WeWork Edges Into Tenant Broker Territory
WeWork will use consultants as its brokers for the new service.
NEW YORK CITY–On Friday WeWork announced it would be debuting a new service called Space Services as a pilot in New York City this September. Aimed specifically at small to medium-sized businesses, Space Services will help these companies find office space by “giving them access to inventory they would not otherwise have,” Dave Fano, chief growth officer, wrote in a blog post announcing the service. He called it a “a one-stop solution that caters to their real estate needs, both in the short and long term.”
Landlords will benefit as well, Fano also said, as WeWork will be bringing new tenants to them. He writes:
These potential tenants will already have been screened by our space services team and their needs identified, ensuring that landlords are being introduced to tenants who are ready to move in and the right fit for their respective buildings.
For the New York pilot, WeWork has tapped Jason Bauer, who launched a boutique real estate firm in 2013 that has conducted over $500 million in real estate transactions, as its head.
As the service offering grows, this will be WeWork’s model for its brokers, according to publications — namely the use of consultants. According to the Commercial Observer, they be commission-based with a 50-50 split, but will make more “if they source their own leads,” Fano told the publication. WeWork already works with outside tenant brokers, giving them a commission for clients they bring in, so it is unclear how this new service will affect them competitively.