Of course, this is good news for just the coworking firm, but it could have major implications for the office market as a whole.
The deal values WeWork at around $9 billion, giving the company an influx of capital at a time when it has been cutting down on its office footprint as it attempts to remedy its infamous reputation of burning through cash.
Moving forward, a source has said that WeWork will continue to rightsize, meaning more exits are on the horizon. However, it is also looking at growing in specific locations dependent on market demand.
Experts see this as good news for landlords in the short term, because this means that WeWork actually has the finances to pay its current lease obligations.
The access to capital from going public will help the coworking operator grow, but Dror Poleg, co-chair of the Urban Land Institute Technology and Innovation Council, is not anticipating it to return to its 2018 and 2019 leasing pace.
“I am hopeful they will use this new funding to better serve the needs of their members because there is a demand for flexibility, and coworking will play an important role in the return to office,” said Jon Glass, Corporate Managing Director at Savills. “A financially solvent WeWork that learns from its prior mistakes will bolster key markets around the world, which is a benefit to everyone.”
