some landlords that said they would consider WeWork as a tenant, but would be more mindful of the amount of money they would provide for tenant improvement allowances.
It is unknown what the average tenant improvement package for WeWork is in Atlanta, but coworking and its technological infrastructure has been a part of why costs for developers have risen over the past few years.
Going forward, while many landlords will likely move on from WeWork, its rapid growth may still benefit it in the long run as major urban markets are still in demand for office space.
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