• Events
  • Marketplace
  • Resources
  • Press Releases
  • Business Directory
  • Advertise
  • About Us
  • Contact
  • Submit to Allwork.Space
Thursday, March 23, 2023
Allwork.Space
The FUTURE OF WORK® since 2003
Find A Flexible Office Here
  • All Topics
    • Business
    • Biophilic Design
    • Career Growth
    • Coliving
    • Collaboration
    • Coworking
    • CRE
    • DE&I
    • Digital Nomads
    • Future of Work
    • Home Office
    • Human Resources (HR)
    • Hybrid Work
    • Investment
    • Leadership
    • Marketing
    • Mental Health
    • Mergers & Acquisitions
    • Office Furniture
    • Productivity
    • PropTech
    • Remote Work
    • Self-care
    • SMBs
    • Social Impact
    • Space-as-a-Service
    • Technology
    • Virtual Office
    • Work-life Balance
    • Workforce
    • Workplace Design
    • Workplace Wellness
  • News
  • Business
    The Million-Dollar Mistake Businesses In California Cannot Afford To Make: Compliance Deadline Approaching!

    The Million Dollar-Mistake Businesses In California Cannot Afford To Make: Compliance Deadline Approaching!

    How Africa’s Economy will Harness Digital Tech in the Future of Work

    How Africa’s Economy will Harness Digital Tech in the Future of Work

    Flexible Work and Investment in ESG are Driving Profitability for this Global Brand

    Flexible Work and Investment in ESG are Driving Profitability for this Global Brand

    Disney’s Imagination Has Failed

    Disney’s Imagination Has Failed

    Can COVID Booster Shots Save Your Business?

    Can COVID Booster Shots Save Your Business? 

    Three Culture-Building Steps To Create A World-Class Company

    Three Culture-Building Steps To Create A World-Class Company

    How To Manage Partnership Risks In The Future Of Work

    How To Manage Partnership Risks In The Future Of Work

    What It Takes To Be A Hybrid LeaderWhat It Takes To Be A Hybrid Leader

    Dr. Gleb Tsipursky CEO Of Disaster Avoidance Experts | What It Takes To Be A Hybrid Leader

    HR Leaders Share How New Salary Transparency Laws Have Changed Everything

    HR Leaders Share How New Salary Transparency Laws Have Changed Everything

  • Work-life
    Build The Best Work Playlist: 8 Songs To Avoid And 10 To Blast

    Build The Best Work Playlist: 8 Songs To Avoid And 10 To Blast

    Escape The Lingering Cold In These 7 Countries Perfect For Remote Work

    Escape The Lingering Cold In These 7 Countries Perfect For Remote Work

    Say Goodbye Comfy Pants – 9 in 10 Companies Planning RTO This Year

    Say Goodbye Comfy Pants – 9 in 10 Companies Planning RTO This Year

    Remote Work Is Just E-Commerce Déjà Vu All Over Again

    Remote Work Is Just E-Commerce Déjà Vu All Over Again

    Four Days Is Enough

    Four Days Is Enough

    The CDC’s Vision For The Future Of Worker Health

    The CDC’s Vision For The Future Of Worker Health

    Will Influencers Be The New Recruiters In The Future Of Work?

    Will Influencers Be The New Recruiters In The Future Of Work?

    Office Party Etiquette Matters All Year

    Office Party Etiquette Matters All Year

    Fun Promises Won’t Get Your Employees Back To The Office

    Fun Promises Won’t Get Your Employees Back To The Office

  • Tech
    Paving the Way for the Future of the Workplace With the Metaverse

    Paving the Way for the Future of the Workplace With the Metaverse

    What You Need To Know About Web3 And Finding Great Developers

    What You Need To Know About Web3 And Finding Great Developers

    The Price Of Remote Work? Your Privacy

    The Price Of Remote Work? Your Privacy

    Should You Put Your Job On AI-Pilot Mode?

    Should You Put Your Job On AI-Pilot Mode?

    3 Steps To Build A Three-Dimensional Hybrid Workplace

    3 Steps To Build A Three-Dimensional Hybrid Workplace

    PETER MISCOVICH

    Peter Miscovich JLL Global Future Of Work Leader | The Hybrid Workplace Evolution: Unlocking The Future Of Work

    AI Is Transforming The Future Of Industrial Work

    AI Is Transforming The Future Of Industrial Work

    Reimagining Offices for Hybrid Work

    Reimagining Offices for Hybrid Work: Frameable.com CEO on the Future of Virtual Offices

    How AI Can Help The Humans Within Human Resources

    HR Professionals Are Burned Out. Can A.I. Help?

  • Design
    Ryan Anderson, Vice President of Global Research and Insights at Miller Knoll, explains the importance of getting the data to build a full picture of employee and company needs before designing the workspace — and how to do it.

    Unlocking Inclusive Design With Data: 6 Steps To Power Your Workplace

    The Powerful Impact Of Mood-boosting Office Designs

    The Powerful Impact Of Mood-boosting Office Designs

    What Can Workplace Design Practitioners Learn From Human Psychology?

    What Can Workplace Design Practitioners Learn From Human Psychology?

    Navigating The Complexity Of The Hybrid Workplace Design Process

    Navigating The Complexity Of The Hybrid Workplace Design Process

    The Gardens, 780 3rd Avenue, New York, NY 10017

    Coworking Spotlight: The Clearing in NYC Focuses on Hospitality

    The Secret Formula To Determine How (And How Often) Your Employees Should Work In The Office

    The Secret Formula To Determine How (And How Often) Your Employees Should Work In The Office

    Create A Neurodiverse Friendly Office In Just One Minute

    Start Creating A Neurodiverse Friendly Office In Just One Minute

    Get Employee Buy-in To Make Office Redesigns Matter

    Get Employee Buy-in To Make Office Redesigns Matter

    How To Make Your Hybrid Office Accessible To All

    How To Make Your Hybrid Office Accessible To All

  • Workforce
    New Study Shows Managers Are Changing Their Minds About The Hybrid Work Model

    New Study Shows Managers Are Changing Their Minds About The Hybrid Work Model

    Data-based Strategies to Manage Talent, Workplace Experience

    Data-based Strategies To Manage Talent, Workplace Experience

    Meditation Apps: Workplace Fad Or The Key To A Happier Workforce?

    Meditation Apps: Workplace Fad Or The Key To A Happier Workforce?

    Culturally Diverse Workforces Require Bespoke Mental Health Support

    Culturally Diverse Workforces Require Bespoke Mental Health Support

    Dispelling the False Narrative About Working Two Remote Jobs

    Dispelling the False Narrative About Working Two Remote Jobs

    4 Challenges in Navigating Remote Work Layoffs

    4 Challenges in Navigating Remote Work Layoffs

    Level Up To Reduce Stress — How to Convince Your Boss Video Games Belong At Work

    Level Up To Reduce Stress — How to Convince Your Boss Video Games Belong At Work

    Programming Strategies For A Happy Workplace

    Programming Strategies For A Happy Workplace

    The Rise of Work From Home Jobs For Disabled Adults: A Powerful Solution For Inclusive Employment

    The Rise of Work From Home Jobs For Disabled Adults: A Powerful Solution For Inclusive Employment

  • Coworking
    3 Tech Tools Coming To Coworking Centers In The Future Of Work

    3 Tech Tools Coming To Coworking Centers In The Future Of Work

    Top 3 Global Coworking Hotspots

    Top 3 Global Coworking Hotspots

    Will The Cascade Of Bank Collapses Break The Coworking Industry?

    Will The Cascade Of Bank Collapses Break The Coworking Industry?

    5 Top Software Picks To Revolutionize Your Coworking Space Management In 2023

    5 Top Software Picks To Revolutionize Your Coworking Space Management In 2023

    Can WeWork Survive?

    Can WeWork Survive?

    Ambient Scenting Makes Sense For Coworking Management

    Ambient Scenting Makes Sense For Coworking Management

    Coworking Explained: What Is It And Why Should You Start?

    Coworking Explained: What Is It And Why Should You Start?

    The Most Important Coworking Perk Of 2023: Brain Breaks

    The Most Important Coworking Perk Of 2023: Brain Breaks

    6 Benefits Of Embracing AI In Your Coworking Space

    6 Benefits Of Embracing AI In Your Coworking Space

  • Marketing
    8 Reasons Why Sponsored Content Is Worth The Investment For Your Brand

    8 Reasons Why Sponsored Content Is Worth The Investment For Your Brand

    Instagram GenZ

    2023 Instagram Trends Reveal How To Market To Gen Z

    2023 Future Of Work Forecast: Focus Marketing On Values and Customer Experience, Not The Product

    2023 Future Of Work Forecast: Focus Marketing On Values and Customer Experience, Not The Product

    Want Your Coworking Newsletter to Actually Convert

    Want Your Coworking Newsletter to Actually Convert? Start by Keeping It Simple, Fun, and Consistent

    5 Pros Share How To Use Instagram To Grow Your Coworking Business

    5 Pros Share How To Use Instagram To Grow Your Coworking Business

    Want To Wow Coworking Members

    Want To “Wow” Coworking Members? It All Starts With (The Right) Insights

    6 Free, High-Quality Photo Sites To Level Up Your Marketing

    6 Free, High-Quality Photo Sites To Level Up Your Marketing

    The Creator Economy Is Dramatically Changing Marketing Practices, Here’s Why

    The Creator Economy Is Dramatically Changing Marketing Practices, Here’s Why

    Everything You Need To Know About Google My Business, And How To Ace It

    Everything You Need To Know About Google My Business, And How To Ace It

  • CRE
    75% Of Business Leaders Lack Data Needed For Crucial CRE Decisions

    75% Of Business Leaders Lack Data Needed For Crucial CRE Decisions

    Rapid Work Style Shifts Are Tanking Tax Revenues — Can City Planners Catch Up?

    Rapid Work Style Shifts Are Tanking Tax Revenues — Can City Planners Catch Up?

    San Francisco Skyline

    The Future of Commercial Real Estate in San Francisco Doesn’t Look Good

    3 Things CRE Players Must Do To Stay Relevant In 2023

    2023 Future Of Work Forecast: 3 Things CRE Players Must Do To Stay Relevant In 2023

    The Office Space Sector Is Projected To See A Strong Fourth Quarter In 2022

    The Office Space Sector Is Projected To See A Strong Fourth Quarter In 2022

    Meet Flex Space More Chaotic Cousin Gray Spaces

    Meet Flex Space’s More Chaotic Cousin: Gray Spaces

    The Future Of Our Offices And Our Planet Hinges On The Real Estate Industry Priorities

    The Future Of Our Offices — And Our Planet — Hinges On The Real Estate Industry’s Priorities

    JLL New Future Of Work Survey The Next Few Years Are Crucial For Commercial Real Estate (2)

    JLL’s New Future Of Work Survey: The Next Few Years Are Crucial For Commercial Real Estate

    What Is The Impact Of Hybrid Working On Space Optimization

    What Is The Impact Of Hybrid Working On Space Optimization?

  • Podcast
  • Subscribe
  • All Topics
    • Business
    • Biophilic Design
    • Career Growth
    • Coliving
    • Collaboration
    • Coworking
    • CRE
    • DE&I
    • Digital Nomads
    • Future of Work
    • Home Office
    • Human Resources (HR)
    • Hybrid Work
    • Investment
    • Leadership
    • Marketing
    • Mental Health
    • Mergers & Acquisitions
    • Office Furniture
    • Productivity
    • PropTech
    • Remote Work
    • Self-care
    • SMBs
    • Social Impact
    • Space-as-a-Service
    • Technology
    • Virtual Office
    • Work-life Balance
    • Workforce
    • Workplace Design
    • Workplace Wellness
  • News
  • Business
    The Million-Dollar Mistake Businesses In California Cannot Afford To Make: Compliance Deadline Approaching!

    The Million Dollar-Mistake Businesses In California Cannot Afford To Make: Compliance Deadline Approaching!

    How Africa’s Economy will Harness Digital Tech in the Future of Work

    How Africa’s Economy will Harness Digital Tech in the Future of Work

    Flexible Work and Investment in ESG are Driving Profitability for this Global Brand

    Flexible Work and Investment in ESG are Driving Profitability for this Global Brand

    Disney’s Imagination Has Failed

    Disney’s Imagination Has Failed

    Can COVID Booster Shots Save Your Business?

    Can COVID Booster Shots Save Your Business? 

    Three Culture-Building Steps To Create A World-Class Company

    Three Culture-Building Steps To Create A World-Class Company

    How To Manage Partnership Risks In The Future Of Work

    How To Manage Partnership Risks In The Future Of Work

    What It Takes To Be A Hybrid LeaderWhat It Takes To Be A Hybrid Leader

    Dr. Gleb Tsipursky CEO Of Disaster Avoidance Experts | What It Takes To Be A Hybrid Leader

    HR Leaders Share How New Salary Transparency Laws Have Changed Everything

    HR Leaders Share How New Salary Transparency Laws Have Changed Everything

  • Work-life
    Build The Best Work Playlist: 8 Songs To Avoid And 10 To Blast

    Build The Best Work Playlist: 8 Songs To Avoid And 10 To Blast

    Escape The Lingering Cold In These 7 Countries Perfect For Remote Work

    Escape The Lingering Cold In These 7 Countries Perfect For Remote Work

    Say Goodbye Comfy Pants – 9 in 10 Companies Planning RTO This Year

    Say Goodbye Comfy Pants – 9 in 10 Companies Planning RTO This Year

    Remote Work Is Just E-Commerce Déjà Vu All Over Again

    Remote Work Is Just E-Commerce Déjà Vu All Over Again

    Four Days Is Enough

    Four Days Is Enough

    The CDC’s Vision For The Future Of Worker Health

    The CDC’s Vision For The Future Of Worker Health

    Will Influencers Be The New Recruiters In The Future Of Work?

    Will Influencers Be The New Recruiters In The Future Of Work?

    Office Party Etiquette Matters All Year

    Office Party Etiquette Matters All Year

    Fun Promises Won’t Get Your Employees Back To The Office

    Fun Promises Won’t Get Your Employees Back To The Office

  • Tech
    Paving the Way for the Future of the Workplace With the Metaverse

    Paving the Way for the Future of the Workplace With the Metaverse

    What You Need To Know About Web3 And Finding Great Developers

    What You Need To Know About Web3 And Finding Great Developers

    The Price Of Remote Work? Your Privacy

    The Price Of Remote Work? Your Privacy

    Should You Put Your Job On AI-Pilot Mode?

    Should You Put Your Job On AI-Pilot Mode?

    3 Steps To Build A Three-Dimensional Hybrid Workplace

    3 Steps To Build A Three-Dimensional Hybrid Workplace

    PETER MISCOVICH

    Peter Miscovich JLL Global Future Of Work Leader | The Hybrid Workplace Evolution: Unlocking The Future Of Work

    AI Is Transforming The Future Of Industrial Work

    AI Is Transforming The Future Of Industrial Work

    Reimagining Offices for Hybrid Work

    Reimagining Offices for Hybrid Work: Frameable.com CEO on the Future of Virtual Offices

    How AI Can Help The Humans Within Human Resources

    HR Professionals Are Burned Out. Can A.I. Help?

  • Design
    Ryan Anderson, Vice President of Global Research and Insights at Miller Knoll, explains the importance of getting the data to build a full picture of employee and company needs before designing the workspace — and how to do it.

    Unlocking Inclusive Design With Data: 6 Steps To Power Your Workplace

    The Powerful Impact Of Mood-boosting Office Designs

    The Powerful Impact Of Mood-boosting Office Designs

    What Can Workplace Design Practitioners Learn From Human Psychology?

    What Can Workplace Design Practitioners Learn From Human Psychology?

    Navigating The Complexity Of The Hybrid Workplace Design Process

    Navigating The Complexity Of The Hybrid Workplace Design Process

    The Gardens, 780 3rd Avenue, New York, NY 10017

    Coworking Spotlight: The Clearing in NYC Focuses on Hospitality

    The Secret Formula To Determine How (And How Often) Your Employees Should Work In The Office

    The Secret Formula To Determine How (And How Often) Your Employees Should Work In The Office

    Create A Neurodiverse Friendly Office In Just One Minute

    Start Creating A Neurodiverse Friendly Office In Just One Minute

    Get Employee Buy-in To Make Office Redesigns Matter

    Get Employee Buy-in To Make Office Redesigns Matter

    How To Make Your Hybrid Office Accessible To All

    How To Make Your Hybrid Office Accessible To All

  • Workforce
    New Study Shows Managers Are Changing Their Minds About The Hybrid Work Model

    New Study Shows Managers Are Changing Their Minds About The Hybrid Work Model

    Data-based Strategies to Manage Talent, Workplace Experience

    Data-based Strategies To Manage Talent, Workplace Experience

    Meditation Apps: Workplace Fad Or The Key To A Happier Workforce?

    Meditation Apps: Workplace Fad Or The Key To A Happier Workforce?

    Culturally Diverse Workforces Require Bespoke Mental Health Support

    Culturally Diverse Workforces Require Bespoke Mental Health Support

    Dispelling the False Narrative About Working Two Remote Jobs

    Dispelling the False Narrative About Working Two Remote Jobs

    4 Challenges in Navigating Remote Work Layoffs

    4 Challenges in Navigating Remote Work Layoffs

    Level Up To Reduce Stress — How to Convince Your Boss Video Games Belong At Work

    Level Up To Reduce Stress — How to Convince Your Boss Video Games Belong At Work

    Programming Strategies For A Happy Workplace

    Programming Strategies For A Happy Workplace

    The Rise of Work From Home Jobs For Disabled Adults: A Powerful Solution For Inclusive Employment

    The Rise of Work From Home Jobs For Disabled Adults: A Powerful Solution For Inclusive Employment

  • Coworking
    3 Tech Tools Coming To Coworking Centers In The Future Of Work

    3 Tech Tools Coming To Coworking Centers In The Future Of Work

    Top 3 Global Coworking Hotspots

    Top 3 Global Coworking Hotspots

    Will The Cascade Of Bank Collapses Break The Coworking Industry?

    Will The Cascade Of Bank Collapses Break The Coworking Industry?

    5 Top Software Picks To Revolutionize Your Coworking Space Management In 2023

    5 Top Software Picks To Revolutionize Your Coworking Space Management In 2023

    Can WeWork Survive?

    Can WeWork Survive?

    Ambient Scenting Makes Sense For Coworking Management

    Ambient Scenting Makes Sense For Coworking Management

    Coworking Explained: What Is It And Why Should You Start?

    Coworking Explained: What Is It And Why Should You Start?

    The Most Important Coworking Perk Of 2023: Brain Breaks

    The Most Important Coworking Perk Of 2023: Brain Breaks

    6 Benefits Of Embracing AI In Your Coworking Space

    6 Benefits Of Embracing AI In Your Coworking Space

  • Marketing
    8 Reasons Why Sponsored Content Is Worth The Investment For Your Brand

    8 Reasons Why Sponsored Content Is Worth The Investment For Your Brand

    Instagram GenZ

    2023 Instagram Trends Reveal How To Market To Gen Z

    2023 Future Of Work Forecast: Focus Marketing On Values and Customer Experience, Not The Product

    2023 Future Of Work Forecast: Focus Marketing On Values and Customer Experience, Not The Product

    Want Your Coworking Newsletter to Actually Convert

    Want Your Coworking Newsletter to Actually Convert? Start by Keeping It Simple, Fun, and Consistent

    5 Pros Share How To Use Instagram To Grow Your Coworking Business

    5 Pros Share How To Use Instagram To Grow Your Coworking Business

    Want To Wow Coworking Members

    Want To “Wow” Coworking Members? It All Starts With (The Right) Insights

    6 Free, High-Quality Photo Sites To Level Up Your Marketing

    6 Free, High-Quality Photo Sites To Level Up Your Marketing

    The Creator Economy Is Dramatically Changing Marketing Practices, Here’s Why

    The Creator Economy Is Dramatically Changing Marketing Practices, Here’s Why

    Everything You Need To Know About Google My Business, And How To Ace It

    Everything You Need To Know About Google My Business, And How To Ace It

  • CRE
    75% Of Business Leaders Lack Data Needed For Crucial CRE Decisions

    75% Of Business Leaders Lack Data Needed For Crucial CRE Decisions

    Rapid Work Style Shifts Are Tanking Tax Revenues — Can City Planners Catch Up?

    Rapid Work Style Shifts Are Tanking Tax Revenues — Can City Planners Catch Up?

    San Francisco Skyline

    The Future of Commercial Real Estate in San Francisco Doesn’t Look Good

    3 Things CRE Players Must Do To Stay Relevant In 2023

    2023 Future Of Work Forecast: 3 Things CRE Players Must Do To Stay Relevant In 2023

    The Office Space Sector Is Projected To See A Strong Fourth Quarter In 2022

    The Office Space Sector Is Projected To See A Strong Fourth Quarter In 2022

    Meet Flex Space More Chaotic Cousin Gray Spaces

    Meet Flex Space’s More Chaotic Cousin: Gray Spaces

    The Future Of Our Offices And Our Planet Hinges On The Real Estate Industry Priorities

    The Future Of Our Offices — And Our Planet — Hinges On The Real Estate Industry’s Priorities

    JLL New Future Of Work Survey The Next Few Years Are Crucial For Commercial Real Estate (2)

    JLL’s New Future Of Work Survey: The Next Few Years Are Crucial For Commercial Real Estate

    What Is The Impact Of Hybrid Working On Space Optimization

    What Is The Impact Of Hybrid Working On Space Optimization?

  • Podcast
  • Subscribe
No Result
View All Result
Allwork.Space
No Result
View All Result
  • News
  • Business
  • Work-life
  • Tech
  • Design
  • Workforce
  • Coworking
  • Marketing
  • CRE
  • Podcast
  • Subscribe
Nexudus Ad
Home Coworking

WeWork’s Stock Is Plummeting Despite Flexible Workspace Industry Growth

Demand for flexible workspaces has eclipsed pre-pandemic levels, but WeWork is still reporting losses of more than $500 million.

byJonathan Price
August 10, 2022
in Coworking
Reading Time: 5 mins read
A A
WeWork Stock Is Plummeting Despite Industry Growth
Share on FacebookShare on TwitterShare to Network
  • Over the past year, WeWork Inc.’s stock has traded down from around $15.00 to around $5.00, a fall of two-thirds — twice as far as the market average. 
  • Demand for flexible workspace is eclipsing pre-pandemic levels and contractual occupancy rates have remained above pre-pandemic levels for the third quarter in a row. 
  • When WeWork’s stock crashed, it fell from such a height that it did a lot of damage, most notably to Softbank, its largest shareholder. 

Over the past year, WeWork Inc.’s (WE) stock has traded down from around $15.00 to around $5.00, a fall of two-thirds, compared to a fall of one-third in the S&P 500 over the same period. WE has fallen twice as far as the market average. Why? 

As a comparison, its main global rival, IWG plc (owner of Regus and Spaces brands), has fallen by just under half. To be fair, though, IWG’s principal listing is in London and the FTSE 100 is slightly above where it was a year ago. So relative to each company’s main market, they are about even. Evenly bad, that is. 

The other principal coworking company Servcorp, listed in its Australian home market, is a touch below where it was a year ago, though it has been 50% higher during the last 52 weeks. Its market cap at £180 million sterling ($216 million) makes it a minnow compared to IWG £1.9 billion ($2.28 billion) and WE £3.5 billion ($4.2 billion). 

Advertise on Allwork.Space 2023

What do these falling stock prices mean for coworking?  

You would be justified in thinking that the share price movements indicate a problem in the coworking business, but on the ground, trading conditions remain positive. The leading agent in this sector in the U.K., Douglas Green, has been in the business longer even than my own 22 years, and his views are therefore worth paying attention to.  

Green recently posted on LinkedIn his take on some new research from Instant Group and chose to highlight a number of key points: 

  • Demand for flexible workspace is eclipsing pre-pandemic levels and contractual occupancy rates have remained above pre-pandemic levels for the third quarter in a row. Amenity-rich spaces deliver the highest occupancy rates: 82% vs. 74% in traditional spaces. 
  • Average prices are rising — London West End desk rate: £690 (+5% vs. previous six months), City: £607 (+3%). In the regions: Liverpool: +17%, Cardiff: +6%, Bristol: +4%, Edinburgh: +11%, Leeds: +14%, Manchester: +4% 
  • The average price per private office desk in the U.K. was £525 in H1 2022 up 22% year-over-year, surpassing pre-Covid prices by 13%. Regional desk rates reached £298, a rise of 17% year-over-year 
  • There are now over 6,000 flexible workspaces across the U.K., with a forecast of over 9,000 by 2026. That’s a growth of 50% in three years. 

Douglas’s overall conclusion, with which I fully concur, was that “this data provides more proof of the extraordinary growth of the Flex sector, and is consistent with my previous prediction that the industry will double in size over the next five years.”  

The data he quoted is all U.K. derived, but I doubt that it is much different in the U.S. market, as the Covid effect is still keeping workers away from major city center offices in both countries. 

The impact of WeWork’s crash 

So, again, why has the WE share price fallen so far? Part of the reason is that it had further to fall than IWG’s. Under the leadership of its founder Adam Neumann, WE’s share price had risen to levels normally reserved for revolutionary tech giants. So when it crashed down to earth, it fell from such a height that it did a lot of damage, most notably to Softbank, its largest shareholder. 

It would be logical to assume that if a major company bites the dust in a spectacular fashion, its rivals would benefit, but this did not happen with IWG. Perhaps because the market was left wondering if there was a problem with the business model itself? Guilt by association. 

How do WeWork’s and IWG’s financials compare?  

Turning now to the financials, both companies were in the red at the end of 2021, but WE has never made a profit in its history and IWG was profitable before the pandemic struck. It will be interesting to compare their performance from the beginning of this year, once the market has had time to digest the IWG interim numbers, which came out this week. As of January 2022, their annual revenues were almost the same: $2.7 billion.  

IWG used those revenues to make a gross profit of $292 million, but WE recorded a loss of $515 million, nicely illustrating one of the major problems the post-Neumann board has to tackle — an inflated cost base.  

To give it credit, the board has managed to shave half a billion off the peak 2020 costs number, but it remains 50% higher than IWG’s; future cost cutting is bound to get progressively more difficult. 

Unlike Adam Neumann, IWG’s Mark Dixon has probably never been thought of as angelic, but he has in his own way been a visionary — even if the vision was more prosaic than WeWork’s “elevating the world’s consciousness.”  

The latest manifestation of the Dixonian vision can be seen in the merger with Instant Group and daVinci Virtual, which I take as a recognition of how important the role of technology will be in the future as a driver of income and value for space providers.  

If IWG can drive revenues and efficiencies with technology (as some of the smaller private businesses in this space have done), it may prove to be the game changer that franchising, its last major initiative, has so far not been.  

At the risk of repeating myself, I can still see no justification for the gap in market cap. between WE and IWG. It did not surprise me that IWG was profitable in H1 2022, at least at the operating level; it is not conceivable that WE will be.  

Private equity firms have looked at IWG before, but so far none have bid. I will never really understand what they saw in WE under Adam Neumann, nor why they find it so difficult to do a deal with Mark Dixon. 

Tags: BusinessCoworkingInvestment
Jonathan Price

Jonathan Price

Jonathan is a Chartered Fellow of the Chartered Institute for Securities & Investment and was responsible for the world’s first ever public fund for investment in coworking space. Today he acts as a specialist consultant and is a visiting professor at a leading French business school.

No Result
View All Result

How will work change in 2023?

Subscribe today to know what's changing tomorrow.

* indicates required
100% FREE. You can unsubscribe or manage your preferences at any time.
Fiverr Ad
Podcast Promo FOWP 300x250
Grammarly Advertisement
UltraSoft June

Latest News

Accenture Cuts 19,000 Jobs

Accenture Cuts 19,000 Jobs

March 23, 2023
Future Queen Of England Urges Business Leaders To Prioritize Workplace Wellbeing

Future Queen Of England Urges Business Leaders To Prioritize Workplace Wellbeing

March 23, 2023
Indeed Will Cut 2,200 Jobs

Indeed Will Cut 2,200 Jobs

March 23, 2023
French President Wants Companies To Share More Profits With Workers

French President Wants Companies To Share More Profits With Workers

March 22, 2023
IWG Adds 34 New Spaces

IWG Adds 34 New Spaces

March 22, 2023
Layoffs Are A Worldwide Reality

Layoffs Are A Worldwide Reality

March 22, 2023
We Reviewed FlexiSpot’s Pro Plus Standing Desk (E7)

News and Features

Business

Tech

Marketing

Design

Work-life

CRE

Coworking

Workforce

Daily Digest

Podcast

Resources

Marketplace

Events

Press Releases

FlexSpace, Coworking
and Office Space

Los Angeles

New York

Chicago

Washington, D.C.

Houston

Dallas

Miami

San Francisco

Atlanta

Philadelphia

Seattle

Austin

Company

About Us

Submit to Allwork.Space

Contact

Advertise

FlexSpace

Terms Of Use

FlexSpace FAQs

Privacy Policy

Connect with Allwork.Space

Twitter

Linkedin

Facebook

Instagram

YouTube

Apple Podcasts

Spotify

Google Podcasts

©2022 Allwork.Space  l  Exploring the FUTURE OF WORK® since 2003.

No Result
View All Result
  • News
  • Podcasts
  • Events
  • Resources
  • Marketplace
  • Business Directory
  • Subscribe
  • Advertise
  • Find Space
  • About Us
  • Submit to Allwork.Space

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00