WeWork looks to regions as MD plans expansion

It now has 14 buildings in London, which will rise to 20 by the end of the year, with ambitious plans to grow further. Its Leeds-based UK managing director Joe Gaunt is looking to the regions for the next move.

He remains tight-lipped about possible locations but said at least one regional office would be open by the end of the year and WeWork would be in ‘multiple’ cities by the end of 2018.

He added: “We very much expect we will come to the North. We anticipate WeWork will be in every major city in the world over time.”

WeWork, which is valued at more than $17bn (£13bn), leases buildings and fits them out with lots of social spaces, including coffee shops, meeting spaces, and even yoga studios. It then rents out desk and office space to ambitious freelancers and startups.

Speaking to The Yorkshire Post, Mr Gaunt said WeWork focuses on community and collaboration. He believes the business model will flourish throughout the UK.

“We definitely see huge opportunities,” he said. “We think there’s a great network effect of having multiple (WeWork) buildings in a city.”

The business has a global community of over 100,000 members in 15 countries and 2,400 staff internationally.

According to its latest accounts filed at Companies House, WeWork posted a turnover of £11.9m but made a net loss of £14.4m for its first 14 months in the UK between October 2014 and the end of 2015, which it puts down to a period of aggressive growth and expansion during its launch period.

Locations which have been open for over 18 months are at least 90 per cent full. Mr Gaunt, who joined the company six months ago and commutes to the capital from Leeds, said the company’s popularity is due to the communities it creates. “It’s a mission-led business that focuses on creating a global network of people,” he said.

From wellbeing events to ‘lunch and learn’ sessions, free coffee and beer on tap, each building is carefully designed to bring people together. There’s also the WeWork app to connect members.

While the initial idea was to offer all its space to start-ups and freelancers, around 30 per cent of space in London is now taken up by corporates, including Microsoft and Facebook, which provides greater stability for WeWork as these tenants tend to stay for longer. Mr Gaunt added: “We make sure we have an even mix of people and everybody benefits from that.”

Entrepreneurial challenge

WeWork is offering Yorkshire entrepreneurs the chance to win up to £360,000 worth of investment as part of a £16m global funding pot to help small businesses.

The workspace provider launched its Creator Awards programme in the UK, offering prizes totalling £1.2m to start-ups across the country.

All applicants will receive desk space in its facilities for two days per month for a year, while finalists will be invited to London for a pitch event in September.

Those who are successful will join the global finals in New York.

Joe Gaunt, UK managing director said: “It’s really exciting for me as a proud Yorkshireman that these awards are also open to businesses in Yorkshire.”

For details, visit: creatorawards.wework.com