Knotel Hopes to Break Even this Year
Bisnow reported this week that Knotel’s CEO, Amol Sarva, “expects his company to hit a critical milestone this year.” That milestone being that Knotels’s cash flow will break even this year. The news comes shortly after Knotel laid off a significant portion of its New York staff due to high vacancy rates and a drop in leasing activity. According to Sarva, Knotel’s New York business is expected to be cash-flow neutral in the first half of 2020. He further added that its San Francisco, London, and Paris businesses have already hit that mark.
WeWork to Phase out Free Beer and Wine in Its Spaces
Business Insider (paywall) was first to report that WeWork is phasing out free beer and wine taps in the US and Canada locations. Since co-Founder Adam Neumann was ousted as CEO, new company executives have focused on cutting costs through the WeWork operation, including selling several of the coworking giant’s side businesses. However, Business Insider reports that cutting out free alcohol wasn’t a financial decision for WeWork, but rather an effort to better cater to the needs of its members. Beer and wine will continue to be offered during WeWork’s happy hours, in addition to non-alcoholic beverages.
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Boston’s Coworking Boom Hits the Brakes
The Boston Globe reported this week that “in the five months since industry giant WeWork nearly imploded on the edge of a $20 billion-dollar stock offering, an industry that was rapidly transforming Boston’s commercial real estate scene has all but stopped in its tracks.” Coworking in Boston grew exponentially during 2018 and 2019 thanks to brands like Workbar, Knotel, and Industrious. However, these companies have slowed their expansion plans in the area and there’s little talk of any upcoming locations. This has left many wondering if the halt is a temporary thing or a more permanent one for coworking in Boston.Share this article