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New York 2019 Q3 Office Market Report

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The We Company's IPO fiasco creates market uncertainty

The We Company filed an S-1 on August 14th, 2019 as New York City’s largest occupier valued at $47 billion. Less than 60 days later, WeWork has all but stopped signing leases while undertaking a massive organizational restructure and pursuing more “strategic” growth. WeWork’s turmoil will cast a shadow of skepticism over the market in the fourth quarter as owners re-evaluate WeWork’s tenancy, credit, and contracts. This may create opportunity as unfunded or canceled WeWork expansions become available for traditional occupiers. Prior to the restructure, WeWork leased an additional 500,000 square feet (sf) during the third quarter, occupying nearly 8.0 million square feet (msf) in total, and controlling over 58% of the flexible office inventory. Stay tuned for an upcoming scenario analysis that will evaluate the impact of a potential WeWork default on the New York City market. 

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