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WeWork’s Lawsuits Reveal Cracks In The Coworking Model

Aayat AlibyAayat Ali
July 2, 2021
in News
Reading Time: 1 min read
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WeWork’s Lawsuits Reveal Cracks In The Coworking Model

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WeWork is in the midst of multiple lawsuits in New York and Boston after the coworking firm chiseled down its footprint over the past year in an effort to hone in on its core business.

In May, Oxford Properties Group sued WeWork for $1.8 million after the coworking operator closed its location on Atlantic Avenue in Boston.

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Additionally, Walter & Samuels claimed that the company had defaulted on its lease at 214 29th Street in New York City and sued the company for $37 million in April. The landlord stated that WeWork failed to follow through with a deal that it would keep certain tenants in the Chelsea building.

“Coworking companies as tenants present some unique challenges for office property landlords,” said Matthew Lynch, partner at Nixon Peabody LLP. “These challenges were not as evident prior to the pandemic and the prevalence of remote working. But these WeWork cases as well as legal actions brought by landlords against other coworking companies have exposed these challenges and are likely a cause for changes to approach going forward.”

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Aayat Ali

Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces.

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