WeWork Companies Inc., a New York-based firm that provides shared office space, has been valued at $10 billion, up from $5 billion just six months earlier. Here is the company’s business model: WeWork rents office space, builds it out into a modern, incubator-style space, and then leases it to startups and small companies on a monthly basis. WeWork’s current valuation makes them the fourth-highest valued publicly traded office space provider.
As of June 24th, We Work has received $400 million in capital investment, a great deal of which came from Fidelity Management & Research Co. This high evaluation does not have all conventional office landlords running for the hills. Martin Selig, a Seattle-based landlord with a portfolio containing 4 million square feet of office space, feels that WeWork will provide office space for businesses that will eventually seek out his more traditional office space once they are large enough.