The WeWork saga

Just like that, it kind of hit me that my time in Croatia may be coming to an end. If we’re lucky and my father in-law continues to make good progress, we should be out of here in about a week. Of course, I’m ready to be home, but yes there are definitely some nice parts to being out here and I’m just starting to get the hang of things.

On another note - seems like the media has been having fun reporting on WeWork’s Chapter 11 bankruptcy proceedings. I get it of course. It’s been a fascinating ride watching Neumann take WeWork to $47B and watching everything come crashing down before the failed IPO.

Of course, this is not the end of WeWork. This is likely a large strategic strategy to effectively get out of a lot of the unprofitable leases that WeWork holds. They may come back stronger than ever. They are effectively trimming all the fat off the business and while they may not nearly the foothold they once were, their financials may be in the best shape in a long time.

It will be interesting to see the downstream effects of this. I’m not a real estate expert by any means, but I can imagine commercial real estate has not been doing amazing in a lot of regions post-pandemic. I can only guess a lot of long-term leases will be coming available in the coming months.