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Co-working space costs nearly 15% more than office space, study says. Is it worth it?

More than 1.7 million people will work in co-working spaces by the end of 2018, according to the Global Coworking Survey, and a staggering 29 percent of such spaces were opened over the last year.

Growth of this new workplace trend is most impressive in San Francisco, the city of seemingly infinite startups, many of which aren’t large enough to warrant an office space, but too big for the CEO’s living room.

San Francisco has 51.45 co-working spaces for every 100,000 people — more than any other city in the country — according to a new survey from business development tool SimpleTexting. The study compiled data from Yelp, the U.S. Census Bureau and multiple office-space rental websites.

The cost of co-working space for a single employee is actually more expensive than traditional office space, by about $400 a year in San Francisco, the study found. A years-long co-working pass in the city is about $4,572, compared to $4,200 in an office. Nationally, co-working rent costs an average 14.8 percent more per employee than traditional office space.

 

 

 

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Facebook to move into big WeWork outpost as co-working company prepares to open largest-ever location

Talks between the two giants about WeWork’s new Mountain View location, its largest sublease to-date, have been ongoing for months. But this week the two finally struck a deal.

When WeWork this year opens its first Mountain View offices — its largest-ever lease — half of that space will be filled by Facebook.

Both companies told the Silicon Valley Business Journal about Facebook’s sublease which totals more than 200,000 square feet in one of two new office buildings at The Village at San Antonio Center. The deal comes after months of discussions between the two companies. The second WeWork office building on the site will be open to any company seeking co-working space.

Initially, the talks between the New York-based co-working company and the Menlo Park-based tech giant had been leading toward Facebook taking over both buildings at 391 and 401 San Antonio Road, which would total about 450,000 square feet, the Business Journal reported in February. But Facebook in recent months has rapidly snapped up huge swaths of office space in Silicon Valley — including about 1 million square feet in Sunnyvale — and its needs evolved quickly, two sources with knowledge of the discussions told the Business Journal.

Facebook will set up shop in the eight-story, approximately 225,000-square-foot office building at 401 San Antonio Rd., which is slated to be ready for move-in by early September, according to WeWork.

Read more from Silicon Valley Business Journal

 

 

WeWork signs biggest lease of Q1 in San Francisco

WeWork just added 251K SF to its San Francisco footprint.

The co-working provider inked the city’s largest lease of the first quarter at the Union Bank Building with landlords Kennedy Wilson and Takenaka Corp., the San Francisco Business Times reports. WeWork signed an 18-year lease for all 20 floors and plans to renovate the building.

The JV bought the building at 400/430 California St. in 2016 for $135M when it was fully leased to MFUB Union Bank, which plans to vacate the building.

The co-working company began occupying it newest location this year at Salesforce Tower, where it leases 75K SF. WeWork has rapidly expanded its Bay Area footprint in recent years and signed leases for over 1M SF in 2017. It also has expanded into Oakland, San Jose and Mountain View within the last two years.

WeWork Managing Director for U.S. and Canada West Jon Slavet told the San Francisco Business Times that the company cannot keep up with demand in the Bay Area, where its community is now over 13,000 members. Its members range from startups to enterprise businesses.

WeWork plans to open its first phase at 430 California during Q1 2019.

Read more from Bisnow

 

 

Why WeWork is giving away free office space in S.F. and 10 other cities

After more than tripling its Bay Area footprint last year, WeWork is now ramping up its philanthropic efforts.

The co-working startup is providing free office space for 10 entrepreneurs who are military veterans for six months in San Francisco and 10 other cities. The program, Veterans in Residence, is a partnership with BUnker Labs, a Chicago-based nonprofit incubator for veterans. It’s the first time WeWork has provided free space in multiple cities through a national program.

In WeWork’s 25 Taylor St. office in the Tenderloin, a 10-seat office that is normally priced at $5,800 per month is now operated by Bunker Labs. In the country’s most expensive office market, it’s a rare offering of new, free space.

Finding affordable office space is “incredibly expensive. It’s time-consuming. It’s difficult,” said Mike Nemke, a former member of the U.S. Army Special Forces who served in the Middle East and joined the veterans program. Nemke is co-founder of a data science startup, Datamyne.ai, and MKTR.ai, which provides marketing and consulting to other startups.

Read more from San Francisco Business Times