WeWTF: At What Point Does Malfeasance Become Fraud?
I used to spend some time in operational real estate. Massive fixed cost base, operational leverage, lowish growth and made money through compounding that with very high financial leverage. All of your assumptions are around increased occupancy and rate, and you always underestimate refurb capex. I’d looked at shared office businesses such as Regus before and then I became a tenant of one of the nowhere London trendy groups. Great product, very convenient but not cheap!
Back in early October The New Yorker magazine interviewed NYU Biz-School Professor Scott Galloway who had been calling out WeWork for some time – it’s a fascinating insight into the structural situation around WeWork’s heavy fall from grace.
Time: 13 min read