WeWork and Cushman & Wakefield have inked an exclusive partnership that will allow the global CRE firm to market both landlords and businesses on WeWork’s management experience platform, as well as on new jointly developed solutions.
In a joint statement announcing the partnership, the firms say the deal will “provide landlords and businesses with the ability to create a differentiated workplace experience for tenants and employees in the new hybrid world of work where flexibility remains at the forefront.” The companies are also in talks with BowX Acquisition Corp. about a potential deal in which Cushman would provide up to $150 million in a backstop equity facility.
“With flexible workspaces being an important component of the hybrid workplace, we’re excited to partner with WeWork to demonstrate how global occupiers and investors will benefit from the power of two global leaders providing unmatched accessibility to flexible offerings, best-in-class technology and a seamless tenant experience,” Cushman & Wakefield Executive Chairman & CEO Brett White said in a statement.
The deal is the latest in a string of such partnerships eking out market share in the flex work sector. In February, CBRE announce it had acquired a 35% stake in flexible workplace provider Industrious, a move that significantly increased its footprint in the flex workplace sector. Earlier this spring, Jamie Hodari, CEO of Industrious, told CBRE’s Spencer Levy that the company’s sales have been on a steady upward climb and hit three times their pre-COVID sales average in June.
“I have to think we’ve hit the ceiling,” Hodari said. “There’s no way we’re going to hit four or five times, but you never know. But yes, we are in the heart of a moment right now where there’s an extraordinary rush to use flex. It’s pretty widely distributed. There are some cities that are lagging, but it’s happening all across the country. They are definitely buying flex in volumes that exceed what you saw pre COVID.”