INTERVIEW. WeWork Boosts Nearshoring in Mexico, and Its Revenues Increase by 37% in LATAM

According to Karen, WeWork has focused on capitalizing on investment opportunities in Latin America in the past two years, which "has shown promising signs of economic recovery, embracing hybrid work models and a renewed focus on productivity." The company's high executive highlighted that focusing on the specific needs of its Latin American clients has propelled WeWork in the region, with revenues experiencing significant year-on-year growth of 37% at the end of the second quarter of 2023.

"Brazil and Mexico are the most relevant markets in Latin America, but in 2023, we celebrated historical occupancy levels in Mexico, Colombia, and Argentina," explained Karen Scarpetta, CEO of WeWork Spanish Latam.

But how does one measure WeWork's success in Latin America?

Karen emphasizes that WeWork's success is not measured solely by the square meters it occupies but by how it's transforming the office real estate market in Latin America.

WeWork's work process is described as "completely evolutionary," meaning they constantly communicate with clients to assess and understand their needs, offering them personalized and cutting-edge products and solutions. WeWork's philosophy revolves around creating connections among businesses in spaces that are measured not only by their size but also by their efficiency, quality, and utility for businesses, whether they are startups or multinational conglomerates.

In Karen's words, human interaction is essential in defining a space's purpose. Technology also plays a crucial role in office adaptation. This entails not only tracking usage trends and traffic in spaces, as well as work dynamics in physical and hybrid models, but also providing tools to determine the duration and type of contract that best suits each company's requirements and financial capacity, ensuring flexibility in spaces, timelines, and rental costs.

However, each region in Latin America exhibits specific trends. In Bogota, Colombia, for example, occupancy has been driven by a lack of new projects. In Sao Paulo, Brazil, the challenge has been the limited availability of spaces. In places like Mexico City, the strategy has involved selecting strategic locations in a market with substantial new inventory deliveries.

In any case, WeWork's strategy is to leverage technology to seize opportunities, whether in markets with shortages or surpluses of inventory or high or low demand, as long as there is an opportunity to build communities. This depends on understanding each region's advantages and using them to unlock its productive potential. This is what Karen means when she says that every WeWork space has a purpose.

"We have to keep an eye on human trends and use technology to understand them and develop solutions and products that cater to these emerging needs," explained Scarpetta.

The flexibility of spaces and contracts has been particularly successful in Mexico and Brazil. One difference between these markets is that in Brazil, there is much "capillarity," meaning extensive and effective coverage that allows clients to use different spaces, often changing their business's operations center according to their needs. In Mexico, it is common for companies to choose a location, decide to establish themselves, and centralize their operations.

"In the end, what's most important is for each company to focus on what it needs to achieve results, and in that process, we, as experts in office development and workplace experiences, can stay at the forefront and even provide some companies with what they haven't realized they need," Karen concluded.

WeWork's success in Latin America lies in its constant evolution, adapting to the trends in each market, driven by the needs of people and businesses. At SiiLA, we closely monitor changes in the commercial real estate sector and its key players to understand trends and maximize investment opportunities for our clients. For more information, explore SiiLA REsource or contact us at contacto@siila.com.mx.