Tech

WeWork’s offices are now full as they were before the pandemic


The occupancy rate in the previous quarter was in line with the rate from the end of 2019.

(Bloomberg) – WeWork Inc. said offices were 72% filled at the end of the second quarter, matching occupancy rates from pre-Covid-19 at the end of 2019 for the first time.

WeWork’s occupancy rate – the percentage of total desks that were rented out – fell dramatically in the first year of the pandemic, as many tenants canceled their leases and decided to work from home. That index hit a low of 46% a year later.

The company told a turnaround story when it went public last year in a merger by white check. WeWork’s buildings have gradually filled up again. WeWork management believes that more and more customers are attracted to flexible office space offerings as they try to figure out long-term real estate strategies in a new world of hybrid work and work remotely. It currently has 62,000 subscriptions to the Unlimited card, a product that allows customers to book in less time.

On the other hand, the operating situation in the second quarter was less positive. The New York-based co-op had $815 million in revenue, missing the median analyst estimate compiled by Bloomberg of $821 million.

WeWork continues to lose money and is closing that gap more slowly than anticipated: Last quarter it reported a loss of $635 million when analysts expected $479 million. Its loss in the second quarter was larger than the first quarter’s $504 million figure.

However, the company is working to overcome its once rampant cash burn. In the first quarter of 2021, WeWork lost $2.1 billion due to the impact of the ongoing Covid-19 pandemic and a huge payout to its co-founder and former CEO. practice, Adam Neumann. The company has also sought to expand its software offerings; in April, it said it would start selling tech tools to help companies manage their employees and physical spaces.

More stories like this are available on bloomberg.com

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