WeWork Holds Leverage Over Landlords in Threatened Bankruptcy

Coworking giant WeWork is flirting with bankruptcy, raising the prospect that its hundreds of landlords around the world could be forced to give it lease concessions.

With some $2.2 billion in rent obligations due next year, WeWork Cos. Inc.'s ability to recast or cancel its leases will be central to its survival. But the company’s fortunes also reflect the changing nature of work and an increasingly hybrid workforce, adding to the “double whammy” facing commercial landlords who are also struggling with higher interest rates.

If the company opts for Chapter 11, its landlords will be forced to either accept ...