Far from slowing down after losing over $900 million in the first half of the year, WeWork's ambitions were only growing in the third quarter.
CBRE isn't predicting what will happen to any existing WeWork locations, but the firm is dramatically reducing its forecast for total market growth now that it expects "very minimal" increased activity from the biggest leaser, Whelan said.
The coworking space market has been growing about 26% a year since 2010, and CBRE was expecting that number to reach 36% this year. The firm now is projecting growth of 23% for 2019, falling next year to between 10% and 15%, Whelan said.According to CBRE's data, some of the much smaller players have been growing more rapidly than WeWork on a percentage basis, with Venture X expanding 435% in the past year, followed by Office Evolution at 321%, Bond Collective at 211% and Knotel at 153%.
"Some flex space operators are going to be a little more opportunistic and lease a little more on top of what they were doing," Whelan said. She said that the structure of leases is likely to change amid the WeWork fallout. Up to this point, owners have typically leased the property to coworking operators and handed over complete control of the space. Going forward, property owners are more likely to partner with the leaser, to get more transparency into the clientele and to participate in the underlying economics.
"Landlords are going to share in the reward scenario and the risk scenario," Whelan said. They'll be able to "adjust accordingly" as conditions change, she said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Libby’s Just Changed Their Pumpkin Pie Recipe for the First Time in 69 YearsLibby's just changed their pumpkin pie recipe for the first time in 69 years.
Read more »
How SoftBank says it’ll fix WeWork and turn it profitableSoftBank founder Masayoshi Son said turning around WeWork would be “simple.”
Read more »
SoftBank's latest valuation of WeWork is lower than previously thought — at under $5 billionThe managers of SoftBank's $100 billion Vision Fund slashed their pre-bailout valuation of WeWork by 83% in the space of three months.
Read more »
SoftBank Founder Calls His Judgment ‘Really Bad’ After $4.7 Billion WeWork Hit“I regret it in many ways,” Chief Executive Masayoshi Son said of the investment, after SoftBank marked down the total value of WeWork’s equity to $7.8 billion.
Read more »
Factbox: How to fix WeWork: rivals say what they would doOffice sharing company WeWork is being rescued by its largest shareholder, SoftB...
Read more »