Shared offices’ delayed revival is bad for WeWork

Wework

07/06/2021 10:39

(The author is a Reuters Breakingviews columnist. The opinions
expressed are their own.)
    LONDON, June 7 (Reuters Breakingviews) - Shared office
provider IWG  IWG.L  is straining a jam-tomorrow promise. Shares
in the 3 billion pound WeWork rival plummeted 15% on Monday
morning after Chief Executive Mark Dixon warned https://otp.tools.investis.com/clients/uk/iwg_plc/rns/regulatory-story.aspx?cid=1012&newsid=1481535&culture=en-GB
 that underlying EBITDA this year will be “well below” last
year’s pandemic-afflicted levels. Continuing lockdowns are
keeping some offices closed while the spread of highly
contagious Covid-19 variants has cast doubt on the UK’s
reopening plans. 
    The gloomy forecast is bad news for WeWork’s stock market
debut  urn:newsml:reuters.com:*:nL3N2N74E2. The New York-based shared office provider
agreed in March to go public in a deal with blank-cheque firm
BowX Acquisition Corp  BOWX.O  that values it at $9 billion. But
IWG’s revelation of weak occupancy suggests shared offices are
not yet benefitting from changes to working models. In fact,
more traditional office landlords like British Land  BLND.L  are
faring better. The 5 billion pound office owner’s shares are
down 12% since March last year; IWG is now down 30%. (By Aimee
Donnellan)
    
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