Real estate magnates to challenge WeWork's continued rise
Since its inception, WeWork flipped the real estate model on its head, transforming traditional work culture in the process. As the change continued, real estate firms began to feel the ensuing pinch. Today, these firms are fighting back hard using one of WeWork’s key tools: technology.
Apps & Data Dominate
As is often a recurring theme, major real estate developers are turning to data solutions that can power new apps, taking a page from WeWork in the process. These apps are designed to enable tenants to make the most out of the premises they occupy, and landlords to optimise services. Broadly speaking, apps enable:
- Access to the building / guest registry
- Class booking (e.g: fitness)
- Food ordering / payments
- Work orders
Likewise, data collected by landlords provide insights on:
- User patterns
- Spikes and anomalies
- Areas of optimisation
Ultimately, this ecosystem benefits both parties and can enable higher retention rates for landlords in the long-term, securing cash flow over time.
Beyond data and numbers, real estate developers are using tools to foster a greater sense of community amongst tenants. In fact, they now seek more insights on cultural events that workers would be interested in. In changing their mindset to better accommodate their partners, landlords become community hub creators and enable greater discussions through their own platforms. As these firms speed up their internal changes, WeWork will likely seek to push further to solidify its advantage to counter their competitors’ improvements.
In our experience, this part is the most challenging. Indeed, community in a physical space is no different than running a magazine. You have to understand the demographic, how to speak to them, and how to challenge/solve their pain points. Many competitors entering the space are interested in the idea of building a community. However, their emergence from traditional real estate makes for a challenging transition.
What’s Next For WeWork?
Time will tell if WeWork will continue its dominance in the field. Perhaps the more interesting story is ultimately that real estate firms have learned to adapt much quicker than others when a disrupting firm entered their industries. Most noteworthy and in comparison, Kodak (which actually invented the digital camera) never moved fast enough and ended up losing grip on their industry altogether. Ultimately, this may have been a cautionary tale and a wake-up call for real estate magnates as a whole. Hopefully, this new breed of office space will provide more than just beer and timeboxing techniques.