The Powers that WE: WeWork and the Future of Co-Working in Washington, DC
WeWork seems to be a constant fixture in real estate news cycles, and tenants should be paying attention. Between leadership shakeups, a multi-billion-dollar takeover and an on-again, off-again IPO seemingly hanging in the balance, the next year will be critical for the company and it’s standing in the Washington, D.C. commercial real estate market. While these developments are newsworthy, it’s clear that WeWork has a business strategy for rapid growth in the D.C. market that seems certain to position the company not only against existing landlords, but also an oversaturated market, all of which creates competition that should provide tenants with a window of opportunity to take advantage. WeWork’s expansion in the D.C. market has been sudden and rapid, but it’s worth noting that when compared to other major metropolitan markets, the D.C. WeWork footprint is still relatively small. For instance, of the 200+ locations that WeWork has opened or plans to open, Washington, D.C., accounts for just 16 of those. It remains to be seen whether WeWork’s leasing activity will slow down or whether they will continue to expand, especially given the leadership shakeups.