The surge in co-working leases that accompanied the rise of WeWork will take a pause in the aftermath of the startup's abandoned IPO, a prominent New York developer said Thursday.
In recent quarters, as much as 25 percent of office leases in New York have gone toward flexible workspace. But a "precipitous drop" may come over the next six to nine months, said Scott Rechler, chief executive officer of RXR Realty, which owns buildings including 75 Rockefeller Plaza.
"WeWork, all their peers and landlords and users of flexible workspace, are all taking a pause to let the dust settle," he said Thursday at a real estate conference in New York.