WeWork’s chief operating officer says that inflation is leading companies to take a “nimble” approach when it comes to their office footprint.
Taking up long-term office leases has historically been a major part of a company’s expenses, but the increased cost of maintaining, managing and bringing in bodies to occupy these spaces has made them less enticing.
“That … has put the need for companies to look at flexibility in managing and thinking about their workspace,” said Samit Chopra.
“Which is of course, guided by a revolution in the entire work culture and the hybrid work phenomenon that has taken place over the last few months.”
As a result of this workplace evolution, WeWork recently reported its revenue grew 37% from one year ago to $815 million during the second quarter.
But it’s not just startups that are making up the coworking and flexible office membership base – Chopra says that enterprise companies are increasingly leaning on these workspaces to cut costs and accommodate the growing demand for flexible work arrangements.
“Last year, the enterprise segment represented more than 45% of our global business. That part of our business has grown significantly over the last 2.5, 3 years,” said Chopra.
While the demand for coworking is growing internationally, specific regions are leading the shift. For instance, WeWork just launched its Asia flagship in Singapore as the region becomes a giant in the global economy.