The rise of the co-working business model employed by companies like WeWork poses"a new type of potential financial stability risk," Boston Federal Reserve president Eric Rosengren said in a speech at New York University on Friday. The office providers often serve smaller and more vulnerable companies, which could cause a mass exodus from commercial real estate should a recession hit, the president said.
The rise of the co-working business model employed by companies like WeWork poses"a new type of potential financial stability risk," Boston Federal Reserve president Eric Rosengren said in a speech at New York University on Friday. The office providers often serve smaller and more vulnerable companies, which could cause a mass exodus from commercial real estate should a recession hit, the president said.
This seems unethical to me. They are announcing a plan that has the potential to bring down the economy. They are focusing on their profits and should be worried more about the economy. WortylkoLori UCBAMGMT1050
Exactly as I’ve been saying in previous posts. Guess who’s stuck with long term leases in the next recession? Reminds me of GE with long term care liabilities.
From article... “WeWork alone has more than $47 billion in lease liabilities and is the biggest tenant in New York City, central London, Denver, and Chicago.” That’s a problem.