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Buildings like WeWork have always existed. I remember being a teen and being shown the new 'office concept' in the early 2000s where you could just tap into an

Buildings like WeWork have always existed. I remember being a teen and being shown the new 'office concept' in the early 2000s where you could just tap into an office buildings internet infrastructure so you didn't need to rent your own T1 lines, you'd get a phone system and fax machines and all that for one flat fee. If WeWork goes bankrupt, the investors will get wiped out but some other company will buy the buildings and it'll continue existing

gav 3y ago
Regus has been around for a long time, I worked out of one of their offices in the mid-90s. The great thing was that shared office space was new to most people, so when clients would visit they'd be impressed with the fancy building, the marble reception, and the huge conference room, and not know we were a 2-person shop renting a 6'x8' office.
- EwanToo 3y ago
  It says something about the past few years that large established companies started renting premium space in WeWork buildings so they could imagine that they were a 2 person shop renting a 6'x8' office!
ssalka 3y ago
Good context to share. I'm on the younger side, so when I entered the work force I think basically WeWork popularized this concept beyond what it had been. At least, it was the first place to expose me to that kind of work environment, which previously I was unaware had existed.
- hx8 3y ago
  They did have a larger marketing budget than any other company offering their services.
jameshart 3y ago
WeWork doesn’t own the buildings, they lease space in them. The companies that own the buildings still have the problem of finding tenants, and WeWork let them access smaller tenants and thus a more diverse client portfolio than commercial real estate owners can normally be bothered to service. Leasing to WeWork is a ‘gig economy’ side-hustle for a big office building owner to monetize more of their space, same as driving for Uber works as a side hustle for humans who want to monetize more of their time, or Airbnb lets homeowners side hustle to monetize their spare room. Question is if without WeWork those buildings would continue to offer those services directly, sign on with a competitor platform, or do something else. Maybe now WeWork has shown the opportunity, building owners would be prepared to leverage the platform to access the short term tenant base without requiring that WeWork lease the space first. After all, you don’t have Uber pay to lease your vehicle or AirBnb sign a lease on your spare room before you join up to their platforms. All of which suggests that WeWork actually has a pretty strong case for renegotiating their leases - they have their subletting revenue they can split with the property owner as leverage.
- IG_Semmelweiss 3y ago
  well said. The timing may be perfect for this in some markets. Then they could really become the SaaS (+services?) company they always pretended to be.

gav 3y ago

Regus has been around for a long time, I worked out of one of their offices in the mid-90s. The great thing was that shared office space was new to most people, so when clients would visit they'd be impressed with the fancy building, the marble reception, and the huge conference room, and not know we were a 2-person shop renting a 6'x8' office.

EwanToo 3y ago
It says something about the past few years that large established companies started renting premium space in WeWork buildings so they could imagine that they were a 2 person shop renting a 6'x8' office!

ssalka 3y ago

Good context to share. I'm on the younger side, so when I entered the work force I think basically WeWork popularized this concept beyond what it had been. At least, it was the first place to expose me to that kind of work environment, which previously I was unaware had existed.

hx8 3y ago
They did have a larger marketing budget than any other company offering their services.

jameshart 3y ago

WeWork doesn’t own the buildings, they lease space in them. The companies that own the buildings still have the problem of finding tenants, and WeWork let them access smaller tenants and thus a more diverse client portfolio than commercial real estate owners can normally be bothered to service. Leasing to WeWork is a ‘gig economy’ side-hustle for a big office building owner to monetize more of their space, same as driving for Uber works as a side hustle for humans who want to monetize more of their time, or Airbnb lets homeowners side hustle to monetize their spare room. Question is if without WeWork those buildings would continue to offer those services directly, sign on with a competitor platform, or do something else. Maybe now WeWork has shown the opportunity, building owners would be prepared to leverage the platform to access the short term tenant base without requiring that WeWork lease the space first. After all, you don’t have Uber pay to lease your vehicle or AirBnb sign a lease on your spare room before you join up to their platforms. All of which suggests that WeWork actually has a pretty strong case for renegotiating their leases - they have their subletting revenue they can split with the property owner as leverage.

IG_Semmelweiss 3y ago
well said. The timing may be perfect for this in some markets. Then they could really become the SaaS (+services?) company they always pretended to be.