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In Shift, WeWork Pushes for Longer Leases

WeWork, which built its business on luring freelancers and startups with no-strings-attached office space, may now be looking to protect itself against drops in demand by going after bigger tenants that commit to longer stays. The company has begun pushing to lock some companies into year-long rental agreements rather than month-to-month.

The New York-based company has started offering year-long membership agreements as an option for companies looking to lease space at four soon-to-open buildings in Manhattan, said spokesperson Dominic McMullan. Those companies would get “small discounts to the regular price” of leasing space.

The move comes amid reports that WeWork has struggled to meet financial projections.

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“It’s perfectly natural for WeWork to say, ‘Hey, if there are people we can lock up for a year or longer, let’s do it.’ The question is, at what cost? Typically if you’re going to sign a year lease, you want a discount,” he said.

Chris ONeill and Francine Hardaway commented on this article.
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‘Hey, if there are people we can lock up for a year or longer, let’s do it.’