WeWork Is Making $3 Billion of Debt Securities Look Riskier, S&P Says

New York City’s real-estate market is usually relatively resilient during recessions. But today, its largest renter of commercial space is a single “co-working” office manager, which could add extra risks for the city’s landlords when the next recession hits, according to S&P Ratings.

The growth of WeWork and similar co-working spaces since the financial crisis has added risk to the market for commercial mortgage-backed securities, according to the credit-ratings firm. About $3.1 billion of U.S. commercial mortgage debt has exposure to WeWork, the analysts found.