WeWork Bankruptcy Hits Hardest for New York-Focused CMBS Deals

Allen Matkins partner, Tony Natsis was quoted in Real Estate Capital USA regarding WeWork's November bankruptcy filing. The filing is set to impact commercial mortgage-backed securities deals linked to the flexible office space provider in New York, particularly affecting rejected leases concentrated in the city. WeWork's Chapter 11 bankruptcy strategy focuses on rejecting unexpired leases, allowing the company to reorganize and negotiate with landlords efficiently. While the bankruptcy may cause pain for some investors, it is expected to lead to a streamlined balance sheet and an improved outlook for WeWork in the long term. Tony Natsis says bankruptcy can improve the health of a balance sheet for a company in distress. “If [WeWork] has good space in a good building, they’re going to keep it. So the landlords that are already doing well with their buildings are going to be the beneficiaries of WeWork.”

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