7 ms·

Isn't that We's end goal though? To get billion dollar companies like Microsoft, Stripe, etc. as tenants. People that don't really want to deal with running an

by jtonz 7y ago

Isn't that We's end goal though? To get billion dollar companies like Microsoft, Stripe, etc. as tenants. People that don't really want to deal with running an entire building when they can just pay someone else to do it.

arbitrary_name 7y ago
Yes - but that doesn't indicate that a) the demand exists for such a solution or b) that they will successfully execute on said demand.
abakker 7y ago
That is already available. Ever heard of Cushman and Wakefield?
- dagw 7y ago
  That is already available. Of course, but I assume that WeWork offered them a better deal.
  - cylinder 7y ago
    So WeWork is a property management company which charges less than established players in a very mature market. Explain the valuation then.
    - dagw 7y ago
      Something something disruptive technology driven paradigm shift and then they'll make it up in volume :)
deleted 7y ago
[deleted]
manigandham 7y ago
No. Companies that big have the resources and stability do it themselves, and want control over their space as well. They have no need for a middleman other than real-estate brokers or construction companies to actually get the space.
delfinom 7y ago
Counterpoint: Google now outrights owns a absurd amount of buildings outright on Manhattan's West Side near SoHo. These big companies have so much money, that they stand to make even more money just holding the damn real estate for all they care if they end up not using it. It's the same as a individuals buy vs. rent scenario for a house. Sure, rent may be cheaper, but there are long term pros just holding the property yourself if you can afford it.
- C1sc0cat 7y ago
  Which makes sense If you run your own investments / pensions your going to want to have some commercial property investments (normally by having a certain % in funds / REITS)

7 ms·

Isn't that We's end goal though? To get billion dollar companies like Microsoft, Stripe, etc. as tenants. People that don't really want to deal with running an

by jtonz 7y ago

arbitrary_name 7y ago
Yes - but that doesn't indicate that a) the demand exists for such a solution or b) that they will successfully execute on said demand.
abakker 7y ago
That is already available. Ever heard of Cushman and Wakefield?
- dagw 7y ago
  That is already available. Of course, but I assume that WeWork offered them a better deal.
  - cylinder 7y ago
    So WeWork is a property management company which charges less than established players in a very mature market. Explain the valuation then.
    - dagw 7y ago
      Something something disruptive technology driven paradigm shift and then they'll make it up in volume :)
deleted 7y ago
[deleted]
manigandham 7y ago
No. Companies that big have the resources and stability do it themselves, and want control over their space as well. They have no need for a middleman other than real-estate brokers or construction companies to actually get the space.
delfinom 7y ago
Counterpoint: Google now outrights owns a absurd amount of buildings outright on Manhattan's West Side near SoHo. These big companies have so much money, that they stand to make even more money just holding the damn real estate for all they care if they end up not using it. It's the same as a individuals buy vs. rent scenario for a house. Sure, rent may be cheaper, but there are long term pros just holding the property yourself if you can afford it.
- C1sc0cat 7y ago
  Which makes sense If you run your own investments / pensions your going to want to have some commercial property investments (normally by having a certain % in funds / REITS)