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WeWork not paying rent
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Date: April 8th, 2020 9:36 PM Author: aquamarine electric parlour codepig Really not surprising...though doesn't Neumann own many of the buildings that WeWork leases?
******************************* WeWork has stopped paying rent at some U.S. locations, in the latest sign that the co-working company is aggressively trying to cut costs as the economic downturn eats into its revenue.
People briefed on the matter said WeWork has yet to mail in its April rent check at numerous properties while it tries to renegotiate leases.
RECENT WEWORK NEWS WeWork Directors Sue SoftBank Over Terminated $3 Billion Share Offer SoftBank Says It Won’t Buy WeWork Co-Founder Neumann’s Shares WeWork’s Board Prepares for a Fight as SoftBank Gets Cold Feet The New York-based company recently hired brokerage firms JLL and Newmark Knight Frank NMRK 10.20% to negotiate rent relief or convert lease deals into profit-sharing agreements in a bid to drive down its fixed monthly expenses.
WeWork is among a growing number of U.S. businesses that are skipping out on rent payments as companies look to preserve cash ahead of what could be a long economic downturn brought on the pandemic.
WeWork’s push to lower its rent costs and switch leases to management agreements started long before the coronavirus outbreak. The shared-office provider came close to running out of money after a failed attempt at an initial public offering in the fall, in part because of its massive real-estate expenses.
Following a bailout by SoftBank Group Corp., 9984 +2.78% WeWork had $4.4 billion in cash and cash commitments at the end of 2019. While its U.S. locations are still open, many are mostly empty as large parts of the economy remain shut down.
The company’s bonds traded at 37 cents on the dollar as of Wednesday, down from 90 cents in late February.
WeWork isn’t treating all landlords the same: while some say they have been paid, others say they are still waiting for their checks.
“WeWork believes in the long-term prospects of our locations and our relationships with landlords across the world,” a WeWork spokeswoman said in a statement. “Rather than implementing a companywide policy on rent payments, we are individually reaching out to our more than 600 global landlord partners to work in good faith towards finding asset-specific solutions that benefit all parties involved.” |
Date: April 8th, 2020 9:41 PM Author: Glittery stock car community account Full article pls, or was that everything? (http://www.autoadmit.com/thread.php?thread_id=4502856&forum_id=2#39972850) |
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Date: April 8th, 2020 9:42 PM Author: aquamarine electric parlour codepig That is the full article from WSJ; below is a link
https://www.wsj.com/articles/wework-skips-rent-payments-as-coronavirus-hits-revenue-11586379714?mod=hp_lead_pos6 |
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Date: April 8th, 2020 9:43 PM Author: Glittery stock car community account Ty
Competitor industrious has been laying off a ton of people |
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Date: April 8th, 2020 9:44 PM Author: Heady tan menage mad cow disease Real Estate guy here, nobody is paying rent. Staples isn't paying rent even though they are open. The entire corporate world is smarter than prole tenants. These companies all realize that eviction calendar on the other end will be 9-12 months long and they can basically refuse to pay, bring the landlord to its knees so landlord can satisfy the mortgage, and extract major concessions. This coronavirus has started a ton of this opportunism. (http://www.autoadmit.com/thread.php?thread_id=4502856&forum_id=2#39972864) |
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Date: April 8th, 2020 9:46 PM Author: aquamarine electric parlour codepig Aren't lenders and commercial real estate owners fucked then? And won't that result in epic recession, at least for that sector and possibly banking/finance sector? (http://www.autoadmit.com/thread.php?thread_id=4502856&forum_id=2#39972874) |
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Date: April 8th, 2020 9:48 PM Author: Heady tan menage mad cow disease Brother, that's what I've been working on the past 3 weeks. Barring some kind of rescue, the entire commercial real estate market (hotel and retail specifically) are on the brink of total 100% collapse. We are talking every mall in this country being 40% vacant on the other end. People have no idea how bad it is. (http://www.autoadmit.com/thread.php?thread_id=4502856&forum_id=2#39972883) |
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Date: April 8th, 2020 9:57 PM Author: Pontificating home hissy fit Except that the govt will step in and just give them your (and my, and every taxpayers) money. (http://www.autoadmit.com/thread.php?thread_id=4502856&forum_id=2#39972927) |
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Date: April 8th, 2020 9:48 PM Author: aromatic bawdyhouse doctorate Let it shake out, the equity market bears most of the risk of this versus 2008 (http://www.autoadmit.com/thread.php?thread_id=4502856&forum_id=2#39972885) |
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Date: April 8th, 2020 9:50 PM Author: Heady tan menage mad cow disease That is not true. Lenders are going to overtake shopping malls with 40% vacancy. There was insane leverage on these malls. Lenders are totally at risk just the same. (http://www.autoadmit.com/thread.php?thread_id=4502856&forum_id=2#39972891) |
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Date: April 8th, 2020 9:48 PM Author: sable voyeur (http://www.autoadmit.com/thread.php?thread_id=4502856&forum_id=2#39972880) |