WeWork Wants to Become a Landlord

WeWork is creating its own $2.9 billion investment fund called ARK to buy stakes in buildings where it will be a major tenant, Bloomberg Businessweek reports. That could explain the cutbacks to our floor’s beer selection.

The two-pronged investor pitch

1. WeWork has good vibes and a strong brand. The CIO of ARK investor Ivanhoé Cambridge told Bloomberg, “People actually want to be in the office...sooner rather than later, a WeWork-branded building will be attracting other tenants the same way you will never have a vacant space next to an Apple Store.”
2. Buildings will become more valuable when they have WeWork as a tenant. If good vibes and thirsty succulents won over tech investors, a focus on curb appeal is WeWork’s play to recruit real estate investors.

Zoom out: There’s been no shortage of criticism over WeWork and its CEO Adam Neumann’s blurry arrangement as tenant and landlord. ARK looks to be both a) an effort to clear that up and b) a complex hedge against the company’s main subleasing model.

+ While we're here: The company released its quarterly financials yesterday.