4 ms·
They don't buy them, I believe they lease them
by spenvo 7y ago
They don't buy them, I believe they lease them
- LargeWu 7y agoFair enough, my mistake. I wouldn't say that fundamentally changes their business model though.
- mountainofdeath 7y agoBut it does. A lease is somewhere between a capital expenditure and a normal expense. It's not a tangible asset like a building is so it can't be factored into the book value and are instead ongoing liabilities. In WeWork's case, these are multi year leases that cost almost as much to get out of as to pay outright.
- thefj 7y agoIt's more complicated than that... They also have a different arm that buys the buildings. https://www.wsj.com/articles/wework-the-workspace-giant-wants-to-be-its-own-landlord-using-other-investors-money-1526212801 https://www.wsj.com/articles/wework-the-workspace-giant-want...
- jakelazaroff 7y agoFrom their own CEO, no less: https://www.businessinsider.com/wework-ceo-adam-neumann-office-space-landlord-2019-1 https://www.businessinsider.com/wework-ceo-adam-neumann-offi...