Yes, everybody’s worried about WeWork’s problems and how they might rock the commercial leasing scene.
Realty Check noted back on Sept. 2 that industry players were “sweating it out” as the company readied its since-aborted IPO. After all, WeWork, owned by We Co., is not only the city’s largest tenant with over five million square feet, but as its main business is subleasing all that space to other companies one of its largest landlords.
Yes, WeWork has been in unreported talks with some owners to take even more space including, for example, at SJP Properties’ 470 Park Ave.
So. A bigger question mark might hang over the former Lord & Taylor building, which WeWork owns but has yet to lease to a tenant.
Speculation that the situation threatens the market’s overall health seem overblown.
For one thing, most landlords who leased to WeWork were aware of the risks and took steps not to be over-exposed.
What’s more, a Manhattan market with a tolerable 10.5 percent availability rate could withstand any WeWork fallout.