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Originally Posted by We vs us
Hoo boy -- if you have 10 minutes, I highly recommend this brutal brutal takedown of WeWork, CEO Neumann, and private equity culture in general. Probably the most salient point for us in the whole thing is how fragile WeWork actually seems, and how exposed the RE markets in major tech metros (like ours) are to a potential Chapter 11 filing by WeWork.
http://nymag.com/intelligencer/2019/...m-neumann.html |
WeWork's business model always seemed like some kind of pipe dream (turns out that might be an accurate description in more ways than one) to me. This article confirms that suspicion and then some. I hope the fallout is minimal, but this could be a chilling development in an economic down cycle. Hell, it could even be the cause of an economic down cycle in commercial RE development.