WeWork is widely known for its rapid expansion all over the world, but the company is facing stiff competition in Europe from IWG and other local operators as its IPO comes closer to becoming reality.
Currently, WeWork and IWG account for almost 78% of the European market, with WeWork taking up 6.5 million square feet, putting it ahead of IWG.
Other operators that are challenging these two big players are Blackstone Group’s The Office Group and Germany-based Design Offices, who share about 80,000 square meters of office space.
The company’s IPO will release more financial information that could work to the benefit of its rivals as it allows them to see how much WeWork spends to open new locations and its occupancy/retention rates.
“The IPO is a great milestone in the evolution of the flexible work-space scene,” said Tom Sleigh, head of consultancy on the industry at Colliers. “It’s a signal to other operators that they’re able to expand.”