It looks like the office empire that WeWork has become is about to get even bigger.
The shared-office-space company, which is privately held, recently released its quarterly results, and its growth seems substantial. Revenue reportedly more than doubled during its second quarter year over year, hitting $421.6 million, while memberships hit 268,000, up from 128,000 during the same year-ago period. During the quarter WeWork apparently also received a capital infusion from Japan-based SoftBank, which invested $1 billion in the firm. It is also reportedly poised to become New York City’s largest occupier of office space, only second now to JPMorgan. It is already first in London.
On top of that, Bisnow reported that WeWork is entering a new arena – leasing to more mid-sized companies between the individuals and small companies it now houses and large corporations, such as General Motors and Samsung.
HQ by WeWork is reportedly leasing to companies that employ between 11 and 250 workers and want their own private space that isn’t shared with other businesses. Instead of its typical month-to-month leases it normally offers to companies and individuals, these tenants would be required to sign two-year agreements for their own spaces.
The program already has six spaces in Manhattan, and HQ by WeWork is primed to head to London, San Francisco and Toronto next, Bisnow reports.
This follows several ancillary initiatives put in place by WeWork. The company has launched apartment buildings in New York City and Washington, D.C. It is also involved in retail plans and is also getting into operating gyms and hosting schools in its properties. In addition, WeWork bought the former historic Lord & Taylor department store in Manhattan for $850 million last year to serve as its headquarters.
It seems as though the firm has a growth path similar to that of Amazon, with its involvement in so many projects. So, what’s next? There is talk of a WeWork IPO on the horizon, and the company reportedly has a valuation of $20 billion. It’s doubtful this will not happen with its recently released financial results going public for the first time, and the growth momentum WeWork has as a major commercial real estate office player.
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