In October, WeWork, which caused a great deal of pain for Softbank, a significant financial loss, was brought to the attention of the coworking industry.
After investing more than $10 billion to take over WeWork, the originator of coworking spaces in the US, and forcing WeWork’s founder Adam Neuman to give up control through share buybacks, Softbank spent more than $15 billion in total, to buy an 80% stake in a company with a valuation of only $8 billion.
WeWork’s losses were jaw-dropping!
If Taobao has changed people’s shopping and traveling habits, then coworking spaces as an innovative, flexible, resource-efficient office method have really changed people’s office working habits in recent years.
What happened to the coworking space?
China is undergoing an amazing urbanization process in recent years. According to official statistics, by 2025, the percentage of China’s population living in urban areas will reach 70%. At this rate, more than 200 cities with populations of greater than 1 million will be added by 2030. The development of science and technology has spawned various emerging industries.
The decors are varied, the lifestyle is popular, beer and other beverages are enjoyed, and entertainment facilities are supported. This is a style advocated by many coworking spaces – A nice working space for a good life.
However, looking at its development in recent years, the valuation of the sharing economy can be misleading. Companies are expanding wildly, racing to get investors’ money as fast as possible, and then immediately opening branches. It is reported that for one coworking giant between 2017 and 2018, monthly expansion was between 14,000 square feet and 28,000 square feet.
In order to grab their target properties, they usually offer higher annual rents or longer-term contracts, which are favored by property owners. Admittedly, this approach can have success, but it can also be very risky. Thinking of yourself as a space solution and product has essentially become the real estate model of these coworking spaces.
At the end of the day, coworking spaces should contribute to your business goals.
The essence of the coworking space is to work efficiently and create value. If we can create value instead of an unviable “bubble”, we can achieve sustainable development.The coworking concept advocated by theDesk is called “Co-work 2.0”. It takes away all the flowery elements. An office that offers a quiet environment with privacy, a productive space where the importance of people, connections between people, inspiration and cooperation are emphasized.We emphasize innovation and pragmatism. If you need services in multiple languages, we have staff from various cultures and backgrounds. We are proficient in English, Mandarin, Shanghainese, Cantonese, Japanese, Korean, and Dutch, the operations team will ensure you a perfect and uniquely efficient office experience at theDesk.
Our member community is rich and diverse, we also advocate offline communication in the community to make it easier to build trust. We actively help our members and neighbors to learn from each other’s knowledge, innovation, and influence to improve their businesses.
The coworking space is not only a physical space, a location, some facilities, but also a place where the goal of improving business value can be achieved by an exchange of the whole community.
Become one of our professional members and immediately enjoy our diverse office space options to create more possibilities.
For more information on co-working spaces, flexible options, pricing guide, etc. please call the hotline at 021-5200-4350 for immediate assistance and to discover more possibilities for your business.