WeWork Risk Seen in Commercial Mortgage Bonds, Barclays Says
- Bank found $7.5 billion of CMBS with exposure to company
- New York City property loans comprise about 38% of that total
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Uncertainty surrounding the future of WeWork Inc., the office-space company reeling from a management shuffle and real estate problems, will pressure the commercial mortgage-backed securities market, with New York being particularly exposed, strategists for Barclays Plc write.
The co-working office company says there’s “substantial doubt” it will even be able to stay in business, as it bleeds cash while customers of its office rentals cancel their memberships in droves, according to a statement Tuesday. WeWork said it intends to take several measures to alleviate risk, including reducing rent and tenancy expenses by restructuring and negotiating more favorable lease terms.