WeWork’s Looming IPO Will Also Prove Decisive for Slew of Rivals
According to Bloomberg,
WeWork Cos. took the real estate world by storm on its way to an initial public offering that’s set to be among the year’s biggest. It’s not the only co-working firm that’s primed for new heights.
WeWork’s IPO will serve as a benchmark for the valuation of the entire co-working sector, according to Danny Ismail, an analyst at Green Street Advisors. Public information on the profitability and sustainability of its business has been limited, so the limelight on WeWork’s financials is likely to reflect on its rivals as well, he said.
“WeWork’s competitors need to continue raising capital to grow their business,” Ismail said, “and depending on how WeWork is received by the public market, it could help or hurt their peers.”
In the past few years, IWG has invested heavily in its Spaces brand, which caters to millennial workers with trendier offerings like warm color palettes and coffee from local roasters. Well-established brokerages and landlords, including CBRE Group Inc. and Tishman Speyer, have launched their own flexible-office options. Startups that have sprung up to capture niche segments are attracting large institutional and private equity investors.
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