New York City office landlords that have a track record of mitigating problems by filling their buildings with multiple tenants are breaking the rules for WeWork . The flexible office tenant has a total of five million sq ft in the city and occupies the entire rentable office space in at least five buildings . In a dozen or more other buildings , it occupies more than 90 % of the space , according to The Real Deal . Buildings with high WeWork occupancies trade at higher capitalisation rates than the overall market rate for similar properties according to a 2018 Cushman & Wakefield study . WeWork guarantees just 11 % of its overall lease obligations , the Wall Street Journal reported in June . “But you’re going to sell it at a higher cap rate. Some of the city ’s largest landlords have already begun to demand stronger guarantees from the company .
New York City office landlords that have a track record of mitigating problems by filling their buildings with multiple tenants are breaking the rules for WeWork . The flexible office tenant has a total of five million sq ft in the city and occupies the entire rentable office space in at least five buildings . In a dozen or more other buildings , it occupies more than 90 % of the space , according to The Real Deal . Buildings with high WeWork occupancies trade at higher capitalisation rates than the overall market rate for similar properties according to a 2018 Cushman & Wakefield study . WeWork guarantees just 11 % of its overall lease obligations , the Wall Street Journal reported in June . Some of the city ’s largest landlords have already begun to demand stronger guarantees from the company .