Another WeWork location will close its doors as the company attempts to right-size its portfolio.
In 2019, the coworking firm signed a 137,000 square foot lease for a space in Washington D.C.’s Mount Vernon Triangle neighborhood. As of this month, the location has been removed from the company’s website.
Weeks ago, WeWork revealed it would close 40 locations across the country as it works to “optimize and enhance” its real estate portfolio, according to CEO Sandeep Mathrani.
“These locations… are all in the United States and are those that don’t meet our design criteria have obsolescence or there’s an oversupply in the market,” Mathrani said in a statement following the firm’s third-quarter earnings call. “Our members in these locations have all been notified and most have already been relocated to higher quality WeWork assets.”
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Despite demand for coworking seeing an uptick in the era of hybrid work, the threat of a recession is likely driving WeWork and other real estate players to reconsider and downsize their footprint to alleviate any additional losses.
