WeMRKT

Disruptive business models in the real estate sector are highlighting the potential to leverage property assets to create other revenue streams. WeWork has been particularly adept at transforming ‘tenants’ into ‘members’. Tenants pay rent, but members it seems are open to buying a much wider collection of services and develop loyalty and stickiness to their ‘community’. A recent example of this is WeWork’s WeMRKT concept, kicked off over the summer in Hudson Street, Manhattan. Any WeWork member can pitch to have their product promoted in the store. For successful members this provides a new distribution channel for their products, focussed on a targeted member demographic, together with brand and marketing support. For WeWork, they take a skim off the revenue, turning them essentially into the retail arm of their membership. They have plans to open 500 similar concept stores over the next two years, together with an online channel. Space is a vehicle to engineer choices. Its strength comes in its finite nature, which, when compared with the vast expanses of the internet, constrains customer options. In the process this adds value to the products which make the cut, and to the property owner who can offer that opportunity.