WeWork deserves “credit for recognising the desire for flexible space” but future co-working spaces could see a 30% mark-up if the flexible workspace giant unravels.
Scott Rechler, chairman and chief executive of New York-based developer RXR Realty, told delegates at MIPIM Proptech New York, held in partnership with MetaProp, that the flexible workspace model would face fresh challenges as WeWork “unfolds”.
He said: “Wherever WeWork lands, it has really led the way with this new way of work and that will live on. But the challenge is that the current model of co-working is great for the user as so many offerings are subsided by VC. Going forward, it might need to be priced by real estate companies looking to make a reasonable profit. This could be up to 30% more than what lots of companies were paying before. Is that a price they are willing to pay?”
