WeWork targets profitability with its new flagship outlet in S’pore, and wants to house MNCs

Most of us probably know about the WeWork saga that happened in 2019 and 2020 — how the company was raising massive amounts of capital, and yet was making unbelievable losses on its locations. 

But now, WeWork is back and apparently, in better shape than ever. Last month, the company launched its first and only flagship location in Singapore at 21 Collyer Quay.

With 21 floors of office space situated a five-minute walk from Raffles Place MRT station, the new location is quite the spectacle.

So what does WeWork hope to achieve from this new opening, and what are its plans for Singapore?

A sneak peek of the new outlet

With many co-working companies and spaces popping up in Singapore, WeWork was determined to make its mark with the Collyer Quay flagship outlet. 

What was formerly a corporate building occupied by HSBC, WeWork has transformed the building according to four ideas: entertainment, enterprise, engagement, and wellness. 

Amenities for members — both individual and enterprise — are scattered throughout the building. The first floor has a cafe, and the third floor houses a yoga studio, showers, and private fitness room.

There are also fitness classes offered by Just Jym, in a partnership with WeWork.

To better cater to enterprises that lease space from WeWork, different areas can be segmented or combined to accommodate for different events and companies.

Larger companies may lease entire floors and adjust the proportion of workstations, communal areas, and meeting rooms to suit their needs, while smaller companies can make use of the many rooms available.

As for individuals, there are communal tables for co-working, and for those who need to take calls or prefer to work in a more private setting, booths are also available within the building.

The building even has auditoriums, to allow for business presentations and meetings.

The top floor features a lounge and networking area, with an in-house barista for anyone needing their morning pick-me-up, and beer taps offering free kombucha, beer, and flavoured sparkling water.

What’s new with WeWork?

As part of the company’s efforts to reach profitability by the end of this year, the company has opened a new flagship location in Singapore. This new flagship location will target mostly enterprises, and is WeWork’s 14th space in Singapore.

According to Balder Tol, General Manager for WeWork in Australia and Southeast Asia, the new location was designed with the intention of having 80 per cent of the building to be occupied by enterprise companies — think Fortune 500 companies and other global companies. 

To that end, around 17 of the 21 floors of the building are dedicated to private offices to be leased to such enterprises.

Balder is confident that WeWork offers such enterprises far more than just another place to work.

Flexibility has been a strong concern for businesses ever since the pandemic hit, and we don’t see people wanting to go for leases that are seven years or ten years long- nobody knows what is going to happen tomorrow or next month, and the ability to scale back or expand operations is going to be key.

One way that WeWork is seeing its clients use their office spaces is the creation of satellite offices. While some companies might have an office that they own, which functions as the company’s headquarters, these companies also engage WeWork to set up offices for individual business units. 

Balder also expressed that WeWork offers businesses much more than just office space. 

“Because we have such a diverse business community at WeWork, these community members become resources for other members as well,” he added. Balder recalled that at WeWork’s Suntec outlet, one of their clients actually tapped the other members to test an app that they were developing.

Plans for the future

While WeWork is not currently planning to open any new outlets, Balder is confident in Singapore’s criticality for the company’s plans to become profitable in the near future. 

Due to the fact that many companies operate in Singapore before expanding throughout the region, Singapore functions as a launchpad for many companies, and WeWork hopes to tap on this demand for office space in Singapore and Southeast Asia.

According to WeWork, occupancy is at 90 per cent across the 14 outlets that they have.

Ever since the ouster of founder and former CEO Adam Neumann several years ago, the company has apparently made operational efficiency one of their top priorities, and thus far, Balder is confident about the Asia Pacific market.

Despite the many competitors that WeWork faces, Balder suggests that WeWork is positioned to grow as the prime co-working space provider in Singapore. 

Giving credit where credit is due, Neumann came up with the idea of building a company that provides co-working spaces, and I believe that the fact that so many competitors are coming into the space as well is testament to the fact that he had a good idea. 

But WeWork, as the only company that offers plans for everyone and anyone, is uniquely suited to the demands of the APAC region. 

For now, however, WeWork’s main focus in Singapore will be to complete the opening of its flagship 21 Collyer Quay outlet. While individuals are already filling the bottom few floors, several of the enterprise levels are still being adjusted to accommodate requests from tenants. 

While it remains to be seen whether WeWork can make good on its promise to become profitable by the end of the year, the opening of the new Collyer Quay flagship outlet by WeWork is certainly testament to the company’s longevity. Having survived its ill-fated IPO and the ouster of its charismatic founder, the company is now fighting back to save itself.

Featured Image Credit: WeWork