Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
After WeWork’s pre-IPO filing was revealed, industry experts weighed in on the possible outcome of the IPO, how it could affect the sector, and how other operators compare to the coworking giant.
Jeff Reinstein, CEO of Premier Workspaces, is one of the experts that has provided insight into how he views the upcoming IPO.
Reinstein has had led two shared workspaces that never had an unprofitable year, even during economic downturns, unlike WeWork.
“My focus has always been on generating free cash flow and sustainable self-funded growth,” said Reinstein. “Companies are soliciting hundreds of millions or even billions of dollars to maintain basic day-to-day operations and grow — often at the expense of cash flow and basic investment return. They are using investors money to buy revenues without any regard to cash flow or profits.”
Premier Workspaces follows a model that allows it to grow while maintaining positive cash flow, which is key to being successful in this industry according to Reinstein. It then reinvests those profits into new locations. Currently, the company has 91 locations on just a $4.3 million investment.
The company has acquired 50 other shared workspace companies over the past 17 years and used its marketing skills to prop up the firms that were struggling.
If WeWork’s IPO is successful, Reinstein believes it will be good for the industry. But with the firm losing nearly $2 billion a year, experiencing increasing expenses and membership decreases, who’s to say their losses won’t continue piling up?
