As WeWork tries to right its ship following its disastrous IPO attempt, it is opening several large, new spaces in the D.C. market that will add hundreds of thousands of square feet to its portfolio.

As it attempts to fill those spaces, it will do so with a radically different corporate outlook: The company is laying off 2,400 employees, has a new chairman and co-CEOs and is grappling with mounting losses: $1.25B in the third quarter alone.

WeWork has signed eight new D.C.-area leases totaling over 550K SF in the last year, and several of them are set to open in the coming months. The spaces will bring its D.C.-area portfolio to 22 locations totaling over 1.7M SF of coworking space, according to CBRE. The openings will require WeWork to capture a significant share of the office demand in a D.C. market that has experienced rising vacancy.

“I still think coworking is alive and well and will remain in demand, but as for WeWork itself, I’m not sure how they’ll be able to absorb a lot of this vacancy that is existing and coming online, especially here in Washington,” Savills Corporate Managing Director Jon Glass said.

The large blocks of coworking space WeWork is bringing to the D.C. market are opening as the city experiences record-high office vacancy rates. As of Sept. 30, D.C.’s office vacancy rate is 13.3%, according to CBRE. Market vacancy statistics count coworking facilities as occupied space, whether or not the operators have filled them.

Coworking providers have accounted for the lion’s share of D.C.’s leasing demand so far this year. CBRE’s research found 703K SF of net demand in 2019 has come from coworking, a majority of the city’s 1.3M SF of leasing demand this year.