Re:WeWork Is Raising Funds at $35B Valuation
by mi100hael on Wednesday June 13, 2018 @06:31PM
(#17307561)
Most commercial buildings are held by investors/funds who tend to own thousands of units. They probably have an in-house staff of property managers who places tenants, schedules repairs/improvements, etc. Managing co-working space would be a totally new way of doing business for these funds which represents a risk they're not currently interested in taking.
[ Parent
| on HN ]
Re:WeWork Is Raising Funds at $35B Valuation
by jonknee on Wednesday June 13, 2018 @07:36PM
(#17307959)
To be fair there is not a single commercial REIT worth more than $35B [1]. WeWork is certainly large enough to own real estate, but they want to be valued like a tech company and you can't do that if you look more like a REIT.
https://finviz.com/screener.ashx?v=111&f=ind_reitoffice&o=-m...
Re:WeWork Is Raising Funds at $35B Valuation
by mehwoot on Wednesday June 13, 2018 @08:16PM
(#17308186)
Dexus, a company that manages real estate only in Australia has $26 billion of property under management, split about 50% owned by them and 50% managing for other people. Their total portfolio is under 150 properties. That's all in a country with 20 million ish people. You could get a lot bigger than that.
But of course it wouldn't be the quickest way to grow since you'd need insane captial. If your competitive advantage is the extra return you're squeezing from the properties, makes far more sense to lease them so you can have more, rather than be buying them upfront.