How founders are negotiating with WeWork in the middle of the pandemic - Business Insider

out of a Washington WeWork, with another office in Minneapolis run by Industrious. That office company offered to charge $250 monthly to hold the space and waive the $2,300 monthly rent, and they could reevaluate after 80 days – earning Solheim's "lifelong loyalty."

Now, Solheim's weighing declining to pay WeWork – but he's worried about the legal and credit risk of doing that. Solheim may opt to pay a $5,000 fee to get out of the WeWork lease instead. "Typically, force majeure provisions don't excuse the payment of rent," said Stephanie Friese, an Atlanta attorney with Chamberlain Hrdlicka who specializes in commercial real estate issues.

The typical protections afforded renters are also unlikely to apply, Friese said, due to a provision in WeWork's membership agreement that specifically defines the relationship as a service, rather than tenancy: The service provider framing also helps WeWork avoid some of the obligations typical landlords face, especially if state or local governments don't consider membership fees when announcing mandatory rent or mortgage relief measures.

Where WeWork would fit in those discussions is unclear, but Friese agreed that the company's decision to keep every one of its North American locations open during the pandemic could open it up to legal scrutiny.The CEO of another venture-backed flexible office operator, Knotel, has said one-third of its members have, in what could be a proxy for how flexible-space members are seeking to negotiate.

Only Go-Getters can survive in today's world -Ethics & Goodwill key to a Worthy lifestyle

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Starbucks prepares to reopen stores closed in coronavirus pandemic - Business InsiderStarbucks expects to resume normal operations, ending its Catastrophe Pay program and $3 pay bump for workers, in June. Starbuck's patrons are not dumb. -2020 is a loss year for many businesses, especially food and beverage. Sh*t happens. They'll take a write down and be back at full swing in 2021 Capitalists stay home!
Source: BusinessInsider - 🏆 729. / 51 Read more »

The coronavirus pandemic could be the death of the commuter rush hour - Business InsiderTransport use has collapsed during the coronavirus pandemic with home working now the norm in many industries. Hate commuting He guys - just curious, why are you ignoring this awful story? Not having office space overhead is huge... could save small businesses $50,000-$100,000 a month just not having to pay for space and infrastructure
Source: BusinessInsider - 🏆 729. / 51 Read more »

Verizon adopts virtual tech for in-home assistance amid pandemic - Business InsiderThe coronavirus has forced Verizon to adopt virtual tech to replace home visits as it looks for new ways to continue performing essential operations.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Coronavirus: US, Russia, China, UK to sign global truce during pandemic - Business InsiderEmmanuel Macron says the UK, US, and China have already agreed to a global ceasefire amid the coronavirus pandemic. How do you feel about a 10% interest in a resort in Florida? Good News SpanishDan1 No. FRANCE has sought to agree it... TRUMP isn't being consulted
Source: BusinessInsider - 🏆 729. / 51 Read more »

Muse, Ebury, Salary Finance rush to help customers amid the pandemic - Business InsiderMuse, Ebury, and Salary Finance have all launched initiatives to help SMBs and employees amid the fallout from the coronavirus pandemic.
Source: BusinessInsider - 🏆 729. / 51 Read more »