Once a private office stops meeting the needs of a company, the next step is what WeWork calls an office suite, aimed at teams of 20 to 250 people. The main difference from lower-level offerings is that, instead of sharing common spaces with other WeWork members, office suites have their own private reception, conference rooms, executive offices, telephone booths and pantries. However, WeWork continues to manage the space, and the WeWork staff is responsible for issues such as cleaning, maintenance, IT and utilities. WeWork is WeWork's “white label solution”, positioned above office suites, and is WeWork's white label solution for business customers.
Instead of setting up the company with a space within an existing WeWork, headquarters are established in separate locations provided by WeWork in the neighborhood of the customer's choice. Client companies choose one of four “configurable” designs, ranging from an open bullpen to executive suites. Customers of this service also choose to have internal staff manage the daily operations of their location, and WeWork assumes what the website calls a “behind-the-scenes role”. WeWork's business model is basically based on bullish sentiment, which prevails in the real estate market.
WeWork intends to make money by increasing sublease rates in the future, while continuing to pay the lower rents that were originally agreed. The WeWork model is basically a big bet in the real estate rental market. As long as rents continue to grow, WeWork will continue to make money. WeWork has gained space as an innovative way to rent workspaces, with flexible pricing and low.
It is also backed by some of the world's most famous and successful companies, such as Microsoft, IBM, Amazon, Airbnb and Samsung. It is currently seeking to expand in Eastern European countries. All of these acquisitions are aimed at turning WeWork into what Chief Product Officer Shiva Rajaraman has called “Google Analytics for Space”. While WeWork has shown interest in expanding to sectors other than the original co-working sector, the temporary rental of spaces is still its main line of business.
The company was slow to rebound after the recession that took 12 years after Regus went bankrupt again in 2000, despite having increased its office space 6 times during that time, according to the WSJ. In recent years, the company has stopped focusing on the traditional co-working market of freelancers and individual entrepreneurs and has focused on opportunities for greater use, such as working together for companies and a new “WeWork as a Service” offering called Powered by We. By combining scalable office space solutions with an expanding range of services and amenities, WeWork attracts a growing ecosystem of freelance clients, startups, small businesses, and businesses. WeWork also saw an opportunity to work with companies that offered their office space as a benefit through an all-access offer, as well as with universities that wanted to offer their students an alternative place to study.
With its emphasis on larger spaces and a more modern aesthetic, experts have speculated that Spaces may be the brand best positioned to challenge WeWork.
