The Washington Post
Wework occupancy back to pre-covid level
Wework said offices were 72 percent full at the end of the second quarter, matching the occupancy rate from before the coronavirus pandemic in late 2019 for the first time.
Wework’s occupancy rate — the percentage of its total desks that were rented out — dropped dramatically during the first year of the pandemic, when many tenants canceled their rental contracts and decided to work from home. That metric hit its low point of 46 percent a year later.
The company pitched a turnaround story when it went public last year in a blank-check merger. Wework’s buildings have slowly filled back up. Wework management has maintained that more customers are drawn to its flexible office space offering as they attempt to figure out longterm real estate strategies in a new world of hybrid and remote work. It now has 62,000 subscriptions to its All-access pass, a product that allows customers to book space for shorter increments of time.
Occupancy aside, the secondquarter performance was less rosy. The co-working company had $815 million in sales, missing an average of analysts’ estimates of $821 million.
Wework continues to lose money and is narrowing that gap more slowly than predicted: Last quarter it reported a $635 million loss when analysts expected $479 million. Its loss in the second quarter is wider than the first quarter’s $504 million.