WeWork may still have to offer offers to get people to sign leases, especially when the economy is weakening. A recently opened location in downtown Atlanta had few members on two visits this week. And another WeWork, in Moscow, was half full. The main way to do this is to put a lot of people on its sites. Some WeWork members are the only reason the coworking giant keeps all its sites open is to be able to charge fees and avoid lawsuits. China`s national average of US$757 for a private office corresponds to major U.S. cities like Chicago or Los Angeles, but if you move away from Hong Kong – with an urban average of US$975 for a private office and US$455 for a hot desk — averages in places like Beijing and Shanghai drop dramatically to US$648 for a private office and US$341 for a hotk. Raney, Miller and Hayhurst all said they were not considering terminating their membership agreement with WeWork because he managed the pricing during that period. While the vast majority of WeWork membership plans assign their members to a site, members can change locations. Other co-working companies have more specific priorities. Neuehouse, for example, focuses on « solopreneurs » and teams of less than 10 people, particularly in the film, fashion and design sectors. The company has so far raised $71 million. IWG`s market capitalization of $2.9 billion is about one-tenth of WeWork`s private market valuation, although it has 3,000 sites compared to WeWork`s 550.
The spaces co-working sub-brand had 200 U.S. sites at the end of 2018 and expects to more than double that number in 2019. The company is also investing in additional commercial space in Denver. In November 2018, WeWork signed two new leases: one at the Circa Building in the city`s LoHi district and the other at Revolution 360, a five-storey office and retail building in RiNo. Both sites are about 60,000 square meters. In October 2017, WeWork announced the opening of its Rise by We spa and gymnasium. The property, which is currently only available on one site in New York, is open to WeWork members, with a fee for non-WeWork members starting at $100/month for access to four studio classes. WeWork intends to implement similar fitness/spa offerings on other sites.
The focus on the community is directed at many WeWork members. Entrepreneurs say that working on one of the company`s sites can offer the prospect of collaboration and meeting with new investors and clients. Swarts, the tenant of Dock 72, said WeWork has been a great help to his business. Through his participation in WeWork Labs, a service for startups, he received a $75,000 investment from the company`s venture capital. Including Dock 72, WeWork is expected to add approximately 10 million square meters of new offices this year to its crowded real estate portfolio in the US and UK. The sites, often built at a high cost, highlight the stabbing of executives trying to save the company, which this week received a last-minute lifeline from SoftBank after being forced to cancel an IPO. The company uses this data not only to improve its own sites, but also to become an outsourced Facility Manager, at a time when large companies are trying to oust real estate management from their portfolios. WeWork has already secured IBM and Verizon for its Powered by We offices in Dock 72, a high-level commercial property in Brooklyn.