WeWork signs lease for Piedmont’s Class A trophy tower in Orlando - CRE Herald
[{"id": "ene4wtc", "text": "They be taking over.. \n\nCBRE had a prediction last year saying WeWork would own a ridiculous amount of office space by 20-something or other. Can\u2019t remember off the top of my head. They\u2019re a great concept.", "replies": [{"id": "ene9eur", "text": "Except they're asset light so they're not owning...\n\n&amp;#x200B;\n\n...CBRE got the entire business model of wework wrong?", "replies": [{"id": "ene9zy8", "text": "Wework will implode in next downturn and take a ton of LLs with it. The only LLs who are signing wework leases at this point have a gun to their head institutional owners aren\u2019t leasing to them unless they absolutely have to take them due to low lease velocity and acquisitions officers are taking a huge haircut to the WeWork lease when they underwrite them as a tenant. So there\u2019s that. Business is totally fucked.", "replies": [{"id": "eneay9g", "text": "Wework's so highly valued it's comical. Regus - LON listed - does the same thing and it's at approx. 1X revenue valuation. Wework had $47b off $1.8B giving it 26x revenue. Not to mention a lot of the leases it's signing are losses.", "replies": [{"id": "enebd2s", "text": "Total joke wework is going to fuck up the market for commercial office space when the tide goes out. All those buildouts for them are stupid fucking expensive and not really reusable so it\u2019s not like you can do an as-is deal in a we work space. \n\nYou have to be crazy desperate to sign a lease with them. The corporate guarantee is totally worthless from these guys.", "replies": [], "depth": 5}], "depth": 4}, {"id": "enef3e9", "text": "I work in institution, and we are still signing leases with WeWork. If you saw some of the term sheets these guys are signing, you\u2019d understand. We understand the risk, but as long as they\u2019re giving out bank LOC\u2019s for some of the rent we are ok", "replies": [{"id": "engk7px", "text": "I\u2019m on institutional side too we aren\u2019t / won\u2019t do them way too risky and the LOC / guarantee isn\u2019t worth it when they blow up. Also the TI fit out request from them is asinine", "replies": [{"id": "enhbrgf", "text": "I can see that- for us we monitor how much wework we have in each portfolio and each building as a whole. It\u2019ll take up maybe 15-20% of a specific office building max and we don\u2019t want it going over a threshold in the portfolio as a whole (not sure what the number is). \n\n\nIt also helps that they are using a lot of our space to sublease to enterprise clients (Amazon, Microsoft, etc) so it\u2019s not those millennials who are looking for somewhere else to work outside of their mothers basements.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}, {"id": "ens5ziu", "text": "Yup. Not mentioned in that article is that building's namesake tenant, SunTrust, is relocating and leaving a 125,000SF hole in the rent roll.", "replies": [], "depth": 4}, {"id": "ephnj51", "text": "BINGO", "replies": [], "depth": 4}], "depth": 3}, {"id": "enenmua", "text": "Meant to say occupy* \n\nMy bad", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eng91cn", "text": "In a downturn people will move out of shared work space and work from home or coffee shops.  This will also been seen as acceptable from their clients as everyone will be holding on just to survive.  This will be the easiest cost to cut or simply just walk away from.", "replies": [], "depth": 1}]