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Will this have impact on the broader real estate market?
by jxi 3y ago
Will this have impact on the broader real estate market?
- malfist 3y agoUnlikely, they've been headed this way for a while. I believe this is their second bankrupcy. It's not like they're a big REIT
- hn_throwaway_99 3y agoYou are incorrect, this is not their second bankruptcy. They renegotiated some debt and leases previously but they have never actually filed for bankruptcy before today.
- ksherlock 3y agoThey currently claim 660 locations in 119 cities (avg 5.5/city) NYC seems to be the biggest with 49 or so. They will try to renegotiate all potentially profitable locations and cancel everything else, so maybe 50-75% get canceled? In average that's 2-4 canceled leases per city. That's commercial real estate so no effect on housing. https://www.wework.com/locations https://www.wework.com/locations
- captn3m0 3y agoThe 48 locations in India shouldn’t be impacted, as they are under WeWork India, where WeWork has a minority stake (27%). https://inc42.com/buzz/wework-globals-bankruptcy-will-have-no-impact-on-indian-unit/ https://inc42.com/buzz/wework-globals-bankruptcy-will-have-n...
- aitchnyu 3y agoWonder how many bullets India dodged by having smaller stakes held by foreign entities. In Tata AIG, AIG has 26%, so we werent worried when AIG was in trouble in 2008.
- lgleason 3y agoIt will have the same effect as a raindrop does to a flood. One of many contributing events that continue to create downward pressure on prices and rent.
- jxi 3y agoIs this a raindrop or more like a whole group of rain clouds?
- eep_social 3y agoAlmost certainly priced in already given that the pending filing was in the news a week or so ago. I haven’t been following the market lately but CRE has been getting absolutely crushed all year, remember the “return to office” hubub? And WeWork is a big player in terms of the news cycle but tiny in comparison to the market as a whole.