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While related, commercial real estate ownership and leasing have two separate markets. I imagine WeWork's bankruptcy doesn't invalidate their [sub-]lease agreem
by pesfandiar 3y ago
While related, commercial real estate ownership and leasing have two separate markets. I imagine WeWork's bankruptcy doesn't invalidate their [sub-]lease agreements (with actual occupants) and just transfers them to creditors. What kind of inventory do you mean will be put back into the market (own vs. lease)?
- theptip 3y agoI’m just talking about the market rate for rent, which owners would be charging to tenants, and which has already been depressed by lots of tenants offering subleases since they are stuck with long leases they can’t use. > I imagine WeWork's bankruptcy doesn't invalidate their [sub-]lease agreements (with actual occupants) and just transfers them to creditors I’d be shocked if it works out that way. WeWork operates a highly curated experience, and at nowhere near full occupancy. Can the owner take over and provide the same service? (Don’t think most owners want to get in the business of operating a coworking space, even if it was profitable, which it currently looks like it is not). As a WeWork subscriber I would be surprised if you’d continue to pay for a space with someone else running it? Seems like “handing over some tenants” doesn’t really parse for this business. Don’t know what % of WeWork is committed space as a sublease, but plenty of it is not (that is one of the USP of their offering).