Amid the financial challenges faced by WeWork in the United States, where the company founded by Adam Neumann was forced to file for Chapter 11 of the Bankruptcy Law, concerns are arising about the possible global repercussions. However, both the company and its main lessor in Mexico, Fibra Uno (Funo), have stated that the operation in the country remains stable and without negative impact.
In recent years, WeWork has seen a significant decline in its presence in the United States, closing more than 20% of its 230 coworking spaces in that country. Despite these challenges, the company assures that its operations in Latin America, including Mexico, are not affected by the restructuring process.
Raúl Gallegos, general director of Fibra Next, a subsidiary of Fibra Uno, emphasized that chapter 11 does not include Mexico and that the operation in the country appears to be in good condition. This statement coincides with WeWork’s official statement, which ensures that the company’s franchisees around the world are not affected by the procedures in the United States.
According to Jorge Pigeon, vice president of Capital Markets and Investor Relations at Funo, the Fibra’s exposure to WeWork has decreased, currently representing 3.2% of its Gross Profitable Area. Although flexible office occupancy in Mexico remains solid, Funo’s most recent results report reveals an occupancy of 79.7% in the entire Fibra office segment at the end of 2023.
Regionally, WeWork has seen variation in its space occupancy behavior in recent years. According to an analysis by SiiLA, in Mexico, its occupied area decreased by 15% between 2020 and 2023, while in Brazil it increased by 1% and in Colombia it grew by almost 15%. This data suggests that the company faces specific challenges in certain markets, but remains stable in others.
The director of WeWork in Latin America, Claudia Woods, highlighted in an interview with Bloomberg that the firm’s occupancy rate in the region is 73%, and that Brazil and Mexico represent approximately 70% of its regional revenue. Other markets, such as Argentina, Chile, Colombia and Costa Rica, contribute to the rest of the revenue.
Although WeWork faces challenges such as bond defaults, customer losses and revenue declines in the United States, how the company restructures its finances will determine its performance globally. Meanwhile, in Mexico, both the company and its real estate partners say that operations continue smoothly and that the country is excluded from the ongoing financial problems in the United States.
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