WeWork effect spreads to large companies

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WeWork effect spreads to large companies

November 12, 2018 - 09:58
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After WeWork company changed the approach to office space for freelancers and startups, large enterprises now more flexible in choosing working places for its employees, Bloomberg reports with the reference to global companies survey with 3,5 million of workers conducted by broker Knight Frank LLP.

Photo © Štefan Štefančík, CC0 1.0

After WeWork company changed the approach to office space for freelancers and startups, large enterprises now more flexible in choosing working places for its employees, Bloomberg reports with the reference to global companies survey with 3,5 million of workers conducted by broker Knight Frank LLP.

More than a half of surveyed companies think that about fifth of all offices will be represented by such non-traditional spaces very soon, while now its share is about 5%.

Offices of the future will be inspiring talented workers and will provide them with more freedom and choice, in order to increase productivity, experts assume.

Such trend is challenging largest landlords in the world, which traditionally made long-term leasing contracts, in order to get maximum value from the building and avoid risk of idle periods. It shall be noted that some landlords of London already offer part of their buildings as flexible space to adapt to changing demand.

WeWork, backed by Softbank Group Corp., demonstrates fast growing pace since it was founded in 2010. It offers its clients such incentives as community space, free beer and coffee, as well as global network. The company started working with startups and entrepreneurs, but now turned to large enterprises as well. Large banks including Citigroup Inc, HSBC Holdings Plc and Deutsche Bank AG, are now placing its employees, often working in IT area, into co-working space outside main offices.

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