Re:The Property Industry Is Falling Out of Love with WeWork
by dylan604 on Wednesday December 19, 2018 @07:57PM
(#18721586)
Maybe, but they are just "weird" about things outside of their comfort zone. I worked for a company in a CBRE building that had lawyers, financial planners, etc types of tenants. The company I worked for was a film/video post-production company. The obstacles the building put in place to the company to move in gave every clear indication that they really did not want that company as a tenant. For example, in the raised floor machine room, they wanted smoke detectors every 3 feet because of the "fire-hazard" VTR machines represent. All of the low-voltage video cabling for SDI video signals had to be run through EMT conduit. All low-voltage CAT-5 networking cabling had to be run through conduit as well. There were many more examples of the things that other tenants would not be asked to do. Also, a $1,000,000.00 escrow account had to be opened for the entire term of the lease. These are all sorts of things that make me think the building were just trying to find the point where the owner of the company was say it's not worth it. We've all been there with jobs that we don't really want, so we try to price ourselves out of the running with an outrageous bid.
Re:The Property Industry Is Falling Out of Love with WeWork
by donedeals on Wednesday December 19, 2018 @09:46PM
(#18722090)
Most of the items you cite are code requirements. Operators like CBRE maintain buildings to class A standards that don’t allow for any violations.
The $1M is escrow is standard and par for the course and a guarantee against credit risk. Many landlords actually require a letter of credit from banks so that if your company were to go bankrupt the money wouldn’t be subject to seizure by bankruptcy courts.
Source: Work at similar landlord.
edit: spelling
The only way I see this becoming an issue is if WeWork was being shifty about taking responsibility for damage and risk caused by their clients and if they were it wasn't so much "market disruption" as "we don't want to play by the rules but still want cake"