Back To Daily Digest
Tags: BUSINESS

WeWork is growing into a one-stop-shop

About one year ago, WeWork announced it would be launching its new branch called Powered By We, a design, renovation and office management service.

This expansion from the company’s original coworking operations gave WeWork the opportunity to come to the customer. Traveling workers could set up shop somewhere better than a coffee shop.

Powered By We was the first step in WeWork’s endeavor into a variety of markets beyond shared workspaces to capitalize on its community.

WeWork currently has a $47 billion valuation thanks to massive funding from SoftBank. These investments have allowed the company to cut costs in a way that landlords can’t. Despite this, market experts are expecting an economic downturn and WeWork’s large spending could lead to even larger losses.

Its rebranding as “The We Company”, which includes its coliving spaces WeLive, WeWork and educational program WeGrow, marked the shift towards a becoming a one-stop-shop for all real estate needs.

Despite its clear path to success, critics believe WeWork is overvalued due to its annual losses.

The Latest News
Delivered To Your Inbox

“I can see why people would think that,” said Dave Fano, head of growth for WeWork. “If companies can reduce real estate costs and improve their employees’ work experience at the same time then that’s a win-win—regardless of the economic outlook.”

WeWork is also making its mark in the technology world by developing its client-facing office software as well as a suite of internal apps for its own operations. The company says technology sets them apart from other real estate companies.

As fixed offices start to dwindle, WeWork’s network has expanded into big corporations.

For example, global liquor brand Diageo has a variety of spaces throughout WeWork locations. Its New York space is used to host events for its numerous brands, including Bulleit Bourbon and Ketel One.

The We Company might be able to sustain on rent arbitrate even if it’s smaller companies go belly up according to Fano. Now that big companies are The We Company’s biggest revenue driver, will it be enough to withstand an economic downtown?

Latest on Daily Digest

What can agile working do for your office?

Agile working has transformed the idea of typical office models by allowing more flexibility, fostering creativity, attracting more diverse talent, and boosting morale.
CBRE’s coworking business gives landlords a say

CBRE has launched its new coworking company, Hana, which focuses on entering into partnerships with building owners to maintain a strong relationship with tenants.
Coworking grows further in the West Coast

While many flexible workspace providers have set their focuses on tech-heavy areas of the country, the San Diego and Orange County coworking markets are on the come up.
Convene co-founder takes a step back

Chris Kelly, co-founder and president of Convene, announced he would be taking a step back from his current role and focus on developing the company’s culture and brand.
WeWork is moving into the software business

Coworking operator WeWork recently acquired Euclid, which is a small analytics software company that allows businesses to track how their spaces are being utilized.
Knotel enters the West Coast market

WeWork rival shared office provider Knotel will officially enter the Los Angeles market with its new 12,388 square foot space on Santa Monica Boulevard.
Everyone wants a slice of the coworking life

As flexible office and coworking options continue to expand, many businesses and landlords are taking note of the success of the market and finding ways to benefit from it.
Luxury flex space operator enters Houston market

Firmspace, an Austin-based high-end flex office provider, has announced plans for a new Houston location within the city’s BBVA Compass Plaza office tower in Uptown.
UAE is joining the coworking phenomenon

As the digital age pushes real estate markets towards offering more space-as-a-service options for companies, Dubai is finding its footing in the rapidly growing market.
Healthy work environments no longer a luxury

In the past few years, incorporating health and wellness in the workplace through greenery, air quality and exercise has become priority in attracting young talent.
Savills launches coworking directory in the U.S.

Savills has entered the massive U.S. coworking market with Workthere, its program that allows businesses and clients to find the perfect workspace to suit their work.
Providing secondary cities with high-end coworking

Serendipity Labs offers high-end, upscale workplaces to underserved secondary markets and suburban areas, places that are barely untouched by major coworking operators.
Ad

FOLLOW US

  • Facebook
  • Twitter
  • LinkedIn
  • RSS
  • instagram
  • pinterest
Ad