WeWork Is on the Brink of Collapse

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4 pointsgsibble4 comments

“ We are about to dump 31 Salesforce Tower’s worth of office space onto the market.”

So what? As a percentage of the national stock of office space, that is not very much.

See where I pointed out it represents $16B in lease obligations they are about to default on and the fact those buildings are likely to be repossessed. And then think about the effect on the price of commercial real estate when they are sold in foreclosure.

So...unworkable business plan(s) from poorly run cult...er...companies, overbuilt commercial real estate when there's a huge multiyear down trend, poor planning by customers, fraud, throwing good money following bad ending in a business failure. As long as they aren't declared 'too big to fail' and the burden is shifted from the grifters to the public isn't this how capitalism works, painful as it might be?

Much like the last time commercial real estate took a giant dump on everyone (early 2010s?), clearing out the bad actors might be a long term good.

Why should I care?

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