Continuing on the fast-track to world domination, disruption-masters WeWork announced a new suite of services aimed at mid-sized tenants at a press briefing early this month, the Observer reports. The new offering is called “HQ by WeWork,” and with it, the co-working company is hoping for more of the growing share of the corporate market that is comprised of businesses with 11-250 employees. The Flatiron-based company is offering in-house brokerage services, leasing and office management, initially in New York City with plans to expand HQ to big-ticket markets across the country and internationally by the end of this year.
Six leases have already been signed with midsize tenants who would occupy a full floor of 5,000 to 6,000 square feet; the company is negotiating 400,000 square feet worth of leases throughout Manhattan.
What kind of companies sign on to HQ? The first tenant was Troops, a startup software firm that integrates sales and customer data into Slack chats. Dan Reich, the company’s CEO, said “We couldn’t get the privacy of our own space [in a WeWork], so we started having that conversation about this new offering.” When the Troops troops arrived at their new Flatiron HQ in April, “it was turnkey—everything from Voice Over IP, the TV, even little things like Bose speakers so we can play music throughout the day. If it weren’t for WeWork doing it, I would have had to find someone to do it, and then I become an office manager, which is the opposite of how I want to spend my time.”
How does it work? WeWork uses its in-house brokers to find a suitable space, then leases the space from the landlord and builds out an office in the sleek-yet-cozy warm wood, glass-walled style people have come to associate with modern co-working spaces. Tenants can then choose minor customization options, like a range of wall colors and custom layouts; they can opt to pay more for additional customization.
WeWork handles almost everything including installation of Wi-Fi and other IT infrastructure and heat and air-conditioning, cleaning the office and watering the plants. As it turns out, HQ offices may be 15 to 20 percent cheaper than a traditional WeWork coworking arrangement if tenants choose to forgo the usual WeWork amenities–but HQ tenants may still use those amenities at nearby WeWork locations.
Images courtesy of WeWork