During the slow months of late summer and early fall, WeWork advertised it’s ability to take customers from other co-working companies. Employees would cold-call competitors’ tenants, set up games and couches outside of other co-working office spaces, and offered up to a year’s worth of free rent if they came over to WeWork.
This year, WeWork is enlisting another party in the battle: brokers. The company is offering commercial real estate brokers worldwide a 100 percent commission on the first year of rent paid by any tenant who switches to WeWork from a top competitor and signs a lease by Oct. 1. Tenants also get half off the first year’s rent if they sign for at least 12 months. That means, accounting for the discount, that WeWork’s current bonus to brokers is five times the standard commission it typically offers of 10 percent on the first year’s rent.
Competitors say that generous bonus is behind a new wave of brokers cold-calling their tenants and trying to tempt them away, offering them half off a year’s rent if they switch to WeWork.
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