[sjaknanxnnx]

I think saying that the rent is market rate doesn’t really eliminate the transfer of value away from WeWork shareholders. First, you can’t exactly calculate market rate, and rates are normally determined by a negotiation between multiple parties. When you own a rental property, you take on a risk of vacancy while seeking tenants who pay your idea of market rate. You will face the choice of taking a lower rent vs. staying vacant and holding out for more. If Adam Neumann is getting reliably paid a healthy market rate by WeWork, and WeWork is taking the hit from the vacancies, he’s getting one over on WeWork’s shareholders. Lease obligations are going to be paid out before equity. Perhaps that’s the whole point of the arrangement.