WeWork is in the same business as what Hertz is in for cars.
They rent out an expensive asset (eg commercial real estate and automobiles)
Hertz has $21B in liabilities , which is largely comparized of paying financing charges for all of those Toyota Camrys they rent out.
Yet they are still profitable.
If the market tanks and rents go down, then WeWork is locked into overpriced rates. They have contracts until 2022.
Yesterday's discussion  did point out that WeWork leases from an LLC subsidiary that leases from the actual building owners. This would shelter WeWork Corp in an odd corporate structuring sort of way (similar to McDonald's making money off real estate).
Now, if property prices take a dive, I'm not sure that would impact WeWork's business all too much as their main clientele are solo entrepreneurs or small startups that couldn't otherwise afford an office fit out and/or the risk of taking on a lease. There is more value in WeWork than just the building.
At the very bottom,
> Since 2015, WeWork has also leased space in some buildings in which CEO “Adam Neumann and certain of his immediate family members hold ownership interests,”
Kind of weird, but maybe I'm missing something.
As an aside, this sort of confusion is why it's important to link to either a primary source or a good secondary source whenever possible, in my opinion. The Bloomberg article is clear on this issue, while the Business Insider article linked is just a watered-down, ambiguous summary of that article.
Is that a 100 storey skyscraper in New York? 18 of them? (I am guessing that an apartment there must cost > $1 million looking at the prices here in Barcelona).
they are a "salon" for techno-imperialists who think they are too good to stare at a computer at a library or starbucks
if they make money though, i guess they prove me wrong.