WeWork’s Back Is Against a Wall

Re:WeWork’s Back Is Against a Wall by Someone on Tuesday September 17, 2019 @02:26PM (#20998500)

Owners of office buildings aren’t stupid. If WeWork created a special entity to rent each building, rent would go up significantly, or the landlord would require the parent company to guarantee that rents would be paid.

Or did WeWork pay for refurbishing the building, so that, if they stop renting early, the building’s owner ends up with a better building than what it had before?

[ Parent | on HN ]

Re:WeWork’s Back Is Against a Wall by jdross on Tuesday September 17, 2019 @02:56PM (#20998845)

The latter. They invest heavily in FF&E and the landlord gets to keep the improvements no matter what

[ Parent | on HN ]

Re:WeWork’s Back Is Against a Wall by Glibaudio on Wednesday September 18, 2019 @01:56AM (#21002698)

We will have to leave the glass walls and wood floors, but the other stuff should be movable and liquidated to help We's balance sheet.

"FF&E are movable furniture, fixtures, or other equipment that have no permanent connection to the structure of a building or utilities. These items depreciate substantially but definitely are important costs to consider when valuing a company, especially in liquidation."

https://en.wikipedia.org/wiki/Furniture,_fixtures_and_equipm...

[ Parent | on HN ]

Re:WeWork’s Back Is Against a Wall by Someone on Tuesday September 17, 2019 @05:06PM (#21000086)

Then, the mother company can indeed get out fairly easily, at the price of some goodwill, making it, IMO, a (possibly only slightly) less risky investment.

[ Parent | on HN ]