WeWork’s recent struggles could put many of its leases in jeopardy. But according to a new report, its Soho and Flatiron deals are the most vulnerable if co-working rates drop.
The company’s lease obligations are only 2 percent below market rate in Soho and 4 percent below in Flatiron, the report from Ackman Ziff says.
The firm’s average rent in Manhattan is $58.91 per square foot, 20 percent below the average rate of $74.15. Its highest concentration of space is in the Financial District, where it leases 1.3 million square feet at about 16 percent below market rate.