Co-working aggregator, WeWork, is still on it's global take over of the the office real estate industry, is gaining some not-so-positive attention from other big names in the industry, though that doesn't seem to perturb WeWork in the least.
The co-working industry leader has launched an investment fund called ARK focused on acquiring properties, Bloomberg reports, citing anonymous sources. ARK has not been publicly announced, but WeWork has been ramping up its involvement in property ownership.
In 2017, the company partnered with Rhône Capital to raise $400M in funds to buy properties, the first being the flagship Lord & Taylor building on Manhattan's Fifth Avenue. That building is slated to become WeWork's headquarters next year (if it can finance the transaction). It has since bought properties as a part of partnerships in London and Washington, D.C.
WeWork has also entered into the development arena by partnering with Rudin Management and Boston Properties on the Dock72 project in the Brooklyn Navy Yard. It has also launched a venture called WeWork Space Services to assist startup members in finding space once they have outgrown co-working — long considered the province of brokers. The company's HQ by WeWork division occupies similar territory to both design and manage properties. Add them all up, and there are few areas of office real estate that WeWork doesn't touch.
“Don’t kid yourself, these are disrupters, they are seeking to disrupt the relationship of the landlord to the tenant. They are seeking to disrupt the relationship of the landlord to the broker,” Empire State Realty Trust CEO Tony Malkin said at Bisnow’s New York State of the Market event in late November.
Read more here
Join us in Bangkok the 19th to the 22nd of March for the Property Portal Watch Conference.