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WeWork says inflation and hybrid working have ‘dramatically increased’ demand for flexible workspace

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Global inflationary pressure are pushing companies to be “more nimble” with their corporate real estate portfolios, according to WeWork.

“This … has created a need for companies to seek flexibility in how they manage and think about their workspace,” said Sumit Chopra, international president and chief operating officer of the co-working space.

“Which of course is driven by a revolution in the whole work culture and the phenomenon of hybrid work what has happened in the last few months.”

Speaking to CNBC”Street signs of Asia“On Tuesday, Chopra said that how companies are trying to bring back employees who work from home into the workspace, they focus on creating engagement and a “collaborative culture.”

“So that’s led to a lot of companies, big and small, corporate clients, freelancers, startups … looking at the flexible space sector and companies like WeWork much more favorably than we’ve seen in the last, say, three years ago,” he added.

“This has led to a dramatic increase in demand for flexible workspace for us around the world.

More employees want flexible work patterns, says WeWork

WeWork reported last month 37% revenue growth compared to last year to $815 million in the second quarter. Its quarterly net loss also fell 31% year-over-year to $635 million.

The enterprise segment, made up of large Fortune 500 and 100 companies, makes up a large part of WeWork’s global business, Chopra said.

“Last year, the enterprise segment represented more than 45% of our global business. This part of our business has grown significantly over the last 2½, 3 years.”

Singapore is a big market

On Tuesday, WeWork launched its flagship asset in Asia in Singapore, a 21-story office building for rent.

Chopra said this underscores WeWork’s belief in Singapore as an “established global economic hub”.

He also added that its location is well suited to attract large corporate clients, small businesses and freelancers.

“Singapore is a key market for us in the Asian region and Asia as a region is a significant part of our global business.”