Is WeWork in trouble because they're not charging their customers enough/they paid too much to rent or are they in trouble because they blow way too much money on back-office SGA? I ask because they seem to charge a lot and have mostly full buildings.
-
It’s a pretty crappy business model in general, and in this case the public market seems to have worked by figuring that out while the best and brightest didn’t. My only experience with Regis was in Shenzhen for a month; well-staffed (China, after all) but just green tea no beer
I'm not sure if the business model is that crappy. It just shouldn't be sold as a high-growth high barrier to entry tech company with some sort of amazing network effects moat.
-
-
I just mean it’s a bet that the spread between long-term and short-term rents will be better than the cost of capital. That will be true, until it isn’t, and there’s no barrier to entry in the meantime.
-
It's a bit more than that. WeWork has a brand, it has scale (my membership works in NYC and Tokyo) and they have purchasing power too with so many locations... They're just poorly managed. All of real estate is just the spread between short term and long-term.
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.