Ever since WeWork mentioned the potential of bankruptcy and CEO David Tolley’s desire to “renegotiate nearly all our leases,” landlords have likely been sweating and for good reason, according to lawyers who have spoken with GlobeSt.com. The options range from unappetizing to bad.

The mention of bankruptcy “is one of the primary debtor tenant negotiating tactics,” says John Sparacino, a principal with McKool Smith’s Bankruptcy Litigation practice area. “You’re going to get really screwed if I file bankruptcy. Do you want to work out something a little better for you or do you want to wait for bankruptcy? And landlords, unless someone puts down a big security deposit or there’s a significant personal guarantee behind the lease, are really exposed.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Erik Sherman



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.