Working out WeWork Worries - Advice from Giles Fuchs

The mounting difficulties facing WeWork in recent weeks have naturally raised questions, not only for the company’s investors and many thousands of tenants but also for landlords.

As an expert advising landlords, Giles Fuchs writes in Property Week, outlining how landlords can be best prepared for any potential fallouts.

The key to minimising disruption, securing income streams and protecting businesses lies in being prepared and having a contingency plan in place.

Giles notes that there are many other providers able to easily and seamlessly step in to take over or temporarily manage landlords’ flexible office space in the event of WeWork’s withdrawal, however, it is important to identify them and initiate conversations early in order to ensure a smooth transition.

Another vital step for landlords is to reassure WeWork’s tenants. Landlords need to clearly communicate to these tenants that they will do everything possible to ensure they do not lose their business premises and their businesses. will be able to continue as usual. If worried tenants leave, so does the income, so this must be a priority.

Landlords should also consider how they will minimise any disruptions in their buildings. This means shoring up the basics, for example, making sure electricity and telecoms bills are paid, in order that tenants can continue to operate as normal.

Most importantly landlords who will potentially be impacted must not be proactive in taking steps to protect their businesses and their underlying tenants.

Giles also highlights the continued appeal of the flexible office model and believes there will be continued demand for this type of office space in the future.

Read it online here, or on page 24 of the latest Property Week magazine.