WeWork Offering Bigger Commissions For Big 3 Firm Brokers
WeWork has struck a deal to give brokers at Cushman & Wakefield, JLL and CBRE fatter commissions if they help lease up its co-working spaces.
Under the deal, the brokers will get a 20% fee on a one-year lease and 5% on expansions and renewals. For the past year, WeWork has offered brokers from all companies 10% for the first year of a lease and 2% for expansions and renewals, Commercial Observer reports.
“WeWork is unique in that as we become more sales driven with our real estate approach we can partner with real estate firms on both sides — on the site selection and lease sourcing side and the client member introduction side,” WeWork's head of transactions and analytics, Julia Davis, told CO. “We are hoping to leverage those relationships.”
The co-working giant will “partner with the firms on a non-exclusive basis” to find an agreed-upon, undisclosed square footage for WeWork locations in North America, WeWork told CO. In turn, those firms will bring more clients to WeWork.
However, one broker CO spoke with was far from impressed, describing the deal as a “minor development” and saying they were “not even sure what it means other than we will get a few assignments as will the others to find them space and offer WeWork [spaces] to our clients as an option.”
WeWork, which pulled in $900M in revenue last year, plans to open 200 new locations this year. Last month, the co-working giant signed a deal to take 177K SF at 18 West 18th St.
Read more at: https://www.bisnow.com/new-york/news/office/wework-chelsea-full-building-lease-18-west-18th-st-85587?utm_source=CopyShare&utm_medium=Browser
Read more at: https://www.bisnow.com/new-york/news/office/wework-chelsea-full-building-lease-18-west-18th-st-85587?utm_source=CopyShare&utm_medium=Browser
