WeWork has enlisted the help of major commercial real estate brokerage companies CBRE and JLL to help fill in its huge vacancies.
This move highlights the challenges that many flexible workspace companies are facing as people opt to work from home for the time being.
For its largest market in New York City, WeWork will have the help from JLL to market and lease large vacancies including its workspaces on 620 Avenue of the Americas and 437 Madison Avenue. Currently, the company is advertising almost 2 million square feet of vacancy for its New York portfolio, out of the 9 million square feet it occupies in the city.
Meanwhile, CBRE will aid in leasing spaces part of the company’s Los Angeles market. Reports have also indicated that WeWork is searching for other brokerage firms to help with four other locations in New York that have not been specified, as well as its markets in Boston, Miami and Seattle.
Hiring real estate services companies to handle marketing and negotiations is not out of the ordinary, but WeWork has long taken pride in doing this on their own to boost its brand.
“There’s no question the supply is increasing and there’s no question that demand is slowing down, but in places like New York City, there’s always tenants in the market,” said Peter Riguardi, the Tri-state area president and chairman of JLL.
