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What The Commercial Real Estate World Can Learn From WeWork

Aayat AlibyAayat Ali
March 13, 2020
in News
Reading Time: 1 min read
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DDI

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WeWork had a less than ideal past year after postponing its long-awaited IPO, which led to its valuation plummeting and slowing down its leasing. While SoftBank has taken majority control of the company to keep it afloat, it has a long way to go

The coworking operator’s questionable growth-at-all-costs approach had surprisingly positioned it as one of the most highly valued startups in America, but has raised concern whether its growth is sustainable.

Regardless, despite what happens to WeWork in the future, it is clear that the coworking industry will continue to grow. Now, operators are adapting to more trustworthy models and the demand for flexible office is continuing to grow.

The aftermath of WeWork’s drawn out saga has offered commercial real estate leaders some valuable lessons.

First, it is imperative to make sure you have viable tenants to ensure that they will be able to pay their bills on time.  

Furthermore, be cautious if WeWork is already your tenant. If you have an asset and are looking to lease space, think about whether WeWork would be a wise addition.

Lastly, increased vacancies should be seen as opportunities. An empty space just provides landlords a chance to welcome new tenants, such as sustainable coworking companies, into the building.

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Aayat Ali

Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces.

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