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So what's to stop a local real-estate investor, or twenty investors, from leasing ten office buildings in downtown Seattle long term and then subletting them sh
by DenisM 8y ago
So what's to stop a local real-estate investor, or twenty investors, from leasing ten office buildings in downtown Seattle long term and then subletting them short term?
Where is the WeWork moat? Buildout? Reception clerk? Meeting room reservation software? Demand forecast?
At some point the VCs will stop pouring money into it, WeWork will have to charge the full price, and then any old group of people with money can build a local WeWork clone. And unlike WeWork they won't be saddled with expectations of paying a return on the multi-billion investment spent on subsidies.
- xapata 8y agoIf it's so easy, why did no one do it before? Other than Regus, who didn't do it so well.
- jmalicki 8y agoOne useful thing about WeWork is I can drop into any location in the world several times a month and I'm already set up, I just point and click, and I'm ready to go. Croissant is an interesting aggregator that does this across smaller coworking spaces, but does require you spend some time getting set up each time you use a new space.
- fyfy18 8y agoI can do the same at Starbucks :-)
- DenisM 8y agoOr a library. That aside, percentage of WeWork tenants that ha e to travel is what? 2%?
- jmalicki 8y agoThen why bother getting a coworking space at all? Yet many do... The experience is night-and-day different... sure WeWork is more expensive than Starbucks (it costs about 5 Starbucks drinks a day), but the productivity difference is worth it.
- mlthoughts2018 8y agoI could see some defenses of WeWork, but surely not productivity! Having worked in a company fully based in a WeWork location in Boston, I can tell you WeWork basically is a complete stereotype of precisely all of the miserable, distraction-focused problems with open plan offices in general. For fun meetups and goofing around, they are nice spaces. For getting work done, it’s horrible, universally. People on my team would actively leave the WeWork office and walk to Starbucks to get work done, or more often just constantly work from home. Whatever VC <-> founder winking social signaling and sort of cookie cutter “look at how start-uppy and innovative we are” status signaling must be the driver of locating in WeWork and coworking spaces generally. It is clearly not related to productivity, quiet or private conditions conducive to engineering work, or basic workplace ergonomy or cognitive health.