The final liquidation of WeWork has released 50 million square feet of office space onto an already oversupplied market, further depressing commercial real estate values in major cities.
Market Shock
The flood of sublease space is concentrated in New York, San Francisco, and London — markets already struggling with 25-30% vacancy rates. Asking rents in affected buildings have dropped 20% overnight.
Opportunity
Small businesses and startups are finding premium office space at historic discounts. Fully furnished former WeWork spaces are available at 40-60% below pre-pandemic rates.
- 50 million sq ft released to market
- NYC, SF, London most affected
- Rents dropping 20% in affected buildings
- Startups finding premium space at deep discounts
