Chicago office landlords that have a track record of mitigating risk by filling their buildings with multiple tenants are breaking the rules for WeWork . The flexible office operator has a total of five million sq ft in the city and occupies the entire rentable office space in at least five buildings. In at least five or more other buildings, it occupies more than 50% of the space, according to The Real Deal. Properties with high WeWork occupancies trade at higher capitalisation rates than the overall market rate for similar buildings according to a June WeWork study. WeWork declined to comment on TRD’s analysis, and declined to disclose how much space it took in 14 of the overall 61 buildings. Cushman & Wakefield 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.
Chicago office landlords that have a track record of mitigating risk by filling their buildings with multiple tenants are breaking the rules for WeWork . The flexible office operator has a total of five million sq ft in the city and occupies the entire rentable office space in at least five buildings. In at least five or more other buildings, it occupies more than 50% of the space, according to The Real Deal. Properties with high WeWork occupancies trade at higher capitalisation rates than the overall market rate for similar buildings according to a June WeWork study. Cushman & Wakefield 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.