Co-working office space provider WeWork announced this week that it will be expanding with a broader real estate facilities management service. WeWork decided to test an enterprise option after noticing that several companies had booked entire floors in its existing locations, effectively carving out their own offices.
WeWork first provided the new "on-site services" for an unnamed corporate client in Chicago that has decided to reduce its leased space from three floors to just two, said David Fano, the New York-based company's chief product officer. Fano said the new enterprise was "still not fully integrated, still not real estate services in a box." These services have not yet been introduced to the UK market.
WeWork, which has been the largest leaser of new U.S. office space for the past three years, said it could reduce both costs and time to build an office. The company suggests using an in-house design team that will optimize space and create a floor plan that improves employee interaction. Quartz described the company as always being deeply involved in the design and management of its office buildings. “The offices have a purposeful Silicon Valley vibe, with glass walls, wood-paneled floors, and industrial accents.”
“What we’re seeing is that large companies want to be small,” mentioned Fano. “What they really want is that space as a service. Community managers, fruit water, coffee—they get the full experience.”
"We've got certain beliefs, philosophies of what it takes to make a highly energized work environment," Fano explained to reporters at a U.S. news conference, "and often times that means reducing your footprint, getting people to work a little more closely."
According to Reuters, WeWork has become a “multibillion-dollar real estate company by offering start-ups communal office for a monthly fee, allowing them to expand or reduce both headcount and number of desks easily.” Around 22% of its customers are now companies with more than 500 people, a client base WeWork is targeting for growth potential. WeWork currently operates in 135 locations spread across 44 cities in 14 countries.