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Transcript of The New Economics of Real Estate Justin SegalJohn WilsonJeff JohnsonJohn Gallander Boxer...
![Page 1: The New Economics of Real Estate Justin SegalJohn WilsonJeff JohnsonJohn Gallander Boxer PropertyPaladin Capital GroupLiquidSpaceEquity Commonwealth.](https://reader035.fdocuments.in/reader035/viewer/2022081521/5a4d1b237f8b9ab0599964ab/html5/thumbnails/1.jpg)
The New Economics of Real Estate
Justin Segal John Wilson Jeff Johnson John GallanderBoxer Property Paladin Capital Group LiquidSpace Equity Commonwealth
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How is WeWork valued at $10 billion?
What did they do to get to this?
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Numbers to Consider
• 2014 Regus acquires Evans Easyspace, then sells to Bridges Ventures for £84m ($134M)
• 2014 WeWork raises $355M from JP Morgan & VCs at $5B valuation
• 2015 Regus acquires Abby Executive Suites • 2015 WeWork raises $400M from Fidelity @ $10B valuation
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From GWA 2015 Financial Study
• Best performance is in fastest growing: Coworking• “Coworking spaces are experiencing explosive growth.”• There are now more coworking units than business centers being
built in North America• Search for word “disruptive”: “no results found”
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Interesting Trend
• Six metro areas own 80% of US flex supply space*
• The same six regions enjoy 78% of US venture funding*
*CBRE Research Report: Americas Office 7.22.2015
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For Startups, Not Just Space
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How is WeWork Valued at $10 Billion?
•Addressable Market•Beyond the Current Product Set•Business Performance and Credibility•Technology Network Play
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Addressable Market…
• 34% of US workers (50m) work independently, 60% by 2020. • 20% of independent workers (10m) are millennial. • “Corporate Workplace Services” target the much larger market of
(40m) corporate mobile and independent workers ages 30-55.
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Beyond the Current Product Set…• One such product extension, as
has been noted in media reports, is their ongoing investment in “WeLive” micro apartments serving the urbanized, millennial customer base.
• We Live Crystal City DC and 110 wall street - this year...October and November...
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Business Performance• Location liquidity - Pre-sold before opening in most locations• Predictable pipeline of new locations • Rising per member revenue• Supportive community, curated services, space when you need it…
• Productivity - Conference rooms, Telephone, Printing• Wellness - TriNet, Momofuku, Fitist• Efficiency - General Assembly, Mycheck, Axiom• Growth - Ink, Shopify, Amazon Webservices
• Partnerships driving a rise in service revenue• Membership beyond space - Accelerated growth of total members e.g. both
Commons members and Space members
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Technology Networks• Network Orchestrators - These companies create a network of peers
in which the participants interact and share in the value creation. • They may sell products or services, build relationships, share advice, give
reviews, collaborate, co-create and more. • Examples include eBay, Red Hat, and Visa, Uber, Tripadvisor, Airbnb…30-40X
as a technology network.
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For traditional business centers that don’t see themselves as community based, collaborator incubators, how can they leverage their relationship with their landlord?
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TRADITIONALLANDLORD
WORKSPACEOPERATOR FLEXIBILITY &
CREDITBASIC
SERVICES
INTERPLAY &OPPORTUNITY
TRADITIONALSPACE NEEDS
SPACE SERVICE
[ NULL ]
SOPHISTICATEDSERVICES
[SOMETHING]
LEASE SOMEHOW
DYNAMIC DESIRES
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“NEEDY”
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“WANTY”
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DATA
CONTENT DELIVERY
FRONT-END
PRODUCTS
FULFILLMENT
CUSTOMERS
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ON SITE STAFF
PROGRAMMING
SUPPORT SERVICES
CONNECTIVITY
SPACE
MEMBER INFO
OFFERS
PROMOTION
PURCHASING
BUSINESS SERVICES
EDUCATION
NETWORKING
ART INSTALLATIONS
CUSTOMER EVENTS
TELEPHONY
INTERNET
WIFI MANAGEMENT
TECHNOLOGY
SWING SPACE
MEETING SPACE
CAFE / CASUAL SPACE
PARTY SPACE
SPECIALTY SPACE
EVENT PLANNING
CONCIERGE
COMMUNITY MANAGEMENT
CUSTOMER RELATIONS
COMMUNCATIONS
CUSTOMER INSIGHTS
VIRTUAL OFFICE
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Questions ???