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WeWork could run out of cash by next month
- CamelCaseName 7y agoI found this part of the article particularly entertaining: > We raised $3.4 billion in cash and spent it mostly on investments that included leasehold improvements, security deposits with landlords, and its purchase of the flagship Lord & Taylor building. And then when you click the linked investopedia article on leasehold improvements: > Once the lease ends, the improvements generally belong to the landlord, unless otherwise specified in the agreement. If the tenant is able to take them, he or she must remove them without any damage to the property. Commercial landlords must love WeWork!
- socalnate1 7y agoThere is a lot to criticize WeWork for, but this isn't one of those things. Those leasehold improvements are the reason that people are customers of WeWork (i.e. they take old staid buildings and make them great offices.) It's literally their only meaningful point of differentiation from competitors.
- sokoloff 7y agoThis is also completely standard in commercial lease arrangements. Sometimes, landlords will offer incentives to lease a space; often these take the form of rebates intended to be used for leasehold improvements and/or rent-free periods during initial construction.