Skip to content
  • Home
  • Services
    • Audit & Attest
      • Financial Statement Audits
      • Employee Benefit Plans
      • Attestation Engagements
      • Compilations & Review
      • SOC
      • Agreed-Upon Procedures
    • Advisory
      • Transaction Advisory Services
      • Cybersecurity, Technology Risk, Privacy
      • High Net Worth Services
      • Forensic Services
      • Litigation Services
      • Management Consulting
      • Technology Services
      • Valuation Services
    • Business & Tax
      • Corporate Income Tax
      • Individual Income Tax
      • International Tax
      • State and Local Tax Compliance and Tax Minimization Services
      • Tax Planning
    • T&C Family Office Group
  • Industries
    • Construction & Real Estate
    • Healthcare
    • Manufacturing & Distribution
    • Nonprofit Organizations
    • Private Equity Firms
    • Privately-held Companies
    • Technology & Energy
  • Firm
    • Overview
    • Our People
    • Our Community
    • Templeton Group
      • PracticePro 365
      • T&C Family Office Group
      • Templeton Investigative Services
  • Careers
    • Experienced
    • Students
    • Benefits
  • News
  • Pay My Bill
  • Home
  • Services
    • Audit & Attest
      • Financial Statement Audits
      • Employee Benefit Plans
      • Attestation Engagements
      • Compilations & Review
      • SOC
      • Agreed-Upon Procedures
    • Advisory
      • Transaction Advisory Services
      • Cybersecurity, Technology Risk, Privacy
      • High Net Worth Services
      • Forensic Services
      • Litigation Services
      • Management Consulting
      • Technology Services
      • Valuation Services
    • Business & Tax
      • Corporate Income Tax
      • Individual Income Tax
      • International Tax
      • State and Local Tax Compliance and Tax Minimization Services
      • Tax Planning
    • T&C Family Office Group
  • Industries
    • Construction & Real Estate
    • Healthcare
    • Manufacturing & Distribution
    • Nonprofit Organizations
    • Private Equity Firms
    • Privately-held Companies
    • Technology & Energy
  • Firm
    • Overview
    • Our People
    • Our Community
    • Templeton Group
      • PracticePro 365
      • T&C Family Office Group
      • Templeton Investigative Services
  • Careers
    • Experienced
    • Students
    • Benefits
  • News
  • Pay My Bill
CONTACT US

What WeWork’s Jump Into Retail Means For Reits

  • Blog, Real Estate & Construction

by Stuart Eisenberg

While lots of eyes and attention remain fixed on 2017’s string of retail bankruptcies and the growth of “clicks-to-bricks” retailers, WeWork may be quietly laying the foundation for a broader move into retail real estate.

There certainly appears to be no shortage of funding momentum for the $26 billion startup, following a $4.4 billion commitment from the SoftBank Vision Fund in August that is expected to fuel global expansion.

And REITs should be watching—WeWork’s model for expansion could disrupt not only office REITs, but REITs across some unexpected sectors.

Underscoring the company’s interest in potentially extending its business model into the retail space, The Wall Street Journal reported that WeWork Property Advisors would get a seat on the Hudson’s Bay Co.’s (HBC) board after WeWork and its private equity partner Rhone Group acquired the Lord & Taylor building in midtown Manhattan from HBC in October. It has also been reported that WeWork principals have invested in a retail technology startup and that several of the real estate company’s recent hires hail from an online electronics retailer.

Behind the Lord & Taylor Buy

One factor that makes the Lord & Taylor deal notable is the $850 million price tag. The property sold for 30 percent more than its appraised value last year. While the property’s location likely partially contributed to the deal value, it’s no secret that there’s a greater demand for spaces that can be converted to alternative uses, and the building’s flexibility might have also driven up the price. This suggests REITs that own buildings that can be readily converted to alternative use could see a bump in valuation based on an assumption that the highest and best use value exceeds the value based on the existing use. Retailers with flexible space in prime markets, where demand remains high, are likely to see the greatest benefit.

This trend isn’t limited to retail, though. On the hospitality front, WeWork has experimented with nightly rentals in its co-living space in lower Manhattan. During a recent panel at the Urban Land Institute fall meeting moderated by WeWork’s Liz Burow, several industry leaders pointed to the growing emphasis on short-term lease arrangements across industries. Panelists noted that space flexibility is now playing a key role in growth trajectory for many types of companies, with flexible lease terms allowing for the development of new groups within a company and greater experimentation with short-term projects.

Adaptability is the name of the game for a huge variety of tenants—think retailers, food pop-ups and boutique hotels, but also health care providers, as the care continuum expands far outside the walls of traditional hospitals. For REITs, this means potentially baking in greater flexibility to lease-term length in sectors beyond offices, and further blurring the lines in large mixed-use spaces. These changes could have significant implications for REITs’ maintenance and property management needs, as well.

When it comes to the co-everything movement, We(will be) Watching.

This article originally appeared in BDO USA, LLP’s “Construction Monitor Newsletter (Winter 2018). Copyright © 2018 BDO USA, LLP. All rights reserved. www.bdo.com

Categories
  • Agribusiness
  • Assurance, Advisory & Review
  • Audit & Attest
  • Blog
  • Business and Tax
  • Business Consulting & Corporate Compliance
  • Corporate Income Tax
  • Current Opportunities
  • Cybersecurity, Technology Risk, Privacy
  • Employee Benefit Plan
  • Employee Benefit Plans / 401(k)
  • Healthcare
  • High Net Worth Individuals
  • High Net Worth Services
  • Individual Income Tax
  • Industries
  • Manufacturing & Distribution
  • Newsletter Articles
  • Newsletters
  • Nonprofit
  • Press Releases
  • Privately Held Companies
  • Professional Services
  • Real Estate & Construction
  • Retail
  • Services
  • Specialty Tax Services
  • State and Local Tax Complianc
  • T&C Family Office Group
  • Tax Planning
  • Tax Planning & Compliance
  • Technology
  • Uncategorized
  • Valuation Services
  • Valuation Services

SHARE THIS ON:

RELATED POSTS

Startup costs and taxes: What you need to know before filing

The U.S. Census Bureau reports there were nearly 447,000 new business applications in May of 2025. The bureau measures this by tracking the number of

Read More »

4 reasons why avoiding probate is a smart estate planning move

When planning your estate, one of the smartest strategies you can adopt is to minimize or avoid probate. Probate is a legal procedure in which

Read More »

Give members reasons to continue supporting your nonprofit

Reliable income streams are worth their weight in gold. Unfortunately, these days some people may be feeling some economic uncertainty and think twice about renewing

Read More »

Contact Us

WEST PALM BEACH
Esperante Building
222 Lakeview Avenue
Suite 1200
West Palm Beach, FL 33401
(561) 798-9988
Fax: (561) 798-4053

FORT LAUDERDALE
The Main
201 East Las Olas Boulevard
Suite 1650
Fort Lauderdale, FL 33301
(954) 333-0001
Fax: (954) 765-0719

Twitter Facebook Instagram Youtube Linkedin
© 2025 Templeton & Company. All Rights Reserved. Website by Weber & Co.
Services
  • Audit & Attest
  • Advisory
  • Business & Tax
  • T&C Family Office Group
  • Pay My Bill
  • Audit & Attest
  • Advisory
  • Business & Tax
  • T&C Family Office Group
  • Pay My Bill
Industries
  • Construction & Real Estate
  • Healthcare
  • Manufacturing & Distribution
  • Nonprofit Organizations
  • Private Equity Firms
  • Privately-held Companies
  • Technology & Energy
  • Construction & Real Estate
  • Healthcare
  • Manufacturing & Distribution
  • Nonprofit Organizations
  • Private Equity Firms
  • Privately-held Companies
  • Technology & Energy
Firm
  • Overview
  • Our People
  • Our Community
  • Templeton Group
  • Terms & Conditions
  • Overview
  • Our People
  • Our Community
  • Templeton Group
  • Terms & Conditions
Careers
  • Experienced
  • Students
  • Benefits
  • Experienced
  • Students
  • Benefits