Shared office space giant WeWork and Cushman & Wakefield PLC, one of the largest commercial real estate firms in the world, are negotiating to form a $ 150 million partnership to navigate the new world of remote work and workplaces. flexible work.
As part of the alliance, Cushman would make a $ 150 million investment in the planned merger between WeWork and a public company later this year. That merger, which WeWork is expected to value at $ 9 billion, including debt, will limit the company’s effort to rebuild its balance sheet after the high-profile collapse of its planned initial public offering in late 2019.
The Cushman deal comes as office building owners and tenants are scrambling to plan for the return of tens of millions of employees to urban centers and suburban office parks after about 18 months of working from home. Many thought that Labor Day would be a major turning point. But concerns about vaccination rates and variants of the Covid-19 virus have forced many companies to delay their plans.
Executives at WeWork and Cushman believe that by teaming up, they can offer office building tenants and owners help to reshape the office building industry while addressing mounting pressure from employees to achieve more work arrangements. flexible. Some of the largest US corporations have already announced plans to allow some form of remote work for the indefinite future.
Cushman, which had $ 4.17 billion in revenue during the first half of 2021 and operations in 60 countries, has a big business managing tenant office space. Cushman executives believe WeWork’s technology, application, reputation for fashion spaces and other amenities will help give the association a competitive advantage.