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I’m curious how hard this is going to hit commercial real estate, which already seems to be on the brink of collapse. What are the cascading effects like the subprime mortgage crisis?

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Afaict, the reason they announced that they most definitely may be going into bankruptcy next week is to play hardball with their commercial land lords and try to get a deal which will keep them alive.

The idea being that the landlords (and everybody) knows that the commercial real estate market is super depressed, so if WeWork disappears the landlords may be stuck with an empty building for years.

Unless all their landlords globally are coming up for renegotiation this week that makes little sense

If they go into liquidation or restructure then all their liabilities go up for renegotiation. So the threat of this happening makes all contracts renogotiable regardless of timeline.

Ah right. That makes sense

Also Regus pulled the same move already https://globalinsolvency.com/headlines/iwg-plans-set-regus-i...

CRE has been slow to collapse because forced selling hasn’t quite happened yet so everyone is still trying to extend and pretend

That was more tenable when rates were lower. 2x original interest rate now is going to make that more painful.

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