In a recent This Week in Coworking podcast episode, “What exactly is this network that WeWork, Vast and Yardi are Building?”, Hector Kolonas of Syncaroo led an in-depth discussion about WeWork’s groundbreaking launch of a coworking partner network, which involves over 690 locations across the U.S. and Canada. The episode featured insights from tech and industry leaders including Jason Anderson, CEO of Vast Coworking, John Santora, CEO at WeWork, and Anant Yardi, CEO at Yardi. These experts delved into the changing dynamics of coworking spaces, the increasing role of technology and the need for collaboration. Topics covered were the strategic benefits of this new network, technological advancements, and the future of coworking ecosystems. Read on for some key takeaways from the dynamic discussion — including how Yardi’s CoworkingCafe is helping to bring key elements together.
Creating a New Paradigm in Workspace Flexibility
Anant Yardi talked about how the industry is experiencing three major changes. First, the hybrid work model allows talent to work from home, coworking spaces or leased offices. Second, companies, especially tech firms, are hiring talent without requiring relocation to a central office. Third, video conferencing is merging digital and physical meetings, often with a mix of in-person and remote participants. These trends are transforming how commercial office space is used. Traditional office buildings are evolving to include coworking spaces and amenities. Knowledge workers need easy access to book spaces anywhere. Large commercial buildings are incorporating flexible spaces and amenities to attract tenants. This shift is creating a growing network of flexible workspaces, and operators play a crucial role in this ongoing transition.
John Santora commented that WeWork is positioned for long-term growth and focused on innovation through new partnerships. They’re working on technology advancements with Yardi and others to grow their platform and expand globally while remaining focused on their members. He added, “When you go on the WeWork Workplace app you will see all available locations. We’ve just added 75 locations in 50 different markets and for our members it’s a seamless and excellent experience.
As part of United Franchise Group, Jason Anderson of Vast Coworking (Vast) talked about the company’s franchise business model. Unlike other flexible office space operators who later adopted franchising, they were a franchisor first. This unique approach allowed them to grow quickly, as they were already set up to build and support franchise organizations. They saw the coworking industry as ripe for franchising, and their model has proven successful.
Anant added that the WeWork Workplace product, launched two years ago, allows real-time bookings at any WeWork location. With the new affiliate program, including Vast franchise locations, users can now book in real-time at both Vast and WeWork locations. This mature B2C platform has added the ability to link with affiliates, starting with Vast, thanks to their use of Yardi Kube. This integration connects Yardi Kube, WeWork Workplace and CoworkingCafe seamlessly.
Connecting the Pieces: Meeting Needs and Optimizing the Network
With regard to Yardi’s enthusiasm for this new network, Anant pointed to the evolving use of office buildings and the opportunity to repurpose vacant spaces. Six years ago, the company acquired Yardi Kube (formerly WUN Systems), which many franchise operators now use. They recognized the need for flexible space booking, leading to the successful integration of WeWork locations with over 100,000 members. To connect all the elements, Yardi introduced CoworkingCafe, which links all available locations with Yardi Kube and WeWork products. Additionally, Yardi acquired Bluepoint, a seamless global booking and access control system that provides digital keys.
Anant explained, “To clarify how the three pieces work together, Yardi Kube is used to operate a set of locations managed, owned or franchised by one operator. Workplace is intended for companies to enable their employees to make bookings. And CoworkingCafe is the exchange behind these pieces that connects all the locations.”
Another significant advantage of using CoworkingCafe is the ability to manage both owned and unowned lead channels from a single database. This unified approach simplifies the process of tracking and nurturing leads, ensuring that no opportunity is missed. A single database for lead management makes it easier for teams to access and update data and ensures that all leads are handled consistently and effectively.
Collaborating for a Great Flexible Future
Here are some figures to consider, offered to the group by Anant: today in the U.S., there are approximately 7000 locations that cover approximately 120 million square feet. Multiple surveys indicate that corporations are looking to transition around 20% of their space requirements to coworking and flex. The total size of the office market in the U.S. is approximately 5 to 6 billion square feet. So, the 120 million square feet could potentially grow to 500 million and up to one billion — making it evident that there’s sufficient opportunity in terms of growth for everybody.
Anant’s closing message was clear, “There’s a tremendous opportunity to collaborate and compete where competition is appropriate and when we all work together in a partnership, in a network, in an alliance, I think everybody will benefit. That includes the operators, the companies that need space, as well as the individual members that depend on coworking operators.”
Listen to the complete podcast episode.
Learn more about Yardi Kube and CoworkingCafe.