In The Loop: WeWork Drops Lawsuit, IWG’s Revenue Falls, And Another Knotel Lawsuit

Despite the fat that the company’s revenue fell during Q2, IWG remains optimistic about the future.

WeWork Drops Lawsuit Against The Meridian Group

Bizjournals reported this week that “WeWork has agreed to drop its lawsuit against The Meridian Group over nearly $7 million in tenant improvement costs tied to the coworking space provider’s lease at 700 K St. NW in the District.” According to the report, both companies filed a stipulation of dismissal on October 30th; however, the stipulations did not disclose the terms of the settlement. The lawsuit was filed about two months ago, in which the coworking company claimed the landlord refused to pay around $6.8 million in construction and improvement costs. The coworking company filed a similar lawsuit against a landlord in Boston. 

IWG’s Revenue Falls 10.2%

ET Realty reported this week that International Workplace Group’s (IWG) revenue fell 10.2% to $754.38 million in Q2. The company identified the pandemic and customer churn as the culprit for the fall in revenue. Still, the company remains optimistic about the future as it claims that  “it has started to see some improvement in its sales activity and highlighted increasing interest in flexible working options.” The company is reportedly seeing increased demand for flexible space suburban locations and small private offices that can accommodate 2 people.

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New Lawsuit Against Knotel

The Real Deal reported this week that yet another landlord is suing Knotel over unpaid rent. According to reports, the flexible workspace company owes nearly $900,000 in unpaid rent, including six months of rent free that was part of its initial lease agreement. The lawsuit, filed by Northwind Group, claims that “the flex-office company stopped paying rent on its office space at 40 Wooster Street in March.” As a result, the landlord has withdrawn Knotel’s $205,250 security deposit and is asking for a judgement of $898,310 against the flexible workspace company. 

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