After years of speculation, handwringing, and infusions of capital, coworking pioneer WeWork has entered bankruptcy, the culmination of one of the biggest destructions of value in real estate history.
The question now is: what`s next?
For WeWork itself, the bankruptcy process is likely to be messy and complicated — it will look to shed unprofitable locations and emerge as a viable business, or it will find a buyer willing to take on what is still one of the best-known brands in real estate.
“It`s kind of like WeWork is losing weight. It was a fat slob, and now it`s going to get on Ozempic,” said Leo Jacobs, a commercial litigation and bankruptcy attorney and founder of Jacobs PC in New York. “It`s going to stick itself, it`s going to have a balance sheet that is worth looking at, and it`s going to become investable again.”......more
RSK: Surprise, surprise. Leaving 7 million sf vacant in NYC can cause a problem. Most owners will probably not release the space but have other shared office companies manage and operate the WeWork spaces. All depends on creditors and their position in this bankruptcy...
Share this article on you social outlets
- - Volume: 11 - WEEK: 46 Date: 11/14/2023 3:09:43 PM -