WeWork gives up two prime Singapore locations

SINGAPORE – WeWork is giving up space in two prime locations in Singapore, underscoring the company’s challenges in one of its most promising markets.

One co-working space spanning the 17th to 20th floors of Manulife Tower at 8 Cross Street has ended operations.

Another three-floor space at UE Square at 83 Clemenceau Avenue will close in 2025.

A WeWork spokesperson said in a statement that despite Singapore being a “priority market”, it has “made the difficult decision” not to renew leases at the two locations.

The company remains committed to spaces at 12 remaining buildings in Singapore “well into the future”, the spokesperson added.

Representatives for the owner of the 28-story Manulife Tower in the Central Business District (CBD), Canadian insurer Manulife Financial Corp, did not respond to emailed requests for comment. 

A representative for the 18-story UE Square in the River Valley area also did not respond to a request for comment.

WeWork occupies space spanning 51,236 sq ft at the building, which is owned by United Engineers, a subsidiary of Singapore-based Chinese developer Yanlord Land Group.

WeWork had said in April that it “plans to remain in its current buildings in Singapore for the foreseeable future”, after completing its lease negotiations and real estate rationalisation process in the country. 

Singapore, which had seen a mass return to the office since the Covid-19 pandemic, had been a rare bright spot for the co-working company that is seeking to recover from its fall from grace.

The New York-based company was cleared to exit bankruptcy in May. 

WeWork’s latest setback dovetails with a spike in prime office vacancies in the Republic, which jumped to the highest level in more than two years in the third quarter, according to data from property consultancy Jones Lang LaSalle. 

Some office tenants have also been looking to consolidate space to save on costs, at the expense of co-working offices. Earlier in 2024, Chinese technology giant Tencent Holdings gave up a WeWork space at 30 Raffles Place in the CBD after it opted to bring together employees at a new office in another prime tower. BLOOMBERG