News for hackers. Stuff that matters.

A comment on WeWork’s Back Is Against a Wall. Parent comment

Re:WeWork’s Back Is Against a Wall by gamblor956 on Tuesday September 17, 2019 @03:06PM (#20998934)
They probably signed triple-net leases with WeWork, meaning that WeWork pays rent, property taxes, utilities, and upgrades/maintenance.

If WeWork walks away, they leave behind nice offices that the landlord can rent out to another tenant with minimal investment beyond a few months lost rent (that could theoretically be recouped from WeWork).

[ Parent | on HN ]
Re:WeWork’s Back Is Against a Wall by kjs3 on Tuesday September 17, 2019 @04:38PM (#20999821)
Yup. My wife worked in commercial real estate (contracts and billing, before the crash in that biz) and she surmised exactly the same thing.

I think most real estate folks learned their lessons in the dot-com bust. Lot's of folks were making stupid office space deals with tech companies in return for warrants, etc., which ended up being worth less than nothing.

[ Parent | on HN ]