While the majority of news headlines focused on the pitfalls of WeWork last year due to their failed IPO, one coworking operator has been successfully competing in the industry.
Chicago-based Novel Coworking became profitable less than a year after its founding in 2013 thanks to its ownership model. This allows it to not worry about rental payments and offer tenants cheaper rates.
“Every coworking company that has majorly competed in the U.S. rents their space,” said Novel Coworking founder and CEO Bill Bennett. “Then they break it up into smaller chunks and re-rent it. That left affordable out of the equation. My core idea was that someone should reinvent coworking.”
Currently, the company has raised $637 million in funding and while their financials are unknown, a representative said its net income was in the tens of million annually.
Bennett said that investors like that his company is profitable and that he is unaware of another national competitor that is as profitable.
The company currently spans 3.1 million square feet across the U.S. across 36 locations in 27 cities. Now it has plans to open 14 more locations by the end of 2020. According to Bennett, each Novel location takes less than a year to become profitable under the company’s model.
Despite being less expensive than its competitors, Novel still offers high quality amenities such as espresso bars, high speed internet, beer on tap and more.
