WeWork paid so much for the former Lord & Taylor building off Bryant Park, it can no longer afford to move in, The Post has learned.
Officials within WeWork’s real estate leasing business have told employees in recent days that they are ditching plans to make the former department store their headquarters, a source with direct knowledge told The Post.
Staffers have chalked up the change-up to the stiff lease the office-leasing company agreed to pay for the building part owned by its ex chief executive, Adam Neumann.
Soon after a group of investors, including Neumann, bought the building for $850 million earlier this year, WeWork signed a long-term lease at a stiff $105 per square foot.
As The Post has reported, that’s well above the $80-a-square-foot that’s more typical of buildings in the area.
“They know it makes no sense,” the source said.
WeWork, which booted Neumann last month following a scuttled IPO, will now seek to sublease the building at 424 Fifth Avenue, the source said.