Adam Neumann Dives Back Into Coworking With New Workflow Service
By Isabelle Durso October 2, 2024 12:41 pm
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Adam Neumann is back in the coworking game.
After trying, and failing, to buy back WeWork (WE), Neumann is launching a competitor called Workflow as part of his new real estate brand Flow, according to Bloomberg, which first reported the news.
Similar to WeWork, the new Workflow service will offer workspace on flexible terms. But unlike WeWork, it will be a “calm” and comfortable environment where companies and individuals can get their work done, Bloomberg reported.
WeWork, which Neumann once grew to a whopping $47 billion valuation then sent down the drain toward a November 2023 bankruptcy, was initially organized through long-term leases with landlords and flexible short-term leases to tenants.
That proved to be an unreliable structure (as WeWork and others found), and Neumann’s new Workflow will eschew that by offering coworking space only in properties owned by Flow or entering into partnership agreements with landlords, according to Bloomberg. Workflow will be offered to building residents and have for-rent private offices for outsiders.
Neumann told Bloomberg that Workflow is vital in a post-pandemic world where people feel a “lack of community” and “disconnection.” A spokesperson for Flow declined to comment.
Neumann’s latest attempt to conquer the coworking world comes as his real estate brand Flow — which pulled in $350 million in funding from venture capital firm Andreessen Horowitz to start — launched sales for its Miami condo development, according to an announcement from the company Wednesday.
The 40-story, 466-unit Flow House Miami tower at 697 North Miami Avenue will be in addition to Neumann’s existing rental properties in Fort Lauderdale and Atlanta. The new units in Miami — which include studios starting at $450,000 and one-bedrooms at $600,000 — are set to become available beginning in 2025, the company said.
“We learned while building Flow over the last two years that the exact same needs faced by renters are also faced by owners in terms of lack of community and lack of connectivity,” Neumann said in a statement. “We are excited to build upon our vision and bring the full Flow experience, which is rooted in community and a sense of belonging, to anyone looking for a better experience from their permanent residence.”
Flow, which was founded by Neumann in 2022 and is now valued at more than $1 billion, will also act as the platform for Workflow.
Neumann initially said he never intended for Flow to include office space, but he eventually created Workflow in response to increased demand as a “positive and productive mindset” providing “neighbors with space, opportunities and connections for meaningful work,” according to Bloomberg.
The new coworking service will (hopefully) come as a major departure from WeWork, which Neumann attempted to buy back in April but failed when real estate tech company Yardi Systems secured a 60 percent ownership stake in the company along with several other lenders, sans Neumann, as Commercial Observer previously reported.
In June, WeWork officially exited Chapter 11 and named Cushman & Wakefield’s John Santora as CEO.
And while it looks like WeWork might finally be out of the woods, it remains to be seen how Workflow fares.
Isabelle Durso can be reached at idurso@commercialobserver.com.
