SINGAPORE: Shared office space operator WeWork has announced it will not renew leases for two key office spaces in Singapore, reducing its local footprint to 12 locations. The company described the decision as part of its ongoing effort to optimize its real estate portfolio.
According to a report by Bloomberg, the spaces vacated by WeWork include the 17th to 20th floors of the Manulife Tower at 8 Cross Street, which has already ceased operations, and three floors at UE Square on 83 Clemenceau Avenue, slated for closure next year.
A spokesperson for WeWork confirmed that Singapore remains a “key market” for the company but acknowledged that the decision to relinquish the leases was difficult. Despite the closures, the spokesperson assured that the company is committed to maintaining its remaining 12 co-working spaces in Singapore “for the foreseeable future.”
This development follows WeWork’s broader challenges on the global stage. The New York-based firm, which faced financial turmoil, successfully exited bankruptcy proceedings in May. In April, WeWork had reaffirmed its commitment to continuing operations in Singapore while undergoing lease negotiations and real estate adjustments.
WeWork’s challenges are unfolding alongside a broader trend of rising office vacancy rates in prime areas of Singapore. Data from real estate consultancy Jones Lang LaSalle reveals that the vacancy rate in the third quarter of 2024 surged to its highest level in over two years, reflecting headwinds in the commercial real estate market.