WeWork Leases Long, Rents Short----The Lehman Wreck Of The Everything Bubble

Skeptics say WeWork’s investors who have given WeWork its billions don’t fully appreciate the risks of the business. Its client list still includes a big share of startups that may not be around for long, as well as larger companies that could leave in a recession. WeWork is on the hook for the long-term leases.

“They’re spending a lot of other people’s money very rapidly,” said Frank Cottle, who runs a network of serviced-office companies and sold a large portfolio of serviced offices to IWG’s predecessor, Regus, two decades ago. “The people investing in WeWork are looking at its story,” he said. “They’re ignoring its profitability.”

https://www.wsj.com/articles/softbank-discusses-taking-majority-stake-in-wework-1539127641?mod=e2twd

 

 

 

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.