Coworking Post-Covid: WeWork’s Predictions for 2022

How has WeWork been affected by Covid-19?

WeWork, like the rest of the coworking industry, was hit hard by the early-stages of the coronavirus pandemic. Demand for communal working suddenly dropped as the public was told to stay at home and avoid social interactions.

As outlined in our full review of the coworking company, WeWork was still wounded from various other PR crises in early 2020 – including saying goodbye to its former CEO and controversial founder, Adam Neumann. Covid-19 sent the company’s growth plans into further chaos.

Like a lot of large-scale coworking providers, the national lockdown meant that the majority of WeWork’s office spaces went unused. Rent payments from WeWork to its landlords, as well as from its customers, slowed.

Some of the firm’s members (what WeWork calls its tenants) asked for rent breaks and were given short-term deferrals – but the company itself was losing money.

In a 2020 interview with CNBC, WeWork’s chief executive, Sandeep Mathrani, said the company had paid rent at 80% of locations in April and May but was still in discussions with landlords regarding the remaining amount owed.

The firm continued to collect 70% of rent payments from its members during the same period – including small businesses that were struggling from the economic downturn themselves.

But then, as suddenly as the demand for office space had dived, it rose again. Restrictions were lifted, and hundreds of small business owners that had previously been working from home suddenly found themselves in need of a premises.

Mathieu Proust, General Manager at WeWork UK Ireland and Emerging Markets

In fact, Instant Offices reported that in late 2020 – despite the impact of the pandemic – the UK’s flexible office space provision still grew by 4%.

Mathieu told us that, like all businesses, WeWork has navigated challenges during the course of the pandemic. The company has since strived to adapt its spaces and support members.

“People have been exposed to new ways of working, prompting companies of all sizes and sectors to completely rethink their workplace needs. People now want more choice in how, when and where they work and we can meet this demand due to our scale and offer.”

It seems to have worked. In January 2021, WeWork announced strong December sales results. Preliminary figures reveal that 66,000 desk spaces were sold in the final month of the year – that’s an increase of 11,000 compared to the previous month. Overall global memberships increased by 2.25% month-over-month.

The firm also celebrated becoming a publicly traded company in October 2021, via a merger with the special-purpose acquisition company BowX Acquisition.

There are still concerns about what further lockdowns or extensive restrictions could do to the WeWork business model – although the UK government’s recent announcement of the end of Plan-B coronavirus restrictions could help small businesses to feel more confident about purchasing office space.

So, how will WeWork support its members in the face of another potential lockdown?

Amongst the deals WeWork has in place to assist small businesses and those in early-stage growth, members can receive a discount on the first three months of their membership so you can test out your office before purchasing a longer-term contract.

The company also recently announced two new workplace solutions which give small businesses more flexibility.

“SMEs and startups have led the charge back to the office,” said Mathieu “[and] we will continue to support these members as they navigate their evolving workplace plans.”

These are:

• WeWork All Access, a monthly membership which gives members the ability to work from over 60 buildings in the UK, and access to any of WeWork’s global locations. 

Price: £199 plus VAT for the first three months, per member, per month. After four months, this amount rises to £299 per member, per month (subject to commitment terms).

• WeWork On Demand, a pay-as-you-go solution where users can book workspace and meeting rooms by the hour.

Price: Access to shared workspaces starts at £45 a day, while meeting rooms are bookable for £15 per person, per hour.

“By digitising our real estate, we [can] bring solutions directly to the individual or company – with no long-term commitments, red-tape or unnecessary complexity”, explains Mathieu.

WeWork’s largest UK office, 10 York Road

How have coworking spaces adapted post-Covid?

Health and safety

Months of being told to wash our hands, stand two metres away from other people and wear face masks have thrown up some concerns amongst potential flexible office users.

Shared spaces and surfaces could potentially be a hotbed for the virus – so how are providers adapting their offices for safe use?

Mathieu told us that WeWork has invested significantly in health and safety measures, including enhanced air quality, more frequent cleaning schedules, and behavioural signage in communal spaces: “Health and safety is front and centre in any workplace plan, and as companies continue to prioritise this into the new year – it is important our members feel comfortable about coming to work.

“We’ve worked in partnership with world-leading health services and have been awarded a Global Certificate of Conformity by Bureau Veritas — an internationally recognised testing, inspection, and certification organisation.”

WeWork No.1 Poultry

Another coworking provider that’s striving to support tenant safety post-Covid is three time Startups 100-featured, Headspace Group.

On their website, Headspace said their aim is to keep Britain’s small businesses operational during the current turmoil of the pandemic: “Our cleaners are sanitising our spaces with intensive deep cleans. A fogging service sterilises the environment for 30 days and we display cleaning schedules. We focus on key touch-points, such as door handles, toilets, coffee machines and kitchen facilities, while lift-buttons have easy-wipe plastic coverings.”

Digital solutions

Technology has been a crucial component throughout the pandemic in helping to keep people connected. As the ‘coworking’ aspect of its business model became threatened, WeWork has also invested in several technology solutions to ensure SMEs can continue to network safely within its offices.

Outlining the new software that’s available to members, Mathieu told us the firm had also recently partnered with ARHT Media “to bring its holographic conferencing technology to WeWork locations around the world [and] bridge the need for expensive business travel while fully immersing remote participants in meetings.”

According to industry reports, this technology is currently only available in WeWork’s New York, Miami and Los Angeles offices. The company plans to roll holographic conferencing out to 16 select WeWork locations in the near future, but it’s unclear if any of these will be in the UK.

Commuter-friendly

At the moment, WeWork’s offices are still based in city centres – tricky for the large number of workers that moved into UK rural belts when Covid struck.

Spacemade, which featured as one of our top 50 Startups last year, is capitalising on the increasingly common hybrid work approach, by offering work spaces that bring individuality to their branding – in contrast to larger, multi-national shared offices.

Founded by Jonny Rosenblatt and Dan Silverman in 2019, the real estate company helps to develop buildings in suburban areas, termed ‘neighbourhood spaces’, as well as city centres. Owners can then provide more floor space to tenants at lower cost.

This innovative approach has met success. Spacemade has delivered four boutique coworking offices to building owners in just two years, and plans to open two more in early 2022.

Should you choose a coworking premises in 2022?

There are many perks to choosing a coworking workspace over traditional office rentals. Tenants can save on daily costs by accessing tonnes of business amenities including office equipment, WiFi, meeting rooms – and plentiful tea, coffee and biscuits.

It’s important to carry out research into the perks and incentives that are offered by different providers, so you can be sure it’s the right fit for your company.

WeWork rival Regus, for example, charges just £80 for membership to its global business lounge network, providing budget-conscious SMEs with a more accessible package. Meanwhile, more localised providers such as The Transfer in Birmingham, gives reduced rates to tenants based nearby, and those who commute using sustainable methods.

Here are some wider benefits that coworking memberships give scaling businesses over traditional offices.

Added flexibility

Coworking offices are particularly beneficial for small businesses in the new, post-Covid working world. WFH policies have given both business owners and employees a desire for more equal work-life balance, and greater control over when and how we work.

WeWork’s newest London location, The Hewett