Chapter
The Real Estate Business of SoftBank and WeWork
18:55 - 25:50 (06:55)
Discussing SoftBank's plan to invest in WeWork's expansion of 700,000 apartments, the speaker implies that the success of the business depends on its ability to convince renters to pay a premium price for the WeWork experience. However, the real estate business has real costs and must have spending discipline to maintain returns.
Clips
The success of a real estate business hinges on maintaining spending discipline to deliver lower vacancy rates and higher rents.
18:55 - 21:57 (03:02)
Summary
The success of a real estate business hinges on maintaining spending discipline to deliver lower vacancy rates and higher rents. This involves measuring the ability to extract more rent and less vacancy from apartment units while creating a national brand and experience with financial discipline.
ChapterThe Real Estate Business of SoftBank and WeWork
EpisodeE92: Adam Neumann's second act, a16z's $350M bet, housing policy, Inflation Reduction Act & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The investment in large-scale real estate apartments could bring in substantial revenue, even with a slight increase in rent for an improved living experience.
21:57 - 25:50 (03:53)
Summary
The investment in large-scale real estate apartments could bring in substantial revenue, even with a slight increase in rent for an improved living experience. This revenue could amount to billions of dollars with 700,000 apartments, making it an attractive investment for publicly traded investment managers.