WeWork files for bankruptcy protection

[Michael Baum]

WeWork has filed for bankruptcy protection (Chapter 11) a few days ago. This was the bastion of super cool arbitrage in commercial real estate. Down for the count.

I am only posting this because WeWork has been held up as the successful arbitrage business. I have been watching it for a while and it has always been a bit suspect with ups and downs. The pandemic really sealed it's fate.

https://www.cnn.com/2023/11/06/business/wework-bankruptcy/in...

Now, I am not comparing this to STR arbitrage that gets discussed here but there are some correlations, just on a much bigger scale. Gotta be careful out there. Even with billions in backing.

[Michael Baum]

Well, I don't think going public killed the business. I think there was a combination of things. The pandemic did a number on them for sure. No one going into the office, no money being paid for rents...

The rented millions of square feet of space all over the country and the world. 30 people probably wouldn't cut it. :)