Microsoft Leases Entire WeWork Location in Tel Aviv
Startups and other small tenants are being told to move out
Of the three floors not yet occupied by Microsoft, one has been serving as WeWork’s Israeli tech development center, and two have been parceled out to tenants on short terms leases. In recent days, these tenants have been receiving notices that they’re contracts are ending.
Microsoft is in the midst of constructing a brand new corporate campus for thousands of employees in the Tel Aviv suburb of Herzliya. In meantime, much of the tech company’s local workforce has been based at a nearby coworking office operated by Mindspace, a WeWork competitor.
The past two years have seen WeWork ramp up its business with a corporate clientele that now accounts for a quarter of the real estate company’s business. Microsoft is joined by Facebook, which rents space from WeWork in New York for 7,000 employees and IBM, that last year took over an entire WeWork location in the same city.
told Calcalist last month that his company is tweaking the design of its space to cater to the demands of large companies.