The real estate market is sensitive in that it affects virtually everything around it. For example, if just one property sells for an above market price, the rest of the market will adjust its pricing.
Because of this, a building’s brand can’t stand on its own— it’s either propped up or undermined by the neighborhoods culture.
While properties can be influenced by the image of their surroundings, they can also influence who they rent it to. WeWork is a prime example of this. Their coworking locations bring jobs to specific neighborhoods and influence the environment as a whole.
“The vast majority of WeWork members are new to a neighborhood. Across New York City, Los Angeles, and Chicago, 70%-80% of members did not work in the neighborhood prior to joining WeWork,” according to the company.
Now, WeWork is trying to capture that same halo effect under its new name, The We Company. The rebranding includes its new initiative “Made By We” that acts as a “new town square.” It offers a central place that includes a retail space and gives members a chance to be apart of a tailored community.
The We Company’s plans inevitably drive up demand for their coworking spaces and gives them the opportunity to take advantage of the glowing after effects.