Eric Sussman Adjunct professor of accounting and real estate, UCLA; Founding partner, Clear Capital LLC; Los Angeles
Will the attitude of landlords and the office market toward WeWork change after everything we’ve learned?
No question. I have no doubt that WeWork’s reputation will absolutely tank. It has to. If you look at it from a landlord’s perspective, similar to how they underwrite, they look for the three C's — credit, collateral and character. If you were to analogize this to the landlord market, well, what’s [WeWork’s] credit? That has gone down. Their collateral is now similarly downgraded. And thirdly, character. There are a lot of stories coming out about Mr. Neumann. I know he stepped down, but character seems to be lacking in a number of areas.
[BN: 10/6/2019]
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