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I’m curious how hard this is going to hit commercial real estate, which already seems to be on the brink of collapse. What are the cascading effects like the su

I’m curious how hard this is going to hit commercial real estate, which already seems to be on the brink of collapse. What are the cascading effects like the subprime mortgage crisis?

rottencupcakes 3y ago
Afaict, the reason they announced that they most definitely may be going into bankruptcy next week is to play hardball with their commercial land lords and try to get a deal which will keep them alive. The idea being that the landlords (and everybody) knows that the commercial real estate market is super depressed, so if WeWork disappears the landlords may be stuck with an empty building for years.
- Havoc 3y ago
  Unless all their landlords globally are coming up for renegotiation this week that makes little sense
  - redslazer 3y ago
    If they go into liquidation or restructure then all their liabilities go up for renegotiation. So the threat of this happening makes all contracts renogotiable regardless of timeline.
    - Havoc 3y ago
      Ah right. That makes sense
- chrischen 3y ago
  Also Regus pulled the same move already https://globalinsolvency.com/headlines/iwg-plans-set-regus-insolvency https://globalinsolvency.com/headlines/iwg-plans-set-regus-i...
userinanother 3y ago
CRE has been slow to collapse because forced selling hasn’t quite happened yet so everyone is still trying to extend and pretend
- ethbr1 3y ago
  That was more tenable when rates were lower. 2x original interest rate now is going to make that more painful.