WEWORK took the real estate world by storm on its way to an initial public offering that’s set to be among the year’s biggest.
In the US, the flexible-office sector has grown an average of 23 per cent each year since 2010, the year WeWork was founded, Jones Lang LaSalle reported.
Public information on the profitability and sustainability of its business has been limited, so the limelight on WeWork’s financials is likely to reflect on its rivals as well, he said.
“WeWork’s competitors need to continue raising capital to grow their business,” Mr Ismail said, “And depending on how WeWork is received by the public market, it could help or hurt their peers”.
“That’s a market that’s deemed to be very competitive. It is the home of WeWork, so by WeWork and others talking more in the market, it generates more business for us.”
“If WeWork’s IPO does really well, it’s a huge lift to the industry,” he said.
Industrious’s model contrasts WeWork’s usual method of leasing space from landlords to keep the upside if things go well, though WeWork has recently begun pursuing more management contracts, too.