Investment follows creation of exclusive strategic partnership
to create new offerings for real estate owners and occupiers
Cushman & Wakefield (NYSE: CWK), a leading global real
estate services firm (the “Company”), today announced the firm made
a strategic investment of $150 million on October 20 in WeWork
(NYSE: WE), one of the leading global flexible space providers. As
part of its strategic investment, Cushman & Wakefield’s Chief
Investment Officer & EVP of Strategic Planning, Nathaniel
Robinson, will serve as an Observer to WeWork’s Board of
Directors.
The two companies recently announced an exclusive strategic
partnership intended to provide clients with best-in-class office
operations by combining WeWork’s proprietary hospitality and
technology-enabled services with Cushman & Wakefield’s industry
leading asset and facilities management services. In the time since
that announcement, the firms have reported a positive reception
from major institutional real estate owners and Fortune 500
occupiers, leading to early pilot program opportunities.
The partnership will also help grow WeWork’s new landlord and
tenant-focused offerings through two initiatives. The first
initiative will focus on helping building owners and corporate
occupiers improve the daily user experience through use of WeWork’s
proprietary software that will integrate traditional building
features like access control and reservation systems with onsite
hospitality and amenity programming. The same technology will also
provide access to critical asset usage data, guiding capital
investments to support leasing, tenant or employee retention,
operational efficiency, ESG/energy goals and, ultimately, return on
investment.
The second initiative will allow owners to create new revenue
streams by operating flexible workspace centers within their
portfolio. Over time, as those tenants grow out of the flex space,
Cushman & Wakefield’s leasing and project management teams will
be able to convert tenants into more traditional office space,
within the same building.
Corporate occupiers have also been very focused on managing the
employee experience as workers return to the office. While Cushman
& Wakefield has served the tech industry for years, where
facilities management has regularly been positioned as a critical
link to managing employee engagement, the new partnership with
WeWork now creates similar opportunities with Fortune 500 occupiers
across all sectors.
“WeWork is recognized as an innovator in our industry because
they have demonstrated their ability to build a tenant experience
that people are drawn to, and they’ve been a pioneer in using
technology to efficiently manage that experience and the office
space around it,” said Brett White, Executive Chairman & CEO of
Cushman & Wakefield. “Through this partnership, Cushman &
Wakefield will scale WeWork’s technology offerings around tenant
experience beyond their own branded spaces into the rest of the
office market, giving our clients access to leading data and
insights that drive optimal workplace experience and return on
investment.”
“More than ever, property owners are looking for a competitive
advantage to drive tenant demand for their offices. Meanwhile,
today’s office worker has elevated expectations for a workplace
experience that is convenient and customizable, while allowing them
to build community with other workers. Even in the early days of
this partnership, we’re seeing many opportunities to scale the
‘WeWork experience’ much like we scale our traditional building
management services,” said Marla Maloney, President of Asset
Services at Cushman & Wakefield.
"Cushman & Wakefield is our strategic partner as we expand
our ability to provide tenants and landlords with the technology
and hospitality expertise to power flexible space solutions within
their own portfolios. As flexibility has become a priority for real
estate decision makers around the world, we are excited to bring
the WeWork product to Cushman & Wakefield’s extensive network,”
said Sandeep Mathrani, CEO of WeWork.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real
estate services firm that delivers exceptional value for real
estate occupiers and owners. Cushman & Wakefield is among the
largest real estate services firms with approximately 50,000
employees in over 400 offices and 60 countries. In 2020, the firm
had revenue of $7.8 billion across core services of property,
facilities and project management, leasing, capital markets,
valuation and other services. To learn more, visit
www.cushmanwakefield.com or follow @CushWake on Twitter.
Cautionary Note Regarding Forward-Looking Statements
This release may contain forward-looking statements that reflect
the Company’s current views with respect to, among other things,
future events, results and financial performance, which are
intended to be covered by the safe harbor provisions for
forward-looking statements provided by the Private Securities
Litigation Reform Act of 1995. These statements can be identified
by the fact that they do not relate strictly to historical or
current facts, and you can often identify these forward-looking
statements by the use of forward-looking words such as “outlook,”
“believes,” “expects,” “potential,” “continues,” “may,” “will,”
“should,” “could,” “seeks,” “approximately,” “predicts,” “intends,”
“plans,” “estimates,” “anticipates,” “target,” “projects,”
“forecasts,” “shall,” “contemplates” or the negative version of
those words or other comparable words. Any forward-looking
statements contained in this release are based upon the Company’s
historical performance and on its current plans, estimates and
expectations in light of information currently available to us. The
inclusion of this forward-looking information should not be
regarded as a representation by us, that the future plans,
estimates or expectations contemplated by us will be achieved. Such
forward-looking statements are subject to various risks and
uncertainties and assumptions that could cause actual results to
differ materially from those anticipated, including, but not
limited to, the effects of the strategic investment on the
Company’s operations, financial results, financial condition,
business, prospects, growth strategy and liquidity. Additional
factors that could cause results to differ materially from those
described above can be found in the Company’s Annual Report on Form
10-K and subsequent filings with the Securities and Exchange
Commission. The Company does not undertake any obligation to
publicly update or review any forward-looking statement except as
required by law, whether as a result of new information, future
developments or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20211029005272/en/
Media Contact Cushman & Wakefield: Aixa Velez
aixa.velez@cushwake.com
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