WeWork: A disruptive force in the global commercial real estate market

Overview 

WeWork began with a single property in New York focused on attracting small start-ups and freelance workers with its flexible workplace environments. The company has since emerged as a pioneering commercial real estate property manager with offices available to rent in over 111 cities as of Q2 2019. The original business structure of WeWork was directed at attracting innovative start-ups and independent workers, however since 2014 the company has successfully acquired the custom of large global organizations which now represent approximately 40% of WeWork memberships. 

WeWork is a leading the transformation of the commercial real estate market 

WeWork was founded in 2010 by Adam Neumann, Miguel McKelevy and Rebekah Neumann in SoHo, New York and in January 2019, the company rebranded as The We Company as it prepares to expand its services into the residential and educational real estate sectors. The company has grown at a prolific rate over the last decade thanks to its unique work spaces, growing community, office services and good early backing from investors. When the company was founded it owned just one building and quickly expanded throughout the US before moving internationally in 2014. 

Headwinds caused WeWork to reassess its future strategy 

Despite global expansion WeWork has encountered a number of obstacles inhibiting the group’s growth plans and questioning the company’s profitability. The organization received a large amount of media attention in 2018, some scrutinizing the companies’ viability as a publicly traded company. The We Company anticipated going for an IPO which would be valued at $47 billion, however in the months leading up to the IPO in September 2019, the company’s value was slashed between $15 billion - $20 billion. The drop in value eventually led to We Co postponing their much anticipated IPO as advised by investors Softbank. 

Table of Contents 

• Overview 
• WeWork is a leading the transformation of the commercial real estate market 
• Headwinds caused WeWork to reassess its future strategy 

FAQ’s 

Where WeWork had established a strong presence? 

In just eight years WeWork became the largest private occupier of corporate office space in Manhattan, New York; after it signed a lease for 258,344 square feet at 21 Penn Plaza taking the company’s total to 5.3m square feet of workspace in 2018.  

How much the We Company anticipated going for an IPO? 

The We Company anticipated going for an IPO which would be valued at $47 billion, however in the months leading up to the IPO in September 2019, the company’s value was slashed between $15 billion - $20 billion. The drop in value eventually led to We Co postponing their much anticipated IPO as advised by investors Softbank.