WeWork.com as an Investment Reviewed

Humans as a species have interesting perceptions, India has a population of about 1.4 billion, yet there is still a lot of land for sale in India at rock bottom prices, China has a population of around 1.4 billion and China has Ghost cities. There’s this concept by humans, that there’s not enough to go around, scarcity is promoting to goose up prices, but you’d have to be an insider to comprehend the propaganda.

A humanity focused on solving problems doesn’t request the government solve it for them a humanity that isn’t based on fear won’t assume politicians know what’s best. What’s happened to the modern-day world is old ideas, that were regulated out of existence are now reemerging as APPs. APPS like Uber and Airbnb exist because of Government regulations. Taxis, the taxicab industry should be competitive, but it’s not, why? Government regulations! Airbnb exists because of the regulations in housing and lower interest rates which has made housing prices inflate.

Combining higher housing prices with RENTAL CONTROLS has pushed a lot of hardworking people out of the rental markets. In the modern era, it’s common to see people in their late 30s still living at home with mom and dad or sharing their apartment with someone. In many instances, 50% of what a person earns goes to paying their rent, what does this mean? This means that commercial real estate is also having the plague of inflated prices, which s the main reason in my opinion that WeWork is even considered as an investment.

The economic problem with WeWork

The problem I see with we work is that commercial space has to be profitable the instant a Businessperson rents it. Owning a business is all about cash flow and if the space you’re renting is a cause of concern for your SMALL business, it’s unlikely that WeWork will be a viable option for you. What would more than likely occur rather than allowing WeWork to take a cut of profit margin, you’re more than likely to seek alternatives, which is again a trend that’s starting to emerge especially with technology.

I point out that now that humanity is getting wiser about the limitations of government, what’s happening with technological advancements is that people are working from where ever there’s an internet connection. There are some things big businesses simply can’t do and the way I see it, WeWork has value to a particular niche of people, but as an investment, it’s primed and ready for invasion by competition if it ever became valuable.

Uber already has Lyft and what’s happening in the rideshare market is companies are letting Uber do all the leg work, people are letting Airbnb do all the heavy lifting, why pay for all the legal headaches when Uber and Airbnb can do it for you. When or if Uber becomes sustainable, that’s when everyone else moves into to take market share. Uber isn’t exactly an Amazon or APPLE it’s an APP for convenience and the only thing preventing it from being invaded are government regulations.

In Commercial real estate, there aren’t too many government regulations because business people, don’t need the government, business, the (good ones anyway) are good at bartering, most of the commercial property business people lease is negotiated, if the property is unused or isn’t being used by reliant tenants commercial property can quickly dissolve into a money pit, WeWork from my standpoint is in the way of businesses, however what I will say is that a sucker is born every day and there are instances in which WeWork can be profitable to a specific type of business.

In my opinion, WeWork is a niche, not a good investment, however if you want to invest in WeWork don’t let me stop you!