WeWork, which is seeking $500 million to finance yet more growth, boasted 220,000 members as of March 1, up from 7,000 four years ago. Those members have access to 251,000 desks in 234 locations worldwide. As revenues have risen to roughly $800 million, costs are rising faster, resulting in a total net loss of $934 million last year.
According to its bonds documents, WeWork needs at least 60 percent occupancy to cover each location’s costs. Last year, it filled 81 percent of desks, up 5% from a year earlier. WeWork now has members from about 22 percent of the Fortune 500. With $5bn in rent due by 2022, WeWork now looks to purchase and own its buildings to reduce its costs of renting buildings it operates in.