{"id":2271,"date":"2019-09-06T11:14:35","date_gmt":"2019-09-06T15:14:35","guid":{"rendered":"https:\/\/deconstructed.wework.com\/?p=2271"},"modified":"2020-09-03T05:53:10","modified_gmt":"2020-09-03T09:53:10","slug":"heres-how-headquarters-by-wework-helps-build-agile-businesses","status":"publish","type":"post","link":"https:\/\/www.wework.com\/ideas\/workspace-solutions\/flexible-products\/heres-how-headquarters-by-wework-helps-build-agile-businesses","title":{"rendered":"How headquarters by WeWork helps build agile businesses"},"content":{"rendered":"\n<p>In an interview with <a href=\"https:\/\/www.curbed.com\/2019\/3\/26\/18280774\/wework-real-estate-office-space-coworking\">Curbed<\/a>, WeWork\u2019s chief growth officer, Dave Fano, asserts that \u201cin the long term, companies won\u2019t own and operate their own headquarters.\u201d A bold statement perhaps, but is Fano simply trend-spotting what CBRE terms \u201csolving for agility\u201d in corporate real estate? As midsize and larger companies <a rel=\"noreferrer noopener\" aria-label=\"turn to solutions (opens in a new tab)\" href=\"https:\/\/www.wework.com\/workspace\/private-office\/headquarters-by-wework\" target=\"_blank\">turn to solutions<\/a> like headquarters by WeWork for flexible, private office space, we look at what\u2019s driving the trend.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>In the long term, companies won\u2019t own and operate their own headquarters.<\/p><cite>Dave Fano, chief growth officer, WeWork<\/cite><\/blockquote>\n\n\n\n<h2  id=\"the-challenge-for-corporate-real-estate-seekers\"class=\"wp-block-heading\"><strong>The challenge for corporate real estate seekers<\/strong><\/h2>\n\n\n\n<p>Finding a new space for corporate offices can be time-consuming and expensive, and likely requires making a number of concessions around your company\u2019s ability to stay agile, including:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Length of lease terms (typically 10-year or three- to five-year agreements)<\/li><li>Lack of flexibility when your needs change (up- or downsizing)<\/li><li>Compromising on your desired location (accessibility or not to \u201chot\u201d markets)<\/li><li>Space design\u2014including build-out, branding, and space amenities<\/li><\/ul>\n\n\n\n\n\n<p><a href=\"https:\/\/www.austintenantadvisors.com\/blog\/typical-commercial-real-estate-lease-term-length\/\">Austin Tenant Advisors<\/a> puts it this way: \u201cDepending on the space and building you are interested in, your only option may be a three- to five-year lease or longer. If the space needs a lot of build-out and you are asking the landlord to pay for most of that, then expect to have to sign a longer-term lease. If the market is hot and there is a lot of interest in the space you want, then expect to sign a longer lease.\u201d<\/p>\n\n\n\n<h2  id=\"is-flexible-private-office-space-key-to-staying-competitive\"class=\"wp-block-heading\"><strong>Is flexible private office space key to staying competitive?<\/strong><\/h2>\n\n\n\n<p>The latest <a href=\"https:\/\/www.cbre.us\/research-and-reports\/Americas-Occupier-Survey-2018\">Americas Occupier Survey<\/a> from CBRE indicates flexible headquarters space is more indicative of the norm\u2014rather than merely a trend. The survey also reveals:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The majority of corporate real estate executives are looking for creative solutions and lease flexibility<\/li><li>81 percent perceive amenities as essential to a positive employee experience<\/li><li>52 percent are phasing in unassigned seating for maximum space efficiency<\/li><\/ul>\n\n\n\n<p>WeWork\u2019s Fano told <a href=\"https:\/\/techcrunch.com\/2018\/08\/08\/weworks-hq-product-aims-to-better-accommodate-mid-sized-companies\/\">TechCrunch<\/a>, \u201cTo better meet the needs of these companies, headquarters by WeWork offers private office floors (leased and managed by WeWork) that companies can move into for flexible leasing periods\u2014typically for a minimum of 12\u201324 months. But, should a company outgrow its space in six months, WeWork will work to accommodate a move to support its growth.\u201d<\/p>\n\n\n\n<h2  id=\"office-space-flexibility-also-equates-to-agile-team-building\"class=\"wp-block-heading\"><strong>Office space flexibility also equates to agile team building<\/strong><\/h2>\n\n\n\n<p>One of the surprising operational benefits of setting up corporate offices in flex space is the <a rel=\"noreferrer noopener\" aria-label=\"ability to hire and test out new teams (opens in a new tab)\" href=\"https:\/\/deconstructed.wework.com\/5-signs-your-business-should-switch-to-an-agile-real-estate-model\/\" target=\"_blank\">ability to hire and test out new teams<\/a>. Flex office space gives your company access to top talent pools in hot markets, and provides your team the opportunity to test their productivity in a way that has far less economic impact on all.&nbsp;<\/p>\n\n\n\n<p>Coworking Resources magazine describes the advantages this way, \u201cThe landscape of office real estate is changing dramatically, which is a modern trend aimed at enhancing the job satisfaction and productivity of millennial employees. Large corporations often hire small and agile teams and test new partnerships with a high degree of uncertainty, making 10-year leases with office buildings impractical. Big corporations are switching to shared workspaces for their easier logistics and more flexible terms.\u201d&nbsp;<\/p>\n\n\n\n<h2  id=\"headquarters-by-wework-is-not-just-for-startups\"class=\"wp-block-heading\"><strong>Headquarters by WeWork is not just for startups<\/strong><\/h2>\n\n\n\n<p>Many large, well-established corporations are embracing the concept of flexible office space that they can customize to their needs. Tech giant IBM has been an early adopter of headquarters by WeWork, with IBM leasing an <a href=\"https:\/\/www.forbes.com\/sites\/elyrazin\/2017\/05\/25\/what-ibms-deal-with-wework-says-about-the-changing-landscape-of-nyc-office-space\/#2ad2cfb96509\">entire WeWork building<\/a> in Greenwich Village, New York. Amazon in Boston and Airbnb in Berlin are also recent WeWork members, along with Sprint, whose Overland Park, Kansas, headquarters were recently redesigned.&nbsp;<\/p>\n\n\n\n<p>For these enterprises, flexible, private office space makes perfect sense. 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