   
 | From the Editor's Desk
Will WeWork Work Out Eventually? A comprehensive, deep analysis of the embattled startup's outlook
WeWork's biggest problem comes from not owning any real estate: without holding any buildings that WeWork is in, the core costs will never get lower since landlords have full control and purview.
It's a big game of lease arbitrage that WeWork is losing in: lease a building for 3â€"5 years, sublease individual desk and offices short-term, invest a great deal of money branding and refurbishing the properties... In the end, WeWork feels the brunt of the low occupancy rate - landlords will simply consider the entire floor leased to WeWork as "fully occupied".
WeWork has at least $47 billion worth of lease liabilities that will eventually see the co-working goliath take drastic measures. According to real-estate brokerage George Smith Partners, WeWork could be asking landlords for rent forgiveness, reductions, or some kind of lease rewriting.
Continued here
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