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> When the technology sector is booming, as it is now, growth is strong. The risk, real-estate executives say, is that if demand falls—because of, say, a tech b
by smaili 11y ago
> When the technology sector is booming, as it is now, growth is strong. The risk, real-estate executives say, is that if demand falls—because of, say, a tech bust—WeWork’s revenue would drop, while the rent it owes to landlords stays constant.
Though an obvious risk, I wouldn't say it's the only one. To me I would be more concerned about the thousands of other spaces out there that are easily more affordable.
- notahacker 11y agoIn fairness, the advertised prices for the London ones are surprisingly competitive, but then that just raises the are they making enough to ensure they keep the lights on if they're not too busy? question... The real problem for the valuation if not the business itself is that apart from free beer, they're not really doing anything differently from most of the other spaces, and their brand and scale really isn't much of a draw for their audience. And they're notionally valued at over 5x the value a firm operating essentially the same business on a much larger scale...