<ul class="summary-list"><li><strong>We spoke to eight people in the flex office space about their predictions for 2020. We asked about the potential for industry consolidation and how demand is shaping up for next year. </strong></li><li><strong><a href="https://www.us.jll.com/en/flexible-space">JLL has predicted that a full 30 percent of office space will be flexible by 2030.</a></strong></li><li><strong>Several said they expected a shift in design focus for flex offices, particularly those offering coworking spaces, and that the cliched idea of 2010s office design will make way for more practical design. </strong></li><li><strong>They observed that growth in single-desk coworking has largely flatlined, and one noted that VC money has dried up for the space. Meanwhile, a crowded field is pinning its hopes on growth in demand for flex-space from big companies.</strong></li><li><strong><a href="https://www.businessinsider.com/prime">Visit BI Prime for more stories.</a></strong></li></ul><p>Over the last 10 years, WeWork brought coworking and flex-offices to the mainstream. And in 2019, a <a href="https://www.businessinsider.com/heres-the-latest-wework-news-2019-6">failed IPO</a> brought WeWork to the front page. </p><p>The subleasing model WeWork is known for was flagged by <a href="https://markets.businessinsider.com/news/stocks/wework-co-working-business-model-negative-economic-impact-eric-rosengren-2019-9-1028541749">the Boston Federal Reserve</a> as a potential systemic financial stability risk. And <a href="https://www.businessinsider.com/sam-zell-bashes-wework-2019-9">real estate magnate Sam Zell</a> based the approach, saying that every company that had tried it has eventually gone broke. </p><p>WeWork, which slashed jobs and is desperately looking to shed businesses it bought just months ago, has had a high-profile rise and fall. But there's still a constellation of other players as well as real estate incumbents that say the fundamental flex-office model is sound. </p><p>"WeWork showed the world that if you give people the option of flexibility, people want it and will pay for it," Jonathan Wasserstrum, chief executive and cofounder of online marketplace and brokerage company SquareFoot, told Business Insider.  </p><p>The industry was built on expectations for rapid growth -<a href="https://www.us.jll.com/en/flexible-space">JLL has predicted that 30% of office space will be flexible by 2030,</a> up from just 5% now.</p><p>We spoke to eight executives in the flex office space about their predictions for 2020. We asked them if the industry is heading for consolidation, what approaches have the greatest chance of success, and if there's any continued WeWork fallout.</p><p>They observed that growth in single-desk coworking has largely flatlined, and one noted that VC money has dried up for the flex space. Meanwhile, a crowded field is pinning its hopes on growth in demand from big companies.</p><h2><strong>The WeWork Effect</strong></h2><p>While WeWork remains one of the two largest flex office providers <a href="https://www.businessinsider.com/weworks-largest-competitor-iwg-wants-to-expand-to-30000-locations-2019-12">(veteran IWG is the biggest)</a>, some flagged that its size is only a blip in the larger flex office landscape. </p><p>"WeWork is 3 percent of the global market, but they make 99 percent of the noise," Brian Dice, cofounder and CEO of flex office consultant and research company OfficeNetwork, said. </p><p>WeWork investors were spooked by its wide losses, governance issues, and lack of a clear path to profitability. After WeWork's IPO imploded, it needed a SoftBank bailout to avoid running out of cash.</p><p>"I think most landlords are furiously trying to figure out what this all means," Jamie Hodari, CEO and cofounder of coworking startup Industrious, told Business Insider in an November interview.</p><p>Some of the experts we spoke to said that landlords are avoiding doing business with coworking operators, while others said that this period of caution is already passing.</p><p>"Some refuse to deal with it," SquareFoot's Wasserstrum said.</p><p>Bill Bennett, CEO and founder of Novel Coworking, said: "a lot of them have lost a lot of money on the value of the leases they've done with their third-party coworking operators." </p><p>But some coworking execs say that the WeWork drama hasn't impacted demand, and some WeWork competitors are actually benefiting from it. </p><p>"I have heard that some competitors of ours that overlap with WeWork for target clients are getting more demand," said Mark Hemmeter, CEO and founder of coworking franchise Office Evolution.  </p><p>Still, WeWork's rapid expansion and high-profile stumble has prevented the industry from "setting what a true market equilibrium is," said SquareFoot's Wasserstrum. </p><p>WeWork's new status as a parable of the risks of large amounts of venture funding may also keep venture money away from flexible offices.</p><p>"The story for 2020 is that demand continues to rapidly rise and VC funding is dead to the sector," Novel Coworking's Bennett said.  But Bennett believes that private equity, sovereign wealth funds, and conventional real estate will rise to replace VC funding. </p><p>Ben Munn, managing director of flex space at office behemoth JLL, thinks that funding won't evaporate, but it will become more discerning.</p><p>"I think the level of awareness and understanding has just gone through the roof in the last few months," Munn said. "Investors are more savvy about the things they need to look at to make those decisions."  </p><h2><strong>A focus on enterprise customers</strong></h2><p>While WeWork has made financiers and landlords more conscious about potential risks of the lease arbitrage model, execs we spoke to said that big companies are still interested in the option of flexible space. </p><p>"From a corporate occupier standpoint, the clients that we do business with, they're very bullish on the flex office world,"  OfficeNetwork's Dice said.</p><p>JLL's Munn agrees, highlighting <a href="https://www.fnlondon.com/articles/hsbc-leases-more-than-1000-wework-desks-in-waterloo-20190620">HSBC's 1000-desk deal with WeWork this June</a> as just one indicator of how flex-offices has changed the way corporate real estate is done. </p><p>"It will continue to be bigger and bigger part of the way that corporate portfolios are managed and delivered," Munn said.</p><p>The executives we spoke to cited everything from tax rules that bring operating leases onto the balance sheet to the highly uncertain and rapidly changing nature of the business world as reasons for this shift.  </p><p>While some expect these corporate and enterprise customers to sign master service agreements with one or a few providers, cutting down the time and effort required to negotiate and approve deals in new buildings, OfficeNetwork's Dice said that this approach can actually cost a lot of money. </p><p>"What we have found when we're working with those companies, is that when they get to the point of not looking at the marketplace, they're overspending by 20 to 30 percent," Dice said. "That ease of use is expensive."</p><p>Hodari from Industrious said that big deals can come with big concentration risk, and potentially big costs. </p><p>"That's the part of the industry that requires pricing to a loss," Hodari said, explaining that companies catering to this size are "subsidizing the product in order to get revenue growth."</p><p>Hodari and Novel Coworking's Bennett both expect growth in demand from mid-size companies, while Bennett said that desk-rental - meaning traditional coworking -has flatlined. Others agree that traditional coworking may be oversaturated. </p><p>"I'm less bullish about the coworking," Jim Underhill, CEO of tenant-side brokerage Cresa, said. "I think that may have already been flooded."</p><p>But Office Evolution's Hemmeter said that his business has not seen any slowing in demand on the coworking side. He highlighted the importance of <a href="https://www.businessinsider.com/as-coworking-booms-firms-may-shutter-specialize-or-merge-2019-8">segmentation to focus on specific customer subsets</a>.</p><h2><strong>Management partnerships will become the norm</strong></h2><p>2020 will see landlords making firm decisions about whether to avoid or embrace flex offices. While many have already been making decisions about the space, WeWork has forced their hands. </p><p>"There are some very thoughtful landlords, but no one has a crystal ball," Industrious's Hodari said. </p><p>Many said landlords will turn to managed lease partnerships and managed agreements, where operators share revenue with the landlord after a certain point, instead of operators simply paying a lease and keeping any upside from re-renting space out. <a href="https://www.businessinsider.com/wework-rival-industrious-raises-80-million-property-management-profit-2019-8">Hodari's Industrious </a>and <a href="https://www.businessinsider.com/convenes-ceo-explains-flex-space-financials-metrics-2019-9">competitor Convene</a> are making big bets on this play.</p><p>"One of the biggest trends is the rise of the management agreement between owner and operator," Charlie Morris, practice leader for commercial real estate company Avison Young's flexible office solutions. He cited <a href="https://www.businessinsider.com/wework-47-billion-and-4-billion-lease-disparity-dangerous-recipe-2019-8">WeWork's large lease obligations as one of the factors</a> behind this change. </p><p>A management arrangement means landlords burden more of the risk and more of the potential revenue upside, while significantly decreasing balance-sheet risk for the operator, according to Cresa's Jim Underhill. Some landlords are bringing in branded solutions, while others are partnering with operators to create white-labelled providers specific to a landlord's own portfolio. </p><p>Other landlords, such as <a href="https://www.businessinsider.com/we-got-a-look-at-tishman-speyers-nyc-coworking-space-2019-11">Tishman Speyer with its Studio brand</a>, are cutting out coworking operators entirely. But that can be tough for landlords that don't have much experience with actually running a coworking space. </p><p>"It's difficult for landlords who are more asset-management or investment oriented to operate a business," JLL's Munn said.  </p><h2><strong>A focus on practical design </strong></h2><p>Several people we talked to said they expected a shift in design focus for flex-offices, particularly those offering coworking spaces, and that the cliched idea of the 2010s aesthetic will make way for more practical and pragmatic design. </p><p>"People built some pretty cool-looking offices that were all open floor plan environments that were excruciating to work in," Industrious's Hodari said. </p><p>"A water slide, a cool neon art installation, or anything else can't fundamentally change whether somewhere is a productive work environment," Hodari said. "The whole market has moved very quickly to obsessing not on aesthetic design but on functional design."</p><p>Hodari thinks that we will continue to see office providers move towards the sorts of designs and aesthetics that retain customers, instead of merely being eye-catching.</p><h2>Outlook for consolidation </h2><p><a href="https://www.businessinsider.com/as-coworking-booms-firms-may-shutter-specialize-or-merge-2019-8">With some history of consolidation in the space</a>, operators may look to M&amp;A as either a way to get paid for their equity or as a way to quickly grow. </p><p>"There are two real ways to cash out," OfficeNetwork's Brian Dice said. "You can go public, but smaller providers aren't going to do that. Or you can can be bought out." </p><p>Dice highlighted that only WeWork and IWG seem like they'd be in a position to acquire any of the other brands, and that with <a href="https://markets.businessinsider.com/news/stocks/wework-to-sell-managed-by-q-less-than-purchase-report-2019-12-1028776142">WeWork shuttering or looking to unload prior acquisitions at huge discounts, it is unlikely to acquire anything more</a>. </p><p>SquareFoot's Jonathan Wasserstrum said that we are probably near the beginning of consolidation, but that it might not happen in 2020.</p><p>But JLL's Ben Munn saying that large-scale consolidation is unlikely from operators in the space without some sort of economic downturn. And if we do see consolidation, it will likely come from companies outside of the flex-office space. </p><p>"We can look forward to some external players in parallel industries such as hospitality who are interested in entering the space," Munn said. </p><p>"We are still in mode 1.0 in the development of the market," he added. </p><ul class="read-more-links"><li><strong>Read more:</strong></li><li><a href="https://www.businessinsider.com/employees-inside-adam-neumanns-wework-reveal-a-wild-culture-2019-9">Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked it</a></li><li><a href="https://www.businessinsider.com/defining-proptech-with-metaprop-as-investment-and-eyeballs-surge-2019-11">Proptech is getting a ton of attention, but its exact definition is hard to pin down. Co-founders of a big VC in the space spent 18 pages of their book trying to explain it.</a></li><li><a href="https://www.businessinsider.com/weworks-largest-competitor-iwg-wants-to-expand-to-30000-locations-2019-12">IWG's CEO told us the flex-office company is taking cues from McDonald's and betting on explosive franchising growth to get to 30,000 locations</a></li><li><a href="https://www.businessinsider.com/squarefoot-hires-former-savills-president-michaeel-colacino-2019-11">Fresh off a $16 million funding, office space startup SquareFoot just hired a Savills veteran who brokered mega New York real estate deals</a></li></ul> <p class="tagline"><a href="https://www.businessinsider.com/intelligence/40-big-tech-predictions-for-2019?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=wework&amp;itm_campaign=40-big-tech-predictions-for-2019-2"></a></p>

We asked 8 flex-office execs what to expect in 2020: they're ditching neon sign decor and pinning their hopes on enterprise customers

<p>Good morning! This is the tech news you need to know this Monday.</p><ol><li><strong><a href="https://www.businessinsider.com/google-making-smart-debit-card-2020-4?r=US&amp;IR=TIR=T">Google is working on physical and virtual debit cards as it looks to catch Apple's lead in the fintech space</a>.</strong> <a href="https://techcrunch.com/2020/04/17/google-card/">TechCrunch</a> reports that Google is working on physical and virtual debit cards which would link to an associated checking account.<a href="https://www.businessinsider.com/coronavirus-stimulus-payments-checks-under-attack-by-robocalls-scams-data-2020-4"></a></li><li><strong><a href="https://www.businessinsider.com/uk-future-fund-government-loans-startups-coronavirus-2020-4">The UK has greenlit a £250 million rescue package to stop thousands of startups collapsing during COVID-19</a>.</strong> Startups can apply for government cash, but must match taxpayer money with funding from private investors.</li><li><strong><a href="https://www.nytimes.com/2020/04/17/technology/bill-gates-virus-conspiracy-theories.html?smid=tw-nytimes&amp;smtyp=cur=cur">Conspiracy theories blaming Bill Gates for the coronavirus pandemic are exploding online</a>.</strong> A New York Times analysis found more than 16,000 Facebook posts linking Gates with the virus, as well as 10 YouTube videos espousing the conspiracy theories that had garnered 5 million views.</li><li><strong><a href="https://www.businessinsider.com/amazon-thermal-cameras-warehouses-to-scan-for-fevers-faster-2020-4">Amazon is installing thermal cameras at warehouses to scan employees for fevers</a>.</strong> Cases of the virus have been reported among staff at more than 50 of Amazon's US warehouses, and working employees have expressed safety concerns. </li><li><strong><a href="https://www.businessinsider.com/babylon-health-furloughs-staff-cuts-coronavirus-economic-fallout-covid19-2020-4?r=US&amp;IR=TIR=T">$2 billion telehealth unicorn Babylon Health has furloughed 5% of its staff in response to COVID-19, Business Insider has learned</a>.</strong> Babylon Health said it had seen an increase in demand for some services during COVID-19, but other parts of its business needed to be 'paused.'</li><li><strong><a href="https://www.businessinsider.com/hiring-software-startup-greenhouse-lays-off-120-industry-pains-2020-4?r=US&amp;IR=TIR=T">Buzzy recruiting-software startup Greenhouse cut close to 30% of its workforce, making it the latest in the industry to suffer as hiring across the country comes to an abrupt halt</a>.</strong> Greenhouse Software confirmed the news in an emailed statement to Business Insider, adding that the cuts largely affected its sales and marketing teams. </li><li><strong><a href="https://www.businessinsider.com/airbnb-laid-off-most-of-its-contract-workers-over-zoom-2020-4?r=US&amp;IR=TIR=T">Airbnb laid off most of its contractors and postponed summer internships during a Zoom Q&amp;A with the company's CEO Brian Chesky</a>.</strong> An Airbnb contractor told Business Insider that many people were caught off guard by the announcement, which came during Chesky's weekly Q&amp;A.</li><li><strong><a href="https://www.businessinsider.com/startup-valuations-drop-30-per-cent-coronavirus-2008-2020-4?r=US&amp;IR=TIR=T">Startup valuations at Series A are likely to compress by between 22% and 33% in the second quarter of 2020 due to the coronavirus pandemic, new analysis shows</a>.</strong> US figures from Eddie Ackerman, head of financial analysis at Thomvest Ventures, indicate that pre-money startup valuations will drop, based on analysis of companies during the global financial crisis in 2008. </li><li> <strong style="color: #222222;"><a href="https://www.businessinsider.com/jll-cuts-some-wework-cleaning-staff-response-to-coronavirus-slowdown-2020-4">Some of WeWork's outsourced cleaners have lost their jobs — even as the coworking giant keeps offices open and charges members for space they can't use</a>.</strong> WeWork cleaning staff were laid off by JLL, the publicly traded real estate company to which the coworking giant outsourced maintenance in December.</li><li><strong><a href="https://www.businessinsider.com/bill-gates-was-storing-food-for-years-anticipating-a-pandemic-2020-4?r=US&amp;IR=TIR=T">Melinda Gates said in an interview with BBC Radio on Thursday that she and her husband, Bill, had been storing food in their basements for years in anticipation of a pandemic or other disaster</a>.</strong> The couple speculated on a possible lack of clean water and food during a pandemic and prepared accordingly.</li></ol><p>Have an Amazon Alexa device? Now you can hear <keyword id="9070519" type="UNKNOWN" weightage="60" keywordseo="10-things-in-tech">10 Things in Tech</keyword> each morning. Just search for "Business Insider" in your Alexa's flash briefing settings.</p><p>You can also <a href="https://newsletter.businessinsider.com/join/free">subscribe to this newsletter</a> here — just tick "10 Things in Tech You Need to Know."</p>Read the original article on <a href="https://www.businessinsider.com/10-things-in-tech-you-need-to-know-today-april-20-2020-4">Business Insider</a>

10 things in tech you need to know today

<p>Recruiting for private-equity associates is looking a whole lot different this year. As Reed Alexander and Casey Sullivan reported, private-equity firms and headhunters are backing off from going after young investment bankers in their first few weeks on the job — and <a href="https://www.businessinsider.com/private-equity-associate-recruiting-timeline-kickoff-pandemic-oncycle-2020-9">setting brand new timelines for the ultra-competitive process.</a></p><p>It's a big reversal after years of one-upping to nab top talent out of investment banks. PE associate <a href="https://www.businessinsider.com/private-equity-firms-are-recruiting-associates-already-for-2021-2019-9">recruiting had started in mid-September last year</a>, marking its earliest-ever kickoff. </p><p>Speaking of recruiting, we've also assembled an interactive database of <keyword id="42111" type="COMPANY" weightage="60" keywordseo="Wall-Street">Wall Street</keyword> recruiters that you can browse by specialty. You can check it out here: </p><h3><a href="https://www.businessinsider.com/best-recruiting-firms-top-headhunters-wall-street-jobs-buyside-sellside-020-9">Search top Wall Street headhunters for banking, hedge funds, and private equity</a></h3><p>More below on the hiring track record of <a href="https://www.businessinsider.com/wells-fargo-ceo-scharf-black-talent-remark-analysis-hires-diversity-2020-9">Wells Fargo's CEO;</a> a big trading <a href="https://www.businessinsider.com/barclays-distressed-credit-lost-60-million-in-first-half-2020-9">loss</a> at Barclays; what Facebook is <a href="https://www.businessinsider.com/facebook-farley-building-rent-nyc-office-leasing-market-vacancies-discounts-2020-9">paying in rent</a> in its huge new NYC office (and what that says about the ailing leasing market); and a <a href="https://www.businessinsider.com/top-alternative-investments-executives-wealth-goldman-merrill-morgan-stanley-ubs-2020-9">roundup of the gatekeepers</a> who decide which private-markets investments are making their way into the hands of wealth-management clients. </p><p><a href="http://newsletter.businessinsider.com/join/4np/insider-finance">If you're not yet a newsletter subscriber, you can sign up here to get your daily dose of the stories dominating banking, business, and big deals.</a></p><h3><a href="https://www.businessinsider.com/wells-fargo-ceo-scharf-black-talent-remark-analysis-hires-diversity-2020-9">How Wells Fargo CEO Charlie Scharf, who's under fire for his 'limited' Black talent remark, filled the bank's top ranks with white men from his JPMorgan days</a></h3><p><a href="https://www.businessinsider.com/wells-fargo-ceo-scharf-black-talent-remark-analysis-hires-diversity-2020-9"></a></p><p>Wells Fargo Chief Executive Charlie Scharf apologized on Wednesday for remarks revealed in a <a href="https://www.reuters.com/article/uk-global-race-wells-fargo-exclusive/exclusive-wells-fargo-ceo-ruffles-feathers-with-comments-about-diverse-talent-idUKKCN26D2J3">Reuters report</a> that showed he believes there is a dearth of Black talent to recruit. </p><p>Scharf has been shaking the bank up with new hires since he joined Wells as CEO in October 2019. Rebecca Ungarino took a look at this unique chance to transform the firm's management team — and <a href="https://www.businessinsider.com/wells-fargo-ceo-scharf-black-talent-remark-analysis-hires-diversity-2020-9">how the roles wound up being filled. </a></p><h3><a href="https://www.businessinsider.com/barclays-distressed-credit-lost-60-million-in-first-half-2020-9">A Barclays trading desk lost more than $60 million this year amid a bloodbath in distressed assets</a></h3><p><a href="https://www.businessinsider.com/barclays-distressed-credit-lost-60-million-in-first-half-2020-9"><div type="image" title="FILE PHOTO: The logo of Barclays is seen on the top of one of its branch in Madrid, Spain, March 22, 2016. REUTERS/Sergio Perez" height="1604" width="3209" msid="78335123" hostid="261"></div></a></p><p>Barclays' distressed-credit team has had a difficult stretch in 2020. That comes as sell-side distressed trading in general has taken a bath amid the upheaval from Covid-19, even as fixed-income trading numbers <a href="https://www.businessinsider.com/jpmorgan-citi-second-quarter-earnings-equity-and-bond-trading-results-2020-7">have been off the charts</a> in aggregate. <a href="https://www.businessinsider.com/barclays-distressed-credit-lost-60-million-in-first-half-2020-9">Alex Morrell revealed what's dragging on performance.</a></p><h3><a href="https://www.businessinsider.com/refinitiv-ceo-flexible-working-remote-hiring-back-to-office-2020-9">The CEO of Refinitiv says flexible working has boosted productivity and is here to stay at the $27 billion data giant</a></h3><p><a href="https://www.businessinsider.com/refinitiv-ceo-flexible-working-remote-hiring-back-to-office-2020-9"><div type="image" title="david_craig" height="2149" width="4298" msid="78335126" hostid="261"></div></a></p><p>While many financial firms <a href="https://www.businessinsider.com/when-wall-street-workers-returning-to-office-goldman-jpmorgan-2020-9">are still sorting out what their long-term plans are</a>, one of the largest data providers to the Street is fully embracing flexible working. </p><p>In a conversation with Dan DeFrancesco, Refinitiv CEO David Craig shared that his company has seen a 20-30% increase in productivity on core operational areas since remote work began.</p><p><a href="https://www.businessinsider.com/refinitiv-ceo-flexible-working-remote-hiring-back-to-office-2020-9">"It's not going back to normal because I think attitudes have been changed," Craig told us. </a></p><h3><a href="https://www.businessinsider.com/facebook-farley-building-rent-nyc-office-leasing-market-vacancies-discounts-2020-9">How much Facebook is paying for its giant new office in New York </a></h3><p><a href="https://www.businessinsider.com/facebook-farley-building-rent-nyc-office-leasing-market-vacancies-discounts-2020-9"><div type="image" title="Vornados Farley Building rendering" height="702" width="1405" msid="78335127" hostid="261"></div></a></p><p>Office landlords are lowering rents and sweetening leasing deals to convince tenants to take space. The concessions show just how hard it is to get companies to jump in on office deals right now. </p><p>Look no further than Facebook's blockbuster lease at the <a href="https://www.businessinsider.com/facebook-signs-730000-square-foot-office-lease-at-farley-building-2020-8">Farley Building</a> on Manhattan's West Side, where sources say the social media giant was able to secure a 9% discount on the deal. <a href="https://www.businessinsider.com/facebook-farley-building-rent-nyc-office-leasing-market-vacancies-discounts-2020-9">Dan Geiger has all the details. </a></p><h3><a href="https://www.businessinsider.com/top-alternative-investments-executives-wealth-goldman-merrill-morgan-stanley-ubs-2020-9">Meet the gatekeepers of alternative investments at the largest wealth-management firms </a></h3><p><a href="https://www.businessinsider.com/top-alternative-investments-executives-wealth-goldman-merrill-morgan-stanley-ubs-2020-9"><div type="image" title="wealth management executives alternative investing strategies 2x1" height="1200" width="2400" msid="78335128" hostid="261"></div></a></p><p>For Wall Street firms with big wealth businesses, an enormous amount of due diligence is required when allowing more exotic investments into the hands of financial advisers' clients.</p><p><a href="https://www.businessinsider.com/top-alternative-investments-executives-wealth-goldman-merrill-morgan-stanley-ubs-2020-9">Here's a look at nine people at firm like UBS, Merrill Lynch, and Wells Fargo shaping who's investing in red-hot private markets.</a></p><h2>Banking</h2><ul><li><a href="https://www.businessinsider.com/goldman-sachs-announces-new-leadership-for-ma-group-2020-9">Read the full memo</a> Goldman Sachs just sent announcing a leadership shakeup in its powerhouse M&amp;A group</li><li>Snowflake's mega IPO resulted in more than $100 million in fees for investment banks. <a href="https://www.businessinsider.com/what-investment-banks-made-on-the-snowflake-ipo-in-fees-2020-9">Here's how much</a> Goldman Sachs, Morgan Stanley, and 8 other banks each made.</li></ul><h2><keyword id="6354553" type="COMPANY" weightage="60" keywordseo="real-estate">Real estate</keyword></h2><ul><li>Demand for lab space is booming, and real-estate giant JLL just hired a <a href="https://www.businessinsider.com/jll-hires-new-life-sciences-head-real-estate-investment-massachusetts-2020-9">new life-sciences expert</a> to lean into the opportunity</li><li>Giant mall owner Brookfield Properties is <a href="https://www.businessinsider.com/brookfield-property-partners-layoffs-selling-redeveloping-mall-assets-2020-9">ditching its worst locations</a> and redeveloping what's left into 'mini cities' that blend shopping with residential space</li></ul><h2>Hedge funds</h2><ul><li>Nasdaq follows the NYSE in <a href="https://www.businessinsider.com/nasdaq-opposes-securities-and-exchange-commission-13f-threshold-proposal-2020-9">publicly opposing</a> SEC's proposal to drastically limit visibility into money managers' investments</li><li>Meet the former Goldman Sachs MD who has an <a href="https://www.businessinsider.com/ceo-girls-who-invest-boosting-role-women-asset-management-2020-9">ambitious plan</a> to boost the number of women overseeing funds at big money managers</li></ul><h2>Fintech</h2><ul><li>A fintech that pairs small-business borrowers with lenders just launched <a href="https://www.businessinsider.com/nav-fintech-connecting-small-businesses-to-lenders-new-platform-2020-9">data-driven matchmaking</a> aimed at reinvigorating the space after a pandemic-induced slump</li><li>A compliance startup that helps early-stage companies close deals with incumbents j<a href="https://www.businessinsider.com/laika-compliance-10-million-series-a-canapi-ventures-2020-9">ust raised a $10 million Series A</a> from Canapi Ventures, Bain Capital, and NYCA</li><li>Here's the <a href="https://www.businessinsider.com/dlocal-pitch-deck-unicorn-general-atlantic-fintech-payments-general-atlantic-2020-9">10-slide pitch deck</a> that payments startup dLocal used to raise $200 million from General Atlantic at a $1.2 billion valuation</li></ul><h2><keyword id="6355587" type="ORGANIZATION" weightage="60" keywordseo="Legal">Legal</keyword> news</h2><ul><li>Here's how Columbia, NYU, and 4 other <keyword id="6355470" type="UNKNOWN" weightage="60" keywordseo="law">law</keyword> schools are <a href="https://www.businessinsider.com/top-law-schools-oci-recruiting-timelines-columbia-nyu-virtual-interviews-2020-9">reworking high-stakes job interviews</a> for students this year</li><li>New York's top judge is <a href="https://www.businessinsider.com/new-york-diploma-privilege-law-bar-exam-coronavirus-calfornia-washington-2020-9">sticking with an online bar exam</a> even as complaints of tech issues mount and other states let law grads skip the test and still practice law</li></ul><h2>Professional services</h2><ul><li>PwC's inclusion chief lays out why the Big 4 firm <a href="https://www.businessinsider.com/pwc-diversity-report-interview-improve-gender-and-racial-equity-2020-9">revealed its diversity stats</a> in 'uncomfortable' detail and how other companies should follow suit</li><li>Accenture execs say that the firm's consulting and strategy work <a href="https://www.businessinsider.com/accenture-earnings-consulting-strategy-revenue-outlook-outsourcing-2020-9">should bounce back from a pandemic-induced slump</a> within a year</li></ul><h2>Odd lots</h2><ul><li>A former Esquire exec <a href="https://www.businessinsider.com/a-former-esquire-exec-sued-hearst-alleging-age-gender-discrimination-2020-9">is suing Hearst</a>, alleging age and gender discrimination.</li><li>'It's like being in a sci-fi nightmare film': <a href="https://www.businessinsider.com/whole-foods-employees-say-amazon-workers-cause-chaos-stores-2020-9">Whole Foods employees say</a> Amazon workers are crowding stores, ignoring virus protocols, and hounding them for help as online orders surge</li></ul>

Private-equity recruiting backs off — Barclays trading rout — Alts gatekeepers

How a few scrappy homeowners may stand between Elon Musk and his dream of a Mars spaceport in South Texas

<ul class="summary-list"><li>CBRE, the world's largest commercial real estate brokerage and services firm, has many different internships. Its largest is the national sales internship program, which pairs interns with brokerage teams. </li><li>It received 4,500 applications for 2020, and CBRE expects to make 175 placements in the internship program. </li><li>We spoke to Elisha Bejsovec, the CBRE program manager for campus recruiting who runs the national program, and Lew Horne, CBRE's president of the Pacific Southwest division, about how to nab a spot. </li><li>They suggest having prior internships in the field or joining their schools' real estate society or club. Horne said that they're "laser-focused" on attributes, because "you can train the skills."</li><li>Resume keywords like real estate, leadership, networking, and analytics demonstrate that an applicant may have the attributes that the firm is searching for.</li><li>One way to have a better chance is by networking with the local CBRE brokers and teams. Bejsovec said that many brokers would be glad to meet with potential interns.</li><li><a href="https://www.businessinsider.com/prime">For more BI Prime stories, click here.</a></li></ul><p>In an increasingly professionalized real estate world, the right stamp of approval for a job-hunting student or early-career professional can be crucial.</p><p><a href="https://www.businessinsider.com/best-internships-in-investment-banking-2017-10">While internships at Wall Street giants may draw more attention on campus</a>, real-estate firms have launched their own, ultra-competitive programs. </p><p>CBRE, the world's largest commercial real estate brokerage and services firm, has six<strong style="color: #ff0000;"> </strong>different internship opportunities for recent college grads, from finance and valuations work to project management and tech, as well as a range of opportunities for MBAs and other graduate students, but its largest is the national sales internship.</p><p>Launched five years ago, the paid internship runs for eight weeks in the summer and is open to undergraduate juniors and seniors, as well as graduate students. It operates in 15 markets around the country, with the size of the class of interns proportional to the size of the market. Almost all of CBRE's largest markets are represented, except for New York, which has its own, separate sales internship program.</p><p>The national sales internship program has an acceptance rate that's comparable to Harvard's undergrad program: just under 4%. It received 4,500 applications for 2020, and is projecting to make 175 placements in the internship program. Interns are paired with a brokerage team and also work in small groups on a competitive project, pitching their own insight to solve problems on CBRE's actual deals in progress. </p><p>We spoke to Elisha Bejsovec, the CBRE program manager for campus recruiting who runs the national program, and Lew Horne, CBRE's president of the Pacific Southwest division, about the program, and their tips to get a spot in the intern class, and how to get hired at the end of the eight weeks. </p><p>"It's a potential free look for them and a potential free look for us," Horne told Business Insider (free look is a real estate synonym for due diligence period). They did not disclose the interns' salary, but said it was "competitive" with similar programs. </p><h2><strong>Use these resume keywords to stand out</strong></h2><p>The internship recruiting process starts at the end of the summer, when CBRE post the job opening on its website and on-campus job portals. Bejsovec and her team hold info sessions at some universities with strong real estate, sales or entrepreneurship programs, but they open up applications to a wide range of students.</p><p>Last year, the class of 135 interns came from 77 different universities. Each localized program recruits mostly from nearby universities - Horne said that in greater LA, that means USC and UCLA send many students.</p><p>Bejsovec and Horne said that while academic performance is an important part of the selection, their top priorities for applicants are that they have demonstrated interest in commercial real estate, and that they have the right attributes for a sales job. </p><p>"GPA is great, but a lot of time it doesn't tell the whole story," Bejsovec said. </p><p>Bejsovec and Horne suggest having prior internships in the field or joining their schools' real estate society or club as great ways to show a passion for real estate. Even better, if the intern was in the leadership for their school's real estate society as that indicates they have the right characteristics.</p><p>Horne said that they're "laser-focused" on attributes, because "you can train the skills and the knowledge comes with reps." Resume keywords like real estate, leadership, networking, and analytics demonstrate that an applicant may have the attributes that the firm is searching for.</p><h2>Network with local CBRE brokers to gain an edge</h2><p>One way to have a better chance of selection is by networking with the local CBRE brokers and teams. Bejsovec said that many brokers would be glad to meet with potential interns, and that it could pay off with your application. CBRE has a referral tracking process for the intern program, which is a source of many of their applicants.</p><p>"This is a relationship-oriented business," Bejsovec said. "It's better for you to be known than to just send your application out there and hope it gets accepted." </p><p>The application is kept open for a few months, and applicants should hear back with next steps in January. For those that move forward, the next step is a virtual interview: a pre-recorded interview with the students responding to a set of questions that they read off of their computer screen. This can be awkward, but the awkwardness is a feature, not a bug, as it can "show them in their element" while also overcoming "some adversity," Bejsovec said. </p><p>The last step is an onsite "superday," where finalists come into their local office and interview directly with the teams they would potentially work for. This day is also where the recruiting team matches interns with the teams that make most sense for their interests by asset class. </p><h2><strong>Internal networking is the X factor </strong></h2><p>The internship can turn into a full-time role; 20% of interns were converted to full time in 2018. These offers are not always in brokerage, which Bejsovec said is a "tough place to start as a young person," and interns have been hired into research, valuations, and client management as well. </p><p>Success at CBRE is, in many ways, typical to success in any setting. Bejsovec and Horne encourage students to make sure they come in on time and leave with the rest of the team, to ask questions and learn, and to do high-quality work. </p><p>The X factor, same with the application, is an intern's ability to network outside of their direct team at CBRE, as many interns are actually hired onto teams other than the sales team. Bejsovec and Horne highlighted CBRE's affinity networks, like its military network, LGBT network, and women's network, as ways that interns have been able to make those valuable connections. </p><p>The final group project is another way for interns to stand out. Ryan Gurman, a 2017 intern, won the Greater Los Angeles County/ Orange County contest with a pitch about a retail shopping center that CBRE was working on. The client actually followed through on Gurman's pitch, and Gurman was hired. He was awarded CBRE West LA's 2019 Rookie of the Year award.</p><p>Even for those that don't get converted to full-time roles, Horne said that the program has built an "industry-level reputation," and alums are sprinkled among CBRE's competitors like JLL and Cushman and Wakefield, more boutique firms, private equity and VCs. Bejsovec credits the interns themselves, who have built relationships at the program that have gotten them jobs later on. </p>

Here's how to land a spot in real-estate giant CBRE's ultra-competitive sales internship program that's harder to get into that Harvard

<p>Welcome to Wall Street Insider, where we take you behind the scenes of the <keyword id="25455" type="ORGANIZATION" weightage="100" keywordseo="finance">finance</keyword> team's biggest scoops and deep dives from the past week. </p><p><strong><a href="http://newsletter.businessinsider.com/join/4np/wall-st-insider&amp;hash=f4e91136c13f3c40c496d77bc73475027502">If you aren't yet a subscriber to Wall Street Insider, you can sign up here.</a></strong></p><p><keyword id="6361649" type="UNKNOWN" weightage="60" keywordseo="Goldman-Sachs">Goldman Sachs</keyword> exec Ram Sundaram has solidified his position as a senior leader in the firm's mighty <keyword id="31671" type="CITY" weightage="60" keywordseo="markets">markets</keyword> division. Sundaram, named sole head of the currencies and emerging-markets team last month, is also responsible for a structured credit group known for much of its history as Principal Funding and Investments.</p><p>Dakin Campbell took a look at why the elevation of Sundaram — and what some see as his eat-what-you-kill Wall Street mentality — came as somewhat of a surprise to insiders who see Goldman marketing itself as a <a href="https://www.businessinsider.com/reactions-behind-the-scenes-at-goldman-sachs-investor-day-2020-1">kinder, gentler investment bank</a>. </p><p><strong>You can read the full story here: </strong></p><h2><a href="https://www.businessinsider.com/profile-of-goldman-sachs-executive-ram-sundaram-2020-7">Inside the rise of Ram Sundaram, the leader of a secretive Goldman Sachs desk that's minting billions by designing some of the bank's most imaginative — and controversial — trades. </a></h2><p>Alex Morrell was breaking news left and right on trader moves this week. <a href="https://www.businessinsider.com/mark-hebert-investment-grade-credit-trading-exec-departs-wells-fargo-2020-7">A senior credit-trading exec</a> Wells Fargo hired just one year ago is out. And <keyword id="6374849" type="UNKNOWN" weightage="60" keywordseo="bank-of-america">Bank of America</keyword> <a href="https://www.businessinsider.com/bank-of-america-shakes-up-equities-leadership-emea-head-leaving-2020-7">shook up its global equities division</a> — twice. As part of a slew of changes, the firm <a href="https://www.businessinsider.com/bank-of-americas-soofian-zuberi-becomes-co-head-of-equities-2020-7">elevated Soofian Zuberi</a> to cohead the group alongside Fabrizio Gallo, the division's sole leader since 2011.</p><p><a href="https://www.businessinsider.com/bank-of-america-equities-org-chart-2019-9"><strong>Take a look at our latest org chart for Bank of America's equities division.</strong></a></p><p>Over at Deutsche Bank, plenty of traders have been saying their goodbyes. That includes the bank's head of investment-grade credit trading, <a href="https://www.businessinsider.com/credit-head-steven-feinberg-leaving-trading-deutsche-bank-2020-7">who left just this week</a>. The departure adds to a long list of exits in the firm's credit-trading unit this year.</p><p><strong><a href="https://www.businessinsider.com/an-exodus-hits-deutsche-banks-vaunted-credit-trading-group-2020-7">Here's what's been driving a broader exodus at Deutsche Bank's vaunted credit desk, where even rock stars are feeling a pay squeeze. </a></strong></p><p><a href="https://www.businessinsider.com/affirm-afterpay-klarna-whats-next-for-buy-now-pay-later-2020-6">Buy now, pay later</a> startup Affirm announced this week that it will power Shopify's Shop Pay Installments, which is set to launch later this year. The deal brings together two of the hottest e-commerce players, and Shannen Balogh explained <a href="https://www.businessinsider.com/shopify-affirm-partner-buy-now-pay-later-installments-online-shopping-2020-7">why it's a big win for both sides.</a> She also mapped out Shopify's power players, and you can see the full list here:</p><p><strong><a href="https://www.businessinsider.com/shopify-power-players-executives-leading-e-commerce-rise-2020-7">Meet 12 key execs driving Shopify, an investor darling that's seen its stock price triple since March.</a></strong></p><p>More below on the hottest B2B and B2C fintechs, <keyword id="162379" type="COMPANY" weightage="60" keywordseo="Neiman-Marcus">Neiman Marcus</keyword>' exit from Hudson Yards, the empty space <keyword id="2918346" type="PERSON" weightage="60" keywordseo="WeWork">WeWork</keyword> is marketing in New York, and a roundup of top credit execs and new hires at Apollo. </p><p>Enjoy the weekend,</p><p>Meredith </p><h2>We're seeking nominations for the 2020 Rising Stars of Wall Street </h2><p>Business Insider is putting together a power list of young talent on Wall Street in 2020. We want to hear from you on the people who have been rising the ranks and standing out in the worlds of investment banking, investing, and sales and trading. </p><p><strong>You can submit your ideas <a href="https://docs.google.com/forms/d/e/1FAIpQLSf4KGzHhP_--qQF1Z9XWo-AESoFV8Q3yQQF91-rthJRc2wpfA/viewform">through this form</a> by August 13. </strong></p><h2>WeWork's long list of empty space</h2><p><div type="image" title="FILE - This Nov. 5, 2019 file photo shows a WeWork office space in New York. WeWork says it racked up $1.25 billion in losses in the third quarter as it geared up for an ultimately scuttled stock market debut WeWork’s losses more than doubled between June-September, compared to the same period the previous year, as the office-sharing company spent heavily in pursuit of aggressive growth.(AP Photo/Mark Lennihan)" height="3150" width="6300" msid="77169592" hostid="261"></div></p><p>WeWork is awash in vacancy in its biggest city, Dan Geiger reported. And the coworking giant's availability rate in New York, which includes spaces that are empty or will be in the coming months, far exceeds that of the overall market.</p><p><strong>Read the full story here: </strong></p><h2><a href="https://www.businessinsider.com/wework-office-vacancies-dock-72-other-locations-new-york-city-2020-7">20% of WeWork's New York space is sitting empty. Here's a look at key vacancies the city's biggest office tenant is trying to fill.</a></h2><h2>Apollo power players</h2><p><div type="image" title="Apollo credit professionals 4x3" height="834" width="1667" msid="77169594" hostid="261"></div></p><p>Apollo Global Management has been quietly building out its credit team as the pandemic rages on and investors await a flurry of deal activity.</p><p>Recent hires have come from Bank of America and PointState Capital, and Casey Sullivan also learned about several others in the works. He took a look at Apollo's credit lineup, including senior execs who will be pulling the strings behind lending deals, and those who Apollo has tapped to help bring its credit investments to the next level. </p><p><strong>Read the full story here: </strong></p><h2><a href="https://www.businessinsider.com/executives-behind-apollo-credit-growth-new-hires-direct-lending-2020-7">13 Apollo execs, rising stars, and new hires who are propelling the firm's massive push into credit investments</a></h2><h2>60 fintechs set to take off in 2020</h2><p><div type="image" title="4x3 tech startup" height="600" width="1200" msid="77169595" hostid="261"></div></p><p>The world of fintech moves fast, with no-name startups turning into fintech darlings with billion-dollar valuations seemingly overnight. Dan DeFrancesco and Shannen Balogh polled 27 fintech investors to find out which startups are on the cusp of breaking out.</p><p>The submissions were wide-ranging, touching on everything from personal finance to bill pay to data management.</p><p><strong>You can see the list of B2Bs here: </strong></p><h2><a href="https://www.businessinsider.com/fintech-b2b-early-stage-business-investors-finance-2020-7">Investors say these 38 fintechs are the next generation of breakout B2B stars, following in the footsteps of Stripe and Plaid</a></h2><p><strong>And a roundup of hot consumer-facing fintechs here:</strong></p><h2><a href="https://www.businessinsider.com/fintech-early-stage-consumer-finance-investors-2020-7">22 fintechs that VCs and big investors say are on the brink of becoming household names</a></h2><h2>Everybody's a macro trader now</h2><p><div type="image" title="hedge fund trader" height="500" width="1000" msid="77169597" hostid="261"></div></p><p>At the beginning of the pandemic, the market fell with each new update on infection numbers — and alternative data firms <a href="https://www.businessinsider.com/outlook-alt-data-providers-hedge-funds-analytics-new-products-2020-5">were quick to roll out</a> new indices and markers to track the fallout. </p><p>But with the S&amp;P 500 almost back at its February highs, hedge funds trying to make sense of it all have had to reimagine the way they use their alt data. And as Bradley Saacks explains, just about every money manager is thinking big picture and looking more like a macro investor.</p><p><strong>Read the full story here: </strong></p><h2><a href="https://www.businessinsider.com/hedge-funds-rethink-alternative-data-pandemic-macro-2020-7">Hedge funds are overhauling the way they use alt data as even quants are being forced to think like macro investors</a></h2><h2>Neiman Marcus exits Hudson Yards in Manhattan</h2><p><div type="image" title="neiman marcus hudson yards" height="960" width="1920" msid="77169599" hostid="261"></div></p><p>Neiman Marcus' surprise exit from the one-million-square-foot mall at the Hudson Yards not only knocks out the glitzy retail project's headline tenant — it could also unravel profits for the remainder of the space.</p><p>As Dan Geiger reports, developers The Related Companies and Oxford Properties had used Neiman's presence to attract other retailers to the 7-level property known as The Shops at Hudson Yards — and many of those tenants have co-tenancy clauses in their leases. </p><p><strong>Read the full story here: </strong></p><h2><a href="https://www.businessinsider.com/neiman-marcus-hudson-yards-exit-cotenancy-tenants-pay-zero-rent-2020-7">Neiman Marcus' exit from the Hudson Yards strikes a blow to the $25 billion mega-project. Here's how the departure could unravel the 1-million-square-foot mall.</a></h2><h2>Real-estate earnings preview</h2><p>Analysts are predicting one of the most bruising quarters in recent memory for major real-estate firms such as CBRE, Cushman &amp; Wakefield, and JLL, which are scheduled to report earnings in the coming weeks.</p><p>The companies depend heavily on transactions such as sales and leasing that evaporated as the pandemic stalled the economy. But while it could take years for their earnings to rebound, real-estate services companies have also diversified their revenue since the last recession, which could help guard their bottom lines.</p><p><strong>Read the full story here: </strong></p><h2><a href="https://www.businessinsider.com/cushman-cbre-and-jll-earnings-dates-forecasts-transactional-revenue-plunge-2020-7">Wall Street analysts say this earnings season could be a bloodbath for big real-estate firms like CBRE and Cushman &amp; Wakefield, with a Great Recession-sized hit packed into just a few months</a></h2><h2><strong>Careers</strong></h2><ul><li><a href="https://www.businessinsider.com/use-cold-emailing-land-job-internship-wall-street-vc-2020-7">How to use cold emails to land a gig working on Wall Street, according to a JPMorgan banking analyst turned VC who did it herself</a></li><li><a href="https://www.businessinsider.com/bain-bcg-and-mckinsey-base-salaries-how-much-consultants-make-2020-7">Top management-consulting salaries, revealed: How much Bain, BCG, and McKinsey consultants make, from entry level through partner roles</a></li><li><a href="https://www.businessinsider.com/wall-street-work-from-home-future-banks-hedge-funds-2020-7">Wall Street is starting to return to the office — but not everyone is heading back. Here's which finance jobs are the most likely to remain virtual</a>.</li><li><a href="https://www.businessinsider.com/charles-schwab-virtual-summer-internships-hiring-remote-tips-for-success-2020-7">Charles Schwab will offer half of its virtual interns full-time jobs in the coming weeks. From what to wear to how to stay organized, a talent exec at the brokerage giant shares ways to impress remotely.</a></li><li><a href="https://www.businessinsider.com/bank-of-america-exec-companies-black-lives-matter-2020-7">One of the most powerful women at Bank of America explained how to defeat racial inequality at work: 'It's one thing to say Lives Matter. It's another thing to say, with clarity, Black Lives Matter.'</a></li><li><a href="https://www.businessinsider.com/law-firms-delayed-first-year-fall-start-dates-fall-2020-7">Law firms like Kirkland &amp; Ellis and Jones Day are delaying their first-year associate classes. Here's everything you need to know.</a></li><li><a href="https://www.businessinsider.com/ny-september-bar-cancelled-diploma-privilege-2020-7">New York's bar exam is cancelled. Here's why calls are mounting for the test to be canned completely.</a></li></ul><h2>Wealth Management</h2><ul><li><a href="https://www.businessinsider.com/rockefeller-capital-greg-fleming-recruiting-expansion-strategy-2020-7">Greg Fleming's $43 billion Rockefeller Capital has aggressively poached advisers from the biggest wealth firms. Here's what execs are planning next.</a></li></ul><h2>Deals</h2><ul><li><a href="https://www.businessinsider.com/bain-and-co-predicts-possible-resurgence-in-private-equity-dealmaking-2020-7">4 charts map out why private-equity dealmaking and fundraising is poised for a rebound, with more firms on the hunt for deals and execs embracing virtual meetings</a></li><li><a href="https://www.businessinsider.com/knotel-aims-to-raise-100-million-in-new-funding-2020-7">WeWork rival Knotel just told staff it's looking to raise $100 million as it faces a turbulent office market and a host of unpaid bills</a></li></ul><h2><strong>Real Estate</strong></h2><ul><li><a href="https://www.businessinsider.com/bond-logistics-startup-warehouses-softbank-reef-ecommerce-parking-lots-2020-7">Logistics startup Bond has teamed up with SoftBank-backed REEF Technology to bring nano-warehouses to parking lots across the US. Here's how they're building the distribution hubs of the future.</a></li><li><a href="https://www.businessinsider.com/wall-street-real-estate-remote-work-wework-wells-fargo-citi-2020-7">Wells Fargo is ditching a 750-person WeWork space, while Citi inked a deal with the flex-office giant far from a big city. Here's a look at how financial firms are retooling their real estate.</a></li><li><a href="https://www.businessinsider.com/big-tenants-amazon-logistics-demand-cold-storage-spaces-grocery-delivery-2020-7">The $98 billion cold-storage sector is at a tipping point, and investors are piling in as online grocery deliveries surge</a></li></ul><h2>Hedge funds </h2><ul><li><a href="https://www.businessinsider.com/tekmerion-capital-pitchdeck-ray-dalio-bridgewater-lawsuit-2020-7">These 5 slides from a small hedge fund's pitchdeck were at the center of a legal battle with Ray Dalio's Bridgewater — and it shows the lengths the billionaire will go to protect his firm's trade secrets</a></li><li><a href="https://www.businessinsider.com/legion-partners-boingos-best-course-would-be-a-sale-2020-7">A $400 million activist investor returned 44% in the 2nd quarter — and now it's urging one of the drivers of its performance, airport WiFi provider Boingo, to sell itself</a></li></ul><h2>Payments</h2><ul><li><a href="https://www.businessinsider.com/visa-cfo-vasant-prabhu-revenue-beyond-cards-2020-7">The CFO of Visa maps out 2 areas it's investing in beyond cards to keep up with fintechs that are transforming the payments game</a></li><li><a href="https://www.businessinsider.com/ebay-paypal-operating-agreement-end-payments-2020-7">eBay will manage its own payments now that its 5-year agreement with PayPal has expired, and its head of payments is eyeing $2 billion in new revenue</a></li><li><a href="https://www.businessinsider.com/jpmorgan-instamed-acquisition-record-growth-2020-7">Inside JPMorgan's $500 million bet on healthcare payments: the CEO of InstaMed says it's seeing record sales since being acquired by the Wall Street giant</a></li></ul><h2>Startups</h2><ul><li><a href="https://www.businessinsider.com/kabbage-launches-business-checking-account-2020-7">SoftBank-backed fintech Kabbage is making a grab at small businesses disillusioned by big banks' PPP rollout by launching its own checking accounts</a></li><li><a href="https://www.businessinsider.com/corigin-ventures-real-estate-vc-diversity-benchmarks-black-investors-2020-7">Compass and Latch investor Corigin Ventures just pledged 15% of its portfolio to Black and LatinX founders in a bid to bring diversity to tech and old-school industries like real estate</a></li><li><a href="https://www.businessinsider.com/trifacta-pitch-deck-100-million-data-ai-bmw-google-accel-2020-7">Read the 24-slide pitch deck that 'data janitor' startup Trifacta used to land $100 million from backers including Google and BMW</a></li></ul>

What's driving an exodus at Deutsche Bank's vaunted credit desk

<p>Welcome to <keyword id="9075000" type="UNKNOWN" weightage="60" keywordseo="wall-street-insider">Wall Street Insider</keyword>, where we take you behind the scenes of the <keyword id="25455" type="ORGANIZATION" weightage="100" keywordseo="finance">finance</keyword> team's biggest scoops and deep dives from the past week. </p><p><strong><a href="http://newsletter.businessinsider.com/join/4np/wall-st-insider&amp;hash=f4e91136c13f3c40c496d77bc73475027502">If you aren't yet a subscriber to Wall Street Insider, you can sign up here.</a></strong></p><p>For Wall Street banks, this earnings season told a tale of diverging fortunes: big wins on the trading floor, and mounting worries about the health of the consumer — and the overall economy. </p><p><a href="https://markets.businessinsider.com/news/stocks/economic-outlook-wall-street-executives-recession-dimon-solomon-corbat-scharf-2020-7-1029398804#">Top execs across Wall Street sounded the alarm on a tough economic recovery ahead.</a> JPMorgan CFO Jennifer Piepszak, for one, warned that government stimulus and loan forbearance programs are <a href="https://www.businessinsider.com/jpmorgan-second-quarter-earnings-loan-losses-charge-offs-2020-7">hiding the potential pain consumers and businesses could feel in the coming months</a>. </p><p>"The relationship between the business cycle and the health of the business sector and the health of the household sector is broken," she noted.</p><p>Trading-heavy banks nonetheless enjoyed a big boost from both their equities and fixed-income desks. <a href="https://www.businessinsider.com/jpmorgan-citi-second-quarter-earnings-equity-and-bond-trading-results-2020-7">But some Wall Street execs downplayed that win</a>. JPMorgan says trading already started to cool off toward the end of June and projected performance could fall by half in the next two quarters.</p><p>Apollo Global Management has a reputation for being one of the most aggressive investors on Wall Street. So it may come as a surprise that it's undergoing a cultural makeover of sorts, which could help lure talent for a big growth push and cultivate a more family-friendly work atmosphere.</p><p>Casey Sullivan talked with Matthew Breitfelder, Apollo's head of talent, about initiatives he's been rolling out since joining from BlackRock last year.</p><p><strong>Read the full story here: </strong></p><h2><a href="https://www.businessinsider.com/apollo-head-of-talent-talks-hiring-mba-recruiting-private-equity-2020-7">Apollo is revamping recruiting and trying to soften its culture amid a big growth push. From kids' story time to a new MBA summer internship, here's how.</a></h2><p>Keep reading for a look at how PayPal is leaning into the buy now, pay later frenzy; a checkup on the health of the co-living sector; and to learn more about Google Cloud's strategy for making inroads with financial-services clients. </p><p>Have a great weekend, </p><p>Meredith</p><h2>PayPal doubles down on BNPL</h2><p>Shannen Balogh has been writing a lot about <a href="https://www.businessinsider.com/buy-now-pay-later-affirm-afterpay-klarna-splitit-merchants-spending-2020-4">how buy now, pay later is booming</a> during the pandemic thanks to a surge in online shopping, with startups like <a href="https://www.businessinsider.com/these-4-startups-backed-by-a16z-and-snoop-dogg-are-changing-the-way-millennials-pay-2020-1">Afterpay and Klarna</a> all<a href="https://www.businessinsider.com/buy-now-pay-later-affirm-afterpay-klarna-splitit-merchants-spending-2020-4"> seeing a boost</a> as consumers look for ways to stretch their dollars.</p><p>While PayPal has had a buy now, pay later solution since 2008, its focus is shifting to shorter-term payment plans geared toward young consumers. The payments giant just launched a buy now, pay later solution in France that offers buyers the ability to split purchases into four installments.</p><p><strong>Read the full story here:</strong></p><h2><a href="https://www.businessinsider.com/paypal-credit-buy-now-pay-later-payments-tech-2020-7">Here's how PayPal is looking to boost its credit business by leaning into a buy now, pay later frenzy</a></h2><h2>Google Cloud's financial-services push</h2><p><div type="image" title="Ulku Rowe, Google Cloud" height="512" width="1024" msid="77039297" hostid="261"></div></p><p>As Dan DeFrancesco reports, Google Cloud has <a href="https://www.businessinsider.com/thomas-kurian-google-cloud-customers-verizon-deutsche-bank-2020-7">enjoyed a string of big wins recently</a>, especially when it comes to nabbing clients in financial services. On Wednesday, Chicago-based exchange operator CME Group said it would <a href="https://www.businessinsider.com/aws-google-public-cloud-providers-targeting-exchanges-2019-10">extend its relationship</a> with Google Cloud to offer additional forms of its market data via the public cloud. </p><p>Ulku Rowe, technical director for financial services at Google Cloud, told Dan there's been increased momentum among financial firms to adopt the public cloud after years of resistance. "I think it's kind of past the tipping point in financial services. That hesitation to move to the cloud has been overcome by the industry as a whole," she said. </p><p><strong>Read the full story here:</strong></p><h2><a href="https://www.businessinsider.com/how-google-cloud-is-nabbing-clients-like-cme-deutsche-bank-2020-7">From Deutsche Bank to CME, Google Cloud has nabbed a string of big financial clients. Here are 3 ways it's making its pitch to win over Wall Street.</a></h2><h2>The first inning of distress</h2><p><div type="image" title="wall street distressed debt trading 2x1" height="1000" width="2000" msid="77039300" hostid="261"></div></p><p><a href="https://www.businessinsider.com/wall-streets-top-distressed-credit-and-debt-traders-2020-5">Distress investors</a> — those specializing in buying companies in bankruptcy or close to it, and reorganizing them — are excited about the opportunities that have come from the novel coronavirus pandemic. Jason Mudrick is no different.</p><p>Mudrick, who runs the $2.4 billion Mudrick Capital, said on a webinar hosted on Tuesday that he is expecting the biggest opportunity set of his career over the next three to five years. </p><p>There is going to be a "huge supply of distress" coming, and Mudrick thinks that we are only in the "first inning" of it — and that the bounceback in equity and bond <keyword id="31671" type="CITY" weightage="60" keywordseo="markets">markets</keyword> won't dent these kinds of opportunities. </p><p><strong>Read the full story here:</strong></p><h2><a href="https://www.businessinsider.com/jason-mudrick-huge-supply-of-distress-investing-debt-2020-7">$2.4 billion hedge fund manager Jason Mudrick says there's an unprecedented supply of distressed debt still to come. Here are the opportunities he's eyeing.</a></h2><h2>The outlook for co-living</h2><p><div type="image" title="starcity coliving housing" height="1500" width="3000" msid="77039303" hostid="261"></div></p><p>The co-living industry has grown rapidly in recent years, but it's facing its first downturn and a pandemic that threatens to upend the core of its business model. And tens of thousands of new co-living units are still being readied, creating the threat of a supply glut. Dan Geiger took a look at how the sector is positioned.</p><p>So far, industry players say the sector has weathered the crisis, although rents and occupancy have appeared to fall more than the overall rental market in cities such as New York.</p><p><strong>Read the full story here:</strong></p><h2><a href="https://www.businessinsider.com/common-ollie-and-other-coliving-operators-share-occupancy-rent-data-2020-7">Co-living is the real-estate industry's big bet on dorm-like housing for young professionals. Here's why players like Nuveen and Cushman &amp; Wakefield remain bullish even during the pandemic.</a></h2><h2>Merrill Lynch restarts trainee hiring</h2><p><div type="image" title="Andy Sieg has been the head of Merrill Lynch since 2017." height="1500" width="3000" msid="77039306" hostid="261"></div></p><p>Bank of America's Merrill Lynch has resumed hiring into its massive financial adviser training program after a temporary pause instated in early spring. And the wealth manager is also starting to bring back the group of some 650 or so adviser trainees who were reassigned to help customers in other parts of the bank earlier in the pandemic.</p><p>Rebecca Ungarino took a look at what this means for Merrill's talent pipeline, especially as <a href="https://www.businessinsider.com/wealth-management-industry-news-next-generation-of-financial-advisers-2020-2">the wider wealth industry has had to grapple</a> with more advisers leaving than new blood coming in.</p><p><strong>Read the full story here:</strong></p><h2><a href="https://www.businessinsider.com/bank-of-america-merrill-lynch-wealth-management-trainee-hiring-2020-7">Merrill Lynch has restarted hiring for its ultra-competitive 3,000-person financial advisor trainee program after hitting pause for months amid the pandemic</a></h2><h2>BlackRock eyes demand for private-market strategies</h2><p><div type="image" title="Larry Fink" height="512" width="1024" msid="77039312" hostid="261"></div></p><p>BlackRock CEO Larry Fink is excited about expanding private-market offerings to clients, and he's feeling optimistic around the US government's move to allow private equity into retirement funds — though he cautioned it remained to be seen how that would be implemented.</p><p>Rebecca Ungarino took a look at how BlackRock is setting itself up to better cater to growing demand in the world of alternative investments as clients crowd in for non-public assets like <a href="https://www.businessinsider.com/category/private-equity">private equity</a> and private credit.</p><p><strong>Read the full story here: </strong></p><h2><a href="https://www.businessinsider.com/blackrock-larry-fink-on-private-investments-private-equity-aladdin-opportunity-2020-7">BlackRock's Larry Fink is pumped about the possibility of private equity in your retirement fund. Here's how the $7 trillion manager is positioning itself to benefit.</a></h2><h1>On the move</h1><p><div type="image" title="citadel ken griffin 2x1" height="834" width="1667" msid="77039316" hostid="261"></div></p><p>Billionaire Ken Griffin has poached another executive from a top rival. Griffin's Citadel <a href="https://www.businessinsider.com/aqrs-head-of-trading-isaac-chang-joining-ken-griffins-citadel-2020-7">has recruited AQR's head of trading Isaac Chang</a> to be the Chicago-based firm's first-ever head of execution trading for its fixed-income business. He'll join the firm in September. The $33 billion hedge fund is also adding a <a href="https://www.businessinsider.com/citadels-tech-team-hired-two-sigmas-andrew-janian-2020-5">top Two Sigma tech executive to its team</a> to handle everything "post execution", Bradley Saacks reported in May. </p><h2><div type="image" title="bi digital live event 2 2x1" height="1200" width="2400" msid="77039318" hostid="261"></div></h2><p>One-click checkout startup Fast <a href="https://www.businessinsider.com/fast-pitch-deck-series-a-stripe-raise-20-million-2020-5#-2">raised a $20 million Series A</a> from investors including Index Ventures and buzzy fintech Stripe in May. </p><p>In an exclusive webinar this week with Business Insider, Fast's cofounder and CEO Domm Holland and Jan Hammer, general partner at Index Ventures, walked us through how to build a pitch deck, what investors are looking for, and how founders should approach fundraising.</p><h2><a href="https://www.businessinsider.com/webinar-fast-index-ventures-pitch-deck-2020-7">WATCH: The cofounder and CEO of one-click checkout startup Fast and an investor from Index Ventures walked us through the fintech's pitch deck and what it takes to win over investors</a></h2><h1>Banks</h1><ul><li><a href="https://www.businessinsider.com/wells-fargo-10-billion-cost-cuts-charlie-scharf-jobs-branches-2020-7">Wells Fargo execs are setting their sights on $10 billion in cost-cuts, putting layoffs and branch closures on the table. Here's how it could play out.</a></li></ul><h1>Investing and trading</h1><ul><li><a href="https://www.businessinsider.com/goldman-sachs-asset-management-quants-how-coronavirus-risk-factor-works-2020-7">Goldman Sachs quants overseeing $200 billion rolled out a new model for handling COVID-19 risk way back in January. 2 exec walked us through how it works, and how they've fine-tuned it amid market madness.</a></li><li><a href="https://www.businessinsider.com/hedge-funds-are-expected-to-bounce-back-after-bad-performance-2020-7">The first half of the year was the worst stretch for hedge funds since the financial crisis. Now, investors expect a serious bounce back for the $3 trillion industry.</a></li></ul><h1>Careers</h1><ul><li><a href="https://www.businessinsider.com/how-jll-pivoted-its-training-and-prepared-brokers-for-virtual-deals-2020-7">How commercial real-estate giant JLL is pivoting its trainee program to help early-career brokers land deals virtually</a></li><li><a href="https://www.businessinsider.com/dardens-business-school-admissions-gmat-stand-out-2020-7">An admissions officer from Darden Business School, one of the first MBA programs to go test-flexible, explained how the school's evaluating applicants and who can skip the GMAT</a></li><li><a href="https://www.businessinsider.com/jefferies-ceo-rich-handler-hosts-zoom-lunch-social-media-2020-7">One of Wall Street's highest-paid CEOs is hosting a virtual lunch with followers of finmeme account Litquidity. Jefferies' Rich Handler explained how he's 'trying to help in a small way while the world is so upside down.'</a></li></ul><h1>Deals and IPOs</h1><ul><li><a href="https://www.businessinsider.com/why-private-equity-giants-like-kkr-buying-life-insurance-companies-2020-7">KKR is making a big push into the $30 trillion insurance industry — here's why private equity is starting to look more and more like Berkshire Hathaway</a></li><li><a href="https://www.businessinsider.com/quicken-loans-parent-rocket-cos-pitching-payments-like-ipo-valuation-2020-7">The parent of mortgage giant Quicken Loans is prepping an IPO pitch valuing it more like a payments company than a lender. Here's why.</a></li></ul><h1>Real estate</h1><ul><li><a href="https://www.businessinsider.com/inside-knotel-financials-growth-amol-sarva-2020-6">Office-rental startup Knotel bragged it was a nearly profitable anti-WeWork. Now lawsuits are stacking up. 12 insiders reveal what happened to the $400 million Knotel said it raised last year.</a></li><li><a href="https://www.businessinsider.com/wework-alumni-networking-latest-venture-dongnae-south-korea-proptech-startup-2020-7">Two former South Korea WeWorkers just launched a real-estate tech startup. Here's a look at the growing network of WeWork alumni founding and funding new companies.</a></li><li><a href="https://www.businessinsider.com/vts-unicorn-new-marketplace-and-marketing-tool-2020-7">Real estate power players are doubling down on virtual tours. We got an exclusive demo of a new platform that helps businesses find office space from their phones or laptops using 250 different data points.</a></li><li><a href="https://www.businessinsider.com/wework-leases-110000-square-feet-at-30-hudson-street-merck-2020-7">WeWork is leasing a big new office in Jersey City to house the headquarters of a planned spin-off from pharma giant Merck. Here's how the deal will work, and why it's a big win for the struggling coworking giant.</a></li></ul><h1>Law</h1><ul><li><a href="https://www.businessinsider.com/washington-litigator-bob-cooper-leaves-boies-schiller-king-spalding-2020-7">A litigator who ran elite law firm Boies Schiller's Washington DC office is jumping ship and following other BSF partners in joining King &amp; Spalding</a></li></ul>

Inside Apollo's shift to soften its culture from kids' storytime to a new MBA summer program

LAST TOWN BEFORE MARS: SpaceX's most vocal holdouts in South Texas are selling their homes to Elon Musk's rocket company to make way for a Mars spaceport

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Gensler for Tishman Speyer</span></p><p class="caption">Studio's New York location.</p></div><p></p></div></div></p><ul class="summary-list"><li><p><strong>A new flock of landlord-operated flex spaces, including Hines' Hines Squared and Boston Properties' Flex, are entering the market. </strong></p></li><li><strong>Business Insider toured one of these spaces, operated by Tishman Speyer's Studio. <a href="https://therealdeal.com/issues_articles/who-owns-all-of-new-york/">New York's fourth-biggest landlord </a>is operating several flexible office space across the globe.</strong></li><li><p><strong>The company offers hot desk space as well as private office space for small and medium companies. It also provides full floors for larger companies that want to outsource their office management needs, echoing <a href="https://www.businessinsider.com/weworks-third-quarter-earnings-show-high-growth-strategy-2019-11">WeWork's move into the enterprise business</a>. </strong></p></li><li><strong><a href="https://www.businessinsider.com/prime">Visit BI Prime for more stories. </a></strong></li></ul><p>Coworking and flex-office space hit the big time this year, thanks to a mix of hype and front-page controversy.</p><p><a href="https://www.businessinsider.com/heres-the-latest-wework-news-2019-6?utm_source=markets&amp;utm_medium=ingest?utm_source=hearst&amp;utm_medium=referral&amp;utm_content=allverticals">WeWork's failed IPO</a> has brought a <a href="https://www.businessinsider.com/sam-zell-bashes-wework-2019-9">wide range</a> of <a href="https://www.businessinsider.com/feds-rosengren-flags-risks-to-economy-in-wework-style-model-2019-9">naysayers</a>, while <a href="https://www.businessinsider.com/weworks-coworking-competitors-highlight-how-they-are-different-ipo-delayed-2019-9">those in the industry say</a> that WeWork's story has more to do with <a href="https://www.businessinsider.com/investors-and-experts-proptech-react-to-adam-neumann-stepping-down-2019-9">bad governance</a> as opposed to a broadly unsustainable industry. </p><p>With all the talk of lease arbitrage, managed partnerships, and other approaches, an outside observer might ask: why aren't landlords doing this themselves? </p><p>There are those in the flex office world who say that landlords, used to collecting rent checks, keeping the elevator running, and little else, don't have the mixture of operations and hospitality experience needed to run a flexible office space.</p><p>But a new flock of landlord-operated flex spaces, including Hines' Hines Squared and Boston Properties' Flex, are challenging this view.  </p><p>Business Insider toured one of these spaces, operated by Tishman Speyer's Studio. <a href="https://therealdeal.com/issues_articles/who-owns-all-of-new-york/">New York's fourth biggest landlord</a> now has seven open flex-space locations around the world and at least five more being built.</p><p>The firm has also leased space to WeWork since at least 2014, and partners with other flex-office providers. The decision to launch Studio just over a year ago was made so that the company could keep its "direct relationship" with clients, Thais Galli, managing director at Tishman Speyer and head of studio, told Business Insider. </p><p>"If the market is shifting and our clients are looking for something else, there was no reason why we wouldn't start to offer that something else as well," Galli said. </p><p>Studio is open in New York, Boston, Washington DC, Chicago, Los Angeles, and Rio de Janeiro, with locations opening soon in Berlin and Sao Paulo. </p><p>The New York location I visited has a lot of black and brassy finishes, which Galli compared to the bright colors of the Los Angeles location. The lounge furniture, including a brown leather Chesterfield sofa, conjured up images of old New York, while the Berlin location will use more modern furniture. </p><p>The conference rooms in each Studio location are themed. The New York location boasts a homey Brooklyn Heights room and a sleek Chelsea room. </p><p>The company offers hot desk space as well as private office space for small and medium companies. The company also provides full-floors of office space for larger companies that want to outsource their office management needs, echoing <a href="https://www.businessinsider.com/weworks-third-quarter-earnings-show-high-growth-strategy-2019-11">WeWork's move into the enterprise business</a>. </p><p>Landlords who are renting out space directly to a flex office company aren't typically sharing in the upside when things are good, but they share the same downside when times are bad (namely vacant office space that doesn't make money.)</p><p>"During this economic growth, there's a lot of upsides," Galli said. "During a downturn, there are risks as well. So if we're going to have the risks, we want to make sure that we're keeping the upside in-house as well."</p><p>But the company won't be rolling out Studio into all of their properties. Tishman's investors are the most important consideration when deciding where to put in a Studio space.</p><p>"We always sit with our investors, and ask for their blessing as well," Galli said. </p><p>Separately from our tour of Studio, we spoke with Ben Munn, JLL's managing director of Flex Space globally, who also highlighted investors as one of the most important factors for landlords considering operating flexible space. He noted that it's important to determine whether a building is a "long-term position" or if a landlord just filling in gaps. If it's the latter, it probably makes more sense to just lease the space out to a typical flex office operator. </p><p>"We really have a lot of properties that we consider long-term holds and we are not only the owners but also the operators," Galli said.</p><p>This combination of owning and operating has Tishman Speyer thinking about Studio not only as a business of its own, but also as a part of a building's full ecosystem. </p><p>"If I look to my core customer base and say I want to provide it as an amenity, I don't necessarily need it to generate direct market rents if it provides conversions and renewals in the rest of the building," Munn said. </p><p>And Tishman Speyer views some of the startups that may begin as Studio occupants as the potential anchor tenants of the future. </p><p>"It's a great entry door for them to get into our properties," Galli said.</p><p>While it's definitely possible for landlords to operate flexible space, Munn said that he doesn't "think it's easy to do it well."</p><p>"If they're going to build their own operating business, they have to understand that this is a customer-oriented operations," Munn said. "It's not about managing arm's-length relationships."</p><p>Galli said that Tishman Speyer's Studio is still a big change for the company.</p><p>"What's changed is that when you do coworking ... is that you're really in there everyday," Galli said.</p><p>She says that the business shifts from real estate to hospitality and that the team has to adapt by hiring staff with hospitality experience.</p><p>Galli said she also had to learn a lot more about design, especially design that is adaptable to current trends. She said that almost none of the build out is permanent: Studio uses demountable glass partitions instead of traditional walls and no fixtures or furniture are built-in except for the cafe bar and the pantries. She said this allows the company to switch layouts as people's preferences change. </p><p>Technology is used to study space usage and to connect clients to each other and the building's amenities.</p><p>Conference rooms are outfitted with sensors that track usage, and Wifi signals allow Studio to differentiate common space usage between hot desk users and those who work for a company that rents office space.</p><p>The company <a href="https://www.businessinsider.com/deloitte-ranks-tech-tenant-experience-top-cre-the-biggest-players-2019-10">has two tenant experience apps</a>. One, exclusive to Studio members, allows them to book conference rooms and desks across all of Studio's properties.</p><p>The other, Zo, is an amenity app that all Tishman Speyer tenants can access. Zo connects Studio members to events, services, and interest groups within the building.</p><p> </p><ul class="read-more-links"><li><strong><em>Read more:</em></strong></li><li><em><a href="https://www.businessinsider.com/uk-coliving-company-the-collective-expands-to-the-us-2019-10" data-read-more-link="" data-e2e-name="read-more-link">UK coliving company The Collective expands to the US with a Long Island City property that blurs the line between coliving and short-term rentals</a></em></li><li><em><a href="https://www.businessinsider.com/blackstones-office-portfolio-ceo-explains-how-to-win-lose-tech-2019-10" data-read-more-link="" data-e2e-name="read-more-link">The CEO of Blackstone's massive office portfolio says industry-wide proptech adoption is hinging on strong leadership - and a healthy dose of fear</a></em></li><li><em><a href="https://www.businessinsider.com/wework-used-disounts-to-convince-tenants-to-relocate-new-locations-2019-9" data-read-more-link="" data-e2e-name="read-more-link">WeWork opened 400 locations in 3 years. In some cases, it used deep discounts to convince existing customers to relocate to help fill them.</a></em></li></ul><p class="tagline"><a href="https://www.businessinsider.com/intelligence/40-big-tech-predictions-for-2019?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=wework&amp;itm_campaign=40-big-tech-predictions-for-2019-2"></a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/this-mom-is-winning-halloween-with-movie-inspired-crocheted-costumes-2018-10">This mom is winning Halloween with her movie-inspired crocheted costumes</a></h3>        <div>                    </div>    </div>

Tishman Speyer is opening its own flex offices without go-betweens like WeWork. We got a look at the landlord's new space in New York.

<p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div><ul class="summary-list"><li><a href="https://www.businessinsider.com/category/spacex">SpaceX</a>, the rocket company founded by Elon Musk, is building and <a href="https://www.businessinsider.com/spacex-starhopper-launch-video-youtube-live-video-feed-2019-8">launching</a> Mars rocket prototypes from the southeastern tip of Texas.</li><li>However, the company built its experimental spaceport in and around <a href="https://www.businessinsider.com/category/boca-chica-village">Boca Chica Village</a>, a decades-old community of about 20 older residents.</li><li>Due to what it says is <a href="https://www.businessinsider.com/spacex-starhopper-rocket-launch-liability-insurance-faa-mandate-2019-8">safety</a> and other concerns, SpaceX mailed letters to residents offering to <a href="https://www.businessinsider.com/category/buyouts">buy out</a> their properties at three times their appraised value.</li><li>The buyout letter, obtained by Business Insider on Tuesday, states that the company "did not anticipate that local residents would experience significant disruption" from its presence.</li><li>Several <a href="https://www.businessinsider.com/spacex-elon-musk-texas-starship-mars-launch-site-pictures-2019-5">residents of the village</a> told Business Insider they do not plan to accept the offer, which expires in less than two weeks.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul><p>It takes a village to raise a rocket - or at least it does in South Texas, where SpaceX has built an experimental spaceport around a small community of residents.</p><p>Now, according to interviews with residents and <a href="https://www.documentcloud.org/documents/6418786-Spacex-Boca-Chica-Village-Texas-Buyout-Offer.html" target="_blank" rel="noopener">a proprietary offer letter</a> obtained by Business Insider, SpaceX is trying to buy as much of that town as it can and move the people out. But many of them say they may not accept the company's offer.</p><p></p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>SpaceX got approval in July 2014 to build a commercial spaceport and launch orbital-class rockets from the area. It soon abandoned that plan after a <a href="https://www.businessinsider.com/spacex-texas-starship-launch-site-development-challenges-2019-6">number of setbacks</a> and a push by Elon Musk, the company's founder, to develop a new, fully reusable, and <a href="https://www.businessinsider.com/spacex-starship-mars-landing-sites-map-hirise-2019-9">Mars-capable rocket system</a> called Starship.<p>Since then, SpaceX has built and launched a crude rocket-powered prototype called Starhopper <a href="https://www.businessinsider.com/spacex-starhopper-launch-video-youtube-live-video-feed-2019-8">as high as 500 feet in the air</a>. The company lifted the vehicle off a concrete pad it built near Boca Chica Beach, just 1 1/2 miles east of the nearest residence in the village.</p><p>But following an <a href="https://www.businessinsider.com/spacex-starhopper-rocket-launch-wildfires-texas-2019-7">accidental brush fire</a>, public safety notices <a href="https://www.businessinsider.com/spacex-starhopper-launch-sheriff-issues-explosion-risk-safety-warning-notice-2019-8">warning of possible explosions</a>, and a push to have the Federal Aviation Administration (FAA) approve <a href="https://www.businessinsider.com/spacex-starship-rocket-site-boca-chica-texas-faa-written-reevaluation-2019-8">orbital-class launches with larger rockets</a>, SpaceX is trying to buy out Boca Chica entirely.</p><h2>Why SpaceX is trying to buy a Texas retiree village</h2><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div><p>Residents both in-state and out-of-state told Business Insider they began receiving buyout offer letters by express mail on Monday. Though a commercial real-estate company called <a href="https://www.us.jll.com/en/about-jll" target="_blank" rel="noopener">JLL</a> appears to be handling the offers, SpaceX had the offers printed on its company letterhead. (Read the full cover letter at the end of this story.)</p><p>At least 10 residents who own about one-third of the homes in the area have received letters so far, though ostensibly all property owners in the vicinity of SpaceX's facilities were approached by the company about a buyout.&#xa0;</p><p>"When SpaceX first identified Cameron County as a potential spaceport location, we did not anticipate that local residents would experience significant disruption from our presence," the letter states. "However, it has become clear that expansion of spaceflight activities as well as compliance with Federal Aviation Administration and other public safety regulations will make it increasingly more challenging to minimize disruption to residents of the Village."</p><p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/spacex-elon-musk-texas-starship-mars-launch-site-pictures-2019-5">Elon Musk's SpaceX is developing giant Mars rockets in a sleepy town in southern Texas. Here's what it's like to visit.</a></em></p><p>Given that increased disruption to Boca Chica residents, it says, and a need to comply with public health and safety rules, "SpaceX would like to acquire the properties located in Boca Chica Village."</p><p>The letter added that SpaceX is "committed to a fair and equitable process for acquiring this real estate"&#xa0;and, to that end, the company hired an independent firm to appraise each property.</p><p></p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>"SpaceX is offering you three times the independently appraised fair market value of your property," the letter said. "The offer is good through two weeks from the date of this letter."<p>The note is dated September 12, indicating the cutoff date for the offer is September 26 - just two days before Musk is due to deliver a presentation on the Starship development program.</p><p>"The amount of this offer is not negotiable," the letter continues. "SpaceX believes that it is very important to offer the<br>same deal to all residents using a consistent approach for determining the amount offered for each property. This is the fairest approach."</br></p><p>For those who commit to a sale, SpaceX said it will cover closing and other real estate costs.</p><p>It also comes packaged with an additional perk:</p><p style="padding-left: 40px;">"SpaceX recognizes that your close proximity to its operations has offered a unique opportunity to experience at close-hand the development of what will be the world's most advanced rocket. In appreciation of your support, we will offer all residents of the Village who accept the purchase offer the opportunity to continue their connection with the development of Starship by extending an invitation to attend future private VIP launch viewing events that are unavailable to the&#xa0;public."</p><h2>Many villagers may not take SpaceX's deal, though</h2><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div><p>Although SpaceX seems to want to buy out the entire village, approximately 10 property owners plan not to accept the deal, and for a variety of reasons, residents told Business Insider.</p><p>Maria Pointer, who lives in Boca Chica and helps run <a href="https://www.facebook.com/SpaceXBocaChica/" target="_blank" rel="noopener">a Facebook group</a> that follows and generally supports SpaceX's activities, said her paperwork was "turned to mush" because it blew into a puddle and got soaked to the point of illegibility.</p><p>But she said if the replacement offer she is mailed is three times the appraised value of her and her husband Ray's property, then the couple will likely not accept the deal.&#xa0;</p><p></p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>"I really do want to get out of SpaceX's way, and I want them to succeed and do what they're supposed to do," said Pointer, who lives in the area year-round and plans to retire there. "But I also want them to support me also, and it's also not going to be at an eminent domain price."<p>Celia Johnson is another resident who plans not to accept the offer. Johnson was born and raised in nearby Brownsville, has lived part-time in her Boca Chica home since 1997, and has two sisters who also own homes there. She said the offer - and what she fears is a possible forced removal in the future if she declines it - makes it feel like her "dream home" is being taken away through a "hostile takeover."</p><p>"They determined what they are going to pay us for our homes and they give us a 2-week deadline to decide," Johnson said. "I am not going to be bullied into selling under their conditions."</p><p>Pointer said the offers do not account for the unique wilderness and view of Boca Chica, which sits less than two miles from a public beach, was peaceful and quiet before SpaceX arrived, and is surrounded by thousands of acres of coastal, bird-filled wildlife refuge. She also claims a handful of families do not have the financial means, even with a three-times-appraised-value offer, to buy equivalent properties elsewhere.</p><p>"They need to understand that most of this community has very limited income," she said. "We want to move on, just give us what we need to move on. I'm not going to go to a trailer or an apartment. I gave my life to this property. I gave it everything I had. Nobody else wanted to tame it."</p><p>Business Insider contacted SpaceX for comment, but the company did not immediately provide a statement.</p><h2>Read SpaceX's cover letter below:</h2><div><div id="DV-viewer-6418786-Spacex-Boca-Chica-Village-Texas-Buyout-Offer" class="DC-embed DC-embed-document DV-container"></div></div>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/elon-musk-mars-starship-spacex-starhopper-rocket-moon-2019-6">Elon Musk's multibillion-dollar Starship rocket could one day take people to the moon and Mars</a></h3>        <div>                    </div>    </div>

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