Either exemplifying the economic slowdown or because the business model is a failure, WeWork is suffering from low-occupancy rates in China.
The vacancy rate in Shanghai was 35.7 percent in October. Shenzhen had a 65.3 percent vacancy, and Hong Kong was at 22.1 percent. Central China had a staggering 78.5 percent vacancy rate.
WeWork has been aiming for at least a 90 percent occupancy rate.
WeWork’s building openings slipped to 78.1 percent in October from 79 percent in September.
TREND FORECAST: The Chinese division of WeWork was valued at $5 billion after SoftBank saved it with a $6.5 billion loan. Just this week, WeWork announced layoffs in Europe, the Middle East, and Africa of approximately 4,000 of its 12,000 staff.
As goes with WeWork, so, too, does the global economy. The new co-working spaces business model is also a new economic indicator. It grew steadily as did the global economies, and now it’s facing financial difficulties as the world heads toward the “Greatest Depression.”
In fact, when the “Greatest Depression” strikes, the WeWork model will be out of work.