Google has backed out of a deal to take up space at one of WeWork’s Toronto locations and instead has opted to sign a deal with IWG.
Google signed a deal to take up 24,000 square feet of space at IWG’s Spaces location in Royal Bank Plaza in Toronto’s financial district.
WeWork had reportedly been in talks to rent out space to Google at its planned location on Bay Street. While it is unclear why the deal was scrapped, this is one of many obstacles WeWork that has been thrown at the coworking company since it canceled its initial public offering.
WeWork’s struggles have paved the way for other flexible office competitors, such as IWG, to market themselves as a more reliable operator.
“You have to separate the issues at WeWork from the coworking business model,” said Tamara Lawson, chief financial officer at QuadReal Property Group Ltd.