Sell for More News is a weekly blog series with interesting information from the world of commercial real estate.
This so-called pandemic has been tough on office properties including coworking centers. But from this challenge comes ingenuity.
WeWork, the behemoth of the coworking industry, is now trying to find its place in the future of work by making its office space available on demand.
WeWork on Demand
The company is expanding WeWork on Demand, which it piloted in New York City over the summer, to 160 of its locations in 11 cities.
Through the app, anyone can book a desk in a shared workspace for $29 per day or reserve a private meeting room starting at $10 per hour.
43 of the WeWorks that are available to book are in New York City, and the rest are scattered across Atlanta, Austin, Boston, Chicago, Denver, Los Angeles, Philadelphia, Seattle, D.C., and the Bay Area. The company says it plans to expand to several more locations around the U.S. and the world by next year.
While On Demand is a way for WeWork to make some money during pandemic-era telework, the company plans to keep it going even after the coronavirus is behind us.
WeWork is betting on a hybrid remote and in-person future of work
And the company is hoping that, on days when people don’t go into the office, they will grab space at a WeWork…instead of a coffee shop or the local library…to make some calls or just get out of the house.
The sharing economy has worked with cars and vacation homes, but you don’t see this kind of thing in commercial real estate. Office space leases are usually several years long.
WeWork is bullish about this new offering. During the NYC pilot, the company got 700 on-demand bookings in 60 days.
As a former owner and operator of two coworking centers…I think offering work spaces on demand makes a lot of financial sense. I can tell you that it hurts when offices sit empty. Most of the time filling an office, even for a day, is pure profit for the operator.
And many of those On Demand users may turn into monthly users in the future. I expect most Coworking Centers to use this technology when it becomes available for an affordable price.
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About Beau Beach, MBA CCIM
Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.
Beau leads Beachwood which is a commercial real estate broker for sellers in the Nashville, Milwaukee and South Florida markets.
He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.
Beau can be reached at 800-721-3287, click to schedule a call or Beau@BeachwoodSells.com