It’s been all over the media and especially Twitter.
Ok #PropTech #CREtech Twitterverse, what’s your first hot take on this? @dukelong @kenashley @MetaPropNYC @CBRE @drorpoleg @antonyslumbers @CoyDavidsonCRE @Bradley_Greiwe @NickRomito https://t.co/bSy0vSZKGD
— Elie Finegold (@ElieFinegold) July 24, 2018
Let’s jump back to 2015 when I wrote What Is The New Future Commercial Real Estate Brokerage Model? Hint: It Does Not Include A Broker. Contained within that article was this paragraph, “WeWork has a “Platform for Creators.” A platform that directly faces the user….wait I mean tenant. They directly provide that user a dizzying array of services that the user can choose from. They allow that user to pay them directly ( the more I write about this the more pissed I get that I/me did not come up with this idea and I am “the cre tech shit” how?) and know exactly when where and how they are using “space” commercial real estate space. They have a relationship with that user. A relationship you do not have and may not ever have a chance to develop.”
It was not that hard to imagine they would not further that type of relationship and turn it into an enterprise relationship with the likes of Amazon and IBM. In 2017, WeWork Revealed Its Grand Plan: World Domination. Source – Bisnow
And how about this little gem The Symbiotic Relationship Between WeWork, Brokers, and Enterprise By Julia Davis. Posted on this very site in October of last year.
Pushing it just a bit further I wrote The WeWork Pitch Deck Or How To Simply Raise A Few Billion Dollars! In April of this year.
They have not been hiding, have they? They have raised what, how many billions. They are one of the if not the top “tenants” of space in how many cities. London I know for sure. London, England not some little suburb in New Jersey. They are a dominant force in New York also and the list of cities globally goes on and on.
Here is a question, what took them so long? Hell, I saw this coming in 2015 you have to imagine they did too. Wait, I’m sure they did. The other question you have to ask is what’s left? Off the top of my head…nothing…yet.
Their valuation is what, anywhere from 3 to 40 BILLION DOLLARS. Now that is a big gap depending on how you look at it but for reference, Cushman Wakefield is working on an IPO and going for an $816 million raise and a $6 billion market cap.
Here is a big question for #CRE, what does Cushman Wakefield do? You know the answer, I know the answer.
Let the questions continue, what does WeWork do? What’s your answer? Rent desk space to dudes in skinny yellow pants, bad beards, and atrocious haircuts? Really?
That’s not my answer and anyone with A BRAIN knows that’s never been what they were about. If you still think that for fuck’s sake leave #CRE, you are a fucking idiot!
So WeWork has a platform of services and provides “space as a service” to how many people today?
CBRE, JLL, Cush Wake, Colliers have platforms that provide “space as a……….wait a minute, NO, they don’t.
They are trying to figure out a way…
They might have a better broker network….until WeWork poaches them away.
They might have better property management….
They have better “legacy” relationships and can leverage…
Ok, I will stop I’m sure you get the point.
I have said this I don’t know how many times to how many people but “who has created the best business and brokerage model in the last 20-30 years? WeWork and it’s not even close.”
So, WeWork Is Going Into Brokerage…I Told You So…But…?
Wait until they partner up with Amazon and start providing additional services.
Yea reread that.
How will that work?
Really I have to spell it out again.
Nah too easy, if you can’t figure that out that’s why WeWork built one of if not the best brokerage…maybe ever..maybe.
+1. A bonus thought just to melt your brain… Amazon has private label products. What stops WeWork from doing the same? Nothing!