Cushman & Wakefield Makes Strategic Investment of $150 Million in WeWork
Investment follows creation of exclusive strategic partnership to create new offerings for real estate owners and occupiers
The two companies recently announced an exclusive strategic partnership intended to provide clients with best-in-class office operations by combining WeWork’s proprietary hospitality and technology-enabled services with Cushman & Wakefield’s industry leading asset and facilities management services. In the time since that announcement, the firms have reported a positive reception from major institutional real estate owners and Fortune 500 occupiers, leading to early pilot program opportunities.
The partnership will also help grow WeWork’s new landlord and tenant-focused offerings through two initiatives. The first initiative will focus on helping building owners and corporate occupiers improve the daily user experience through use of WeWork’s proprietary software that will integrate traditional building features like access control and reservation systems with onsite hospitality and amenity programming. The same technology will also provide access to critical asset usage data, guiding capital investments to support leasing, tenant or employee retention, operational efficiency, ESG/energy goals and, ultimately, return on investment.
The second initiative will allow owners to create new revenue streams by operating flexible workspace centers within their portfolio. Over time, as those tenants grow out of the flex space, Cushman & Wakefield’s leasing and project management teams will be able to convert tenants into more traditional office space, within the same building.
Corporate occupiers have also been very focused on managing the employee experience as workers return to the office. While
“WeWork is recognized as an innovator in our industry because they have demonstrated their ability to build a tenant experience that people are drawn to, and they’ve been a pioneer in using technology to efficiently manage that experience and the office space around it,” said
“More than ever, property owners are looking for a competitive advantage to drive tenant demand for their offices. Meanwhile, today’s office worker has elevated expectations for a workplace experience that is convenient and customizable, while allowing them to build community with other workers. Even in the early days of this partnership, we’re seeing many opportunities to scale the ‘WeWork experience’ much like we scale our traditional building management services,” said
Cautionary Note Regarding Forward-Looking Statements
This release may contain forward-looking statements that reflect the Company’s current views with respect to, among other things, future events, results and financial performance, which are intended to be covered by the safe harbor provisions for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts, and you can often identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “target,” “projects,” “forecasts,” “shall,” “contemplates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this release are based upon the Company’s historical performance and on its current plans, estimates and expectations in light of information currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by us, that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions that could cause actual results to differ materially from those anticipated, including, but not limited to, the effects of the strategic investment on the Company’s operations, financial results, financial condition, business, prospects, growth strategy and liquidity. Additional factors that could cause results to differ materially from those described above can be found in the Company’s Annual Report on Form 10-K and subsequent filings with the