WeWork Inc. is closing two key coworking spaces in Singapore, signaling ongoing difficulties in one of its most important markets.
The company has shut down its space on the 17th to 20th floors of the Manulife Tower at 8 Cross Street, a prime spot in the city’s financial district, according to the Hindustan Times.
Additionally, another location at 83 Clemenceau Avenue, a building near the popular Clarke Quay area, will close next year.
A WeWork spokesperson confirmed that while Singapore remains a priority market for the company, it made the “difficult decision” not to renew leases at these two locations. The company continues to operate in 12 other buildings across Singapore, emphasizing its commitment to the market.
The closures come as Singapore’s office vacancy rates have risen to their highest levels in over two years, according to property consultancy Jones Lang LaSalle.
Many businesses are consolidating office space to reduce costs, which has impacted demand for coworking spaces like those offered by WeWork. For example, earlier this year, Chinese tech giant Tencent vacated its WeWork office at 30 Raffles Place.
Despite these challenges, Singapore has been a bright spot for WeWork, which is still recovering from its bankruptcy exit in May.
