10/16/2019, 2:58 AM (Source: TeleTrader)
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WeWork suspends China expansion - report

WeWork suspended the plans to open sites in 2021 in China though expansion is still on for next year, insiders revealed to Nikkei news agency. The embattled startup which was recently incorporated as We Co. is thus loosening the grip on the coworking real estate market and the article notes smaller rivals could make use of the opportunity in the world's second-largest economy.

The company operates in the most populous nation as ChinaCo, a joint venture, in 12 cities, and it has so far leaned on the country's growth potential for overall strategy. The occupancy rate in some of the new spaces including in Shenzhen is reportedly between 30% and 50% compared to the 65% breakeven rate.

The unnamed sources said competitors' price policy has prompted WeWork to look for customized solutions for corporate customers.

Breaking the News / IT