Storm brewing: Co-working operators vs. real estate veterans
A storm is developing in the co-working office space sector, and the likes of WeWork Cos. and Regus may feel a brush of wind on their cheeks this year. Co-working operators typically do not own the office space they occupy but are receiving high rents in the current robust office market. Not only that, WeWork has amassed a $47 billion valuation in eight years. But now real estate veterans are adapting and using the same model for their own benefit, so co-space operators may need to put on a heavier jacket.
WeWork, founded in 2010, is the most recognizable co-working space chain in the world. WeWork controls 45 percent of the flexible office market in the United States, according to Colliers International, which identified more than 140 different co-working operators active in 19 markets, with a total of 27.2 million square feet of flexible workspace.
Corporate occupiers are set to become the driving force in the flexible workspace industry as the way they view their of