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>> "“In a hybrid work world where demand for WeWork’s product should be greater than ever, my clients believe that the synergies and management expertise offere

>> "“In a hybrid work world where demand for WeWork’s product should be greater than ever, my clients believe that the synergies and management expertise offered by an acquisition could significantly exceed the value of the debtors on a stand-alone basis,” the lawyers wrote. “WeWork should at least educate itself about that potential and not preclude itself from maximizing value.” > hybrid work > demand > greater than ever WAT

kadoban 3y ago
It's not _completely_ wrong necessarily. As having a giant office for every worker, every day stops being necessary, more flexible work spaces could make sense.
- 15457345234 3y ago
  I can see the demand for on-demand office space increasing, but CBD real estate is going to be such a choppy market that timing it is going to be horrifically hard so as not to end up on the wrong side of the trade. Also the real estate holders know that every bit of space they rent to WeWork is going to be re-entering the market to compete so they're not going to be inclined to give generous terms. Unless WW has a very good grip on the market direction and timing it's going to be very easy for them to take huge losses (again)
vidarh 3y ago
If I were to start another company, I would be less inclined than ever to lease fixed office space vs. look for options for people to grab co-working spaces on an as-needed basis or short term office space for specific projects. It might well be there's lots of room for growth for something well executed (but I'm not convinced that means WeWork) in that space as a way for companies to scale down their fixed office footprint.
- 15457345234 3y ago
  I would agree with you that overall demand is likely to shift towards short-term flexible office space and away from long term leases, I just don't understand why large real estate holders will leave that piece of the pie there for third parties to arbitrage, unless they're genuinely desperate, and I don't think they'll become that genuinely desperate because the government will act to shore them up because of how critical central business district real estate values are in general to so many things. I see large real estate holders spinning up WW-like departments and following the WW model but I don't see a company that doesn't itself _own_ the real estate being able to prosper. WW managed to cultivate a very trendy atmosphere and all the associated types piled in accordingly but that only lasts for a while; sooner or later you run out of cash to burn. I have no idea why SoftBank threw money at WW like they thought they had to spend it all before the world ended, I'm not sure that they really know either.
  - vidarh 3y ago
    They've had many opportunities to do that over the years, and instead left the space to stodgy providers like Regus. Some might try to address it now, others will just unload their assets or look to partner with someone to do it for them. It's not a given they'll want to be the ones taking the risk - ironically with WeWork likely to be one of the things making some of them wary of starting their own. Better to let someone else burn other shareholders money if it doesn't work. But ultimately, irrespective of political clout, there's only so long you can shore up a glut in supply before there will be a push towards e.g. residential conversions and the like. I agree with your skepticism with respect to WW's ability to be the one to profit, though.

kadoban 3y ago

It's not _completely_ wrong necessarily. As having a giant office for every worker, every day stops being necessary, more flexible work spaces could make sense.

15457345234 3y ago
I can see the demand for on-demand office space increasing, but CBD real estate is going to be such a choppy market that timing it is going to be horrifically hard so as not to end up on the wrong side of the trade. Also the real estate holders know that every bit of space they rent to WeWork is going to be re-entering the market to compete so they're not going to be inclined to give generous terms. Unless WW has a very good grip on the market direction and timing it's going to be very easy for them to take huge losses (again)

vidarh 3y ago

If I were to start another company, I would be less inclined than ever to lease fixed office space vs. look for options for people to grab co-working spaces on an as-needed basis or short term office space for specific projects. It might well be there's lots of room for growth for something well executed (but I'm not convinced that means WeWork) in that space as a way for companies to scale down their fixed office footprint.

15457345234 3y ago
I would agree with you that overall demand is likely to shift towards short-term flexible office space and away from long term leases, I just don't understand why large real estate holders will leave that piece of the pie there for third parties to arbitrage, unless they're genuinely desperate, and I don't think they'll become that genuinely desperate because the government will act to shore them up because of how critical central business district real estate values are in general to so many things. I see large real estate holders spinning up WW-like departments and following the WW model but I don't see a company that doesn't itself _own_ the real estate being able to prosper. WW managed to cultivate a very trendy atmosphere and all the associated types piled in accordingly but that only lasts for a while; sooner or later you run out of cash to burn. I have no idea why SoftBank threw money at WW like they thought they had to spend it all before the world ended, I'm not sure that they really know either.
- vidarh 3y ago
  They've had many opportunities to do that over the years, and instead left the space to stodgy providers like Regus. Some might try to address it now, others will just unload their assets or look to partner with someone to do it for them. It's not a given they'll want to be the ones taking the risk - ironically with WeWork likely to be one of the things making some of them wary of starting their own. Better to let someone else burn other shareholders money if it doesn't work. But ultimately, irrespective of political clout, there's only so long you can shore up a glut in supply before there will be a push towards e.g. residential conversions and the like. I agree with your skepticism with respect to WW's ability to be the one to profit, though.