Inflation and hybrid work ‘skyrocketed’ demand for flexible workspace, WeWork says

Inflation and hybrid work 'skyrocketed' demand for flexible workspace, WeWork says

Global inflationary pressures are pushing corporations to be “extra nimble” with their company actual property portfolios, in response to WeWork.

“That … has put the necessity for corporations to take a look at flexibility in managing and serious about their workspace,” stated Samit Chopra, the coworking firm’s worldwide president and COO.

“Which is after all, guided by a revolution in the complete work tradition and the hybrid work phenomenon that has taken place over the previous few months.”

Talking to CNBC’s “Street Signs Asia” on Tuesday, Chopra stated that as companies try to bring at-home employees back into the workspace, they’re targeted on constructing engagement and a “collaborative tradition.”

“That has due to this fact resulted in lots of corporations, massive and small, enterprise shoppers, freelancers, start-ups … to take a look at the versatile house sector and firms equivalent to WeWork far more favorably than we noticed within the final, say, three years in the past,” he added.

“What that has performed … is it has skyrocketed the demand for versatile workspace for us internationally.

More employees want flexible working arrangements, says WeWork

Final month, WeWork reported revenue growth of 37% from a yr in the past to $815 million for its second quarter. Its quarterly web loss additionally shrank 31% from a yr in the past to $635 million.

The enterprise section, made up of enormous Fortune 500 and 100 corporations, characterize an enormous portion of WeWork’s world enterprise, stated Chopra.

“Final yr, the enterprise section represented greater than 45% of our world enterprise. That a part of our enterprise has grown considerably during the last 2½, 3 years.”

Singapore ‘a serious market’

On Tuesday, WeWork launched its Asia flagship asset in Singapore – leasing a 21-story prime workplace constructing.

Chopra stated this underscores WeWork’s perception in Singapore as “a longtime world financial hub.”

Its location can also be well-positioned to draw massive enterprise shoppers, small companies and freelancers, he added.

“Singapore is … a serious marketplace for us within the Asia area and Asia as a area is an enormous a part of our world enterprise.”

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