The bankruptcy of NeueHouse, which closed all locations and vacated roughly 150,000 square feet of premium office space, has created a ripple effect for landlords such as Kilroy Realty Corporation. Many now face the challenge of backfilling large blocks in key markets. While the broader office market shows signs of recovery and growing interest from emerging sectors like AI, the sudden vacancies highlight how fragile the coworking model remains amid rising costs and post-pandemic shifts in how people work.