Bankrupt WeWork Owes Boston Landlords Over $7M, Seeks To Exit 2 Leases In City

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It finally happened.

After years of speculation, handwringing, and infusions of capital, coworking pioneer WeWork has entered bankruptcy, the culmination of one of the biggest destructions of value in real estate history.

The question now is: what's next?

For WeWork itself, the bankruptcy process is likely to be messy and complicated — it will look to shed unprofitable locations and emerge as a viable business, or it will find a buyer willing to take on what is still one of the best-known brands in real estate.

“It's kind of like WeWork is losing weight. It was a fat slob, and now it's going to get on Ozempic,” said Leo Jacobs, a commercial litigation and bankruptcy attorney and founder of Jacobs PC in New York. “It's going to stick itself, it's going to have a balance sheet that is worth looking at, and it's going to become investable again.”

WeWork is one of the world’s largest private sector office occupiers. As recently as last year, it occupied 44M SF, with 15M SF in the U.S. So its collapse will have inevitable knock-on impacts for cities around the world and the coworking sector it helped to revolutionize.  Complicating the effort will be landlords looking to fight for…

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Distress in real estate is prevalent in industry chatter and in the headlines, but when it comes to assets actually changing hands, it still isn't much of a factor. In fact, less than 2% of recent commercial real estate sales in the U.S. have been of distressed assets, a number…

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