a thoughtful web.
Good ideas and conversation. No ads, no tracking.   Login or Take a Tour!
comment by kleinbl00
kleinbl00  ·  1472 days ago  ·  link  ·    ·  parent  ·  post: WeWork Skips Some Rent Payments as Coronavirus Undermines Revenue

Yeah - but what I'm saying is liquidating WeWork is going to be a grindingly unsatisfying exercise. Even their S1 lists $27b in assets and $24b in liabilities and that doesn't include their $47b in leases due. They go Tango Uniform and there's $47b in leases looking for $3b in remedy of which the big stuff has already been sold off.

The fact that their core is well-protected is fundamentally irrelevant if their bank vault is empty anyway.





cgod  ·  1472 days ago  ·  link  ·  

I guess you just change the locks and see how much you can get for a cold brew kegarator on Craigslist.

uhsguy  ·  1472 days ago  ·  link  ·  

You could but it’s probably not much. Having a commercial tenant in the building that’s late on Rent may be preferable to leaving the building empty and abandoned

kleinbl00  ·  1472 days ago  ·  link  ·  

I think there will be a lot of simply assuming the contracts.

WeWork was predicated on this idea that you had a "membership" that allowed you to jet around to all these other offices all over the place and I think that business model is done for a few years at least. At which point you recognize that your landlord isn't WeWork, it's whoever actually owns the building. I've probably linked these guys a half-dozen times; subleasing isn't fucking rocket science.

goobster  ·  1472 days ago  ·  link  ·  

THIS.

WeWork goes away, but the tenants stay and begin paying slightly higher rents to the building owners. Because the owners don't want the space vacant, anyone paying WeWork's rent can afford a little more, and the building landlord just hires someone to manage all the "small" contracts that were too small for them to consider as renters before.

That is, once people are allowed to go inside the buildings again....

kleinbl00  ·  1472 days ago  ·  link  ·  

Plus short-term leases are much more attractive if you feel like selling the building because it means you can do what you want without having to wait six years or buy someone out.