CloudVO City Guide: Miami, FL

Miami is the cultural, economic and financial center of South Florida. It’s also the most populous county in Florida and is known for being a major center and leader in finance, commerce, culture, media, entertainment, the arts, and international trade. All in all, this is a great place to run your business, hold business meetings, or add a professional address to your portfolio. Take a closer look at some of our shared workspaces in Miami with great options for Virtual Offices and Meeting Rooms.

CloudVO City Guide Miami-Florida

Downtown Miami

CloudVO partner, Capital Business Center, provides Virtual Offices and Meeting Rooms found in the heart of Miami’s Downtown area on the Famous Brickell Avenue. This shared workspace is the perfect location for any company. It has convenient access to public transportation and is centrally located. It’s a great shared workspace for business meetings or lunches because it’s in close proximity to numerous dining and entertainment options as well as a plethora of high-end hotels.

CloudVO City Guide Capital Business Center Miami

Another CloudVO partner, Quest Workspaces 1395 Brickell, is located downtown on the world-famous Brickell Avenue in the heart of Miami. This space boasts Virtual Offices and Meeting Rooms with great views. Found in the Class A Espirito Santo Building, this virtual office space is surrounded by fine dining options, restaurants and shops.

CloudVO City Guide Quest Workspaces Brickell Avenue Miami

CloudVO partner, Quest Workspaces 777 Brickell, offers Virtual Offices and Meeting Rooms where you’ll only pay for the office time or meeting room hours you need but still receive all the perks. This workspace solution is perfect for start-ups, home-based businesses, or those expanding to new markets. This workspace is ideally located near a plethora of restaurants and shops only minutes from the water.

CloudVO City Guide Quest Workspaces Meeting Room 777 Brickell Miami

Flagler Street

CloudVO partner, Starthub has Virtual Offices and Meeting Rooms located on Flagler Street off of I-95. This location boasts a professional atmosphere and services, a conference room, and coworking space to help accommodate all your business needs. There are a variety of dining, retail, and entertainment options in the immediate area.

CloudVO City Guide Partner Starthub Miami

Another CloudVO partner, Next Workspaces, has Virtual Offices and Meeting Rooms that feature a stylish design and great pricing combined with great service. This is a great option for startups or small businesses. This workspace is ideally located in Miami’s financial district within walking distance to several local bars and cafes.

CloudVO City Guide Partner Next Workspaces Miami

Northern Miami

CloudVO partner, Empire Executive Offices, offers upscale Virtual Offices with an abundance of business options for your benefit. Everything you need to run your business smoothly is readily available. This location has free onsite parking with easy access to I-95 and the Florida Turnpike.

CloudVO City Guide Partner Empire Executive Offices Miami

Goldbetter provides Virtual Offices in an ideally situated park-like setting that’s minutes from major roadways, sporting venues, shopping centers and entertainment attractions. This is the perfect location for a business that requires a Miami-Dade presence.

CloudVO City Guide Partner Goldbetter Miami

Central Miami

CloudVO partner, Latitude One offers Virtual Offices and Meeting Rooms fantastically located in the center of Miami. This means that Miami International Airport is only 7 miles away and there is easy access to major landmarks like the American Airlines Arena. In addition, there is a unique selection of boutique shopping and fantastic dining. This is the perfect location if you need to conduct business and also entertain.

CloudVO City Guide Partner Latitude One Miami

If you’re planning to stay in the area, here are a few of the most popular hotels. For a more budget friendly option, the Miami Marriott Biscayne Bay offers classic rooms and suites right on the water. The Kimpton EPIC is a 4-star polished hotel in a high-rise that offers plush rooms plus free wine hours. For more upscale options there is the Ritz-Carlton Coconut Grove and the Four Seasons Miami that both offer refined rooms and stunning bay views.

CloudVO City Guide Miami Biscayne Bay

Miami is a hub for international trade, business, and culture making it a prime location for business. So when it comes to your professional business needs, CloudVO has an array of great options for you. Virtual Office plans are available at all of the aforementioned locations and offer professional meeting rooms, digital mail services, as well as the use of a business address with options to add live phone answering services.

About CloudVO

CloudVO is the umbrella brand of Cloud Officing Corp., headquartered in San Francisco, California. CloudVO’s mission is to provide comprehensive virtual office, coworking and meeting room solutions to professionals under a Workplace-as-a-Service™ model. CloudVO grants preferential access to day offices, coworking space, and professional meeting rooms in 700 locations worldwide for distributed workers on a subscription or a pay-per-use basis.

Are Coworking Operators Like WeWork a Threat or an Ally for Commercial Landlords?

A recent blog post published in Finance & Commerce entitled “Landlords, rivals push back against WeWork” expresses concerns from some landlords and their brokers that WeWork is stepping on their turf.

The article is interesting, and I thought it would be worthwhile for me to highlight some partial agreement with the author’s analysis, while sharing some divergent and expanded views as well on the evolving nature of Landlord/Operator relationships.

WeWork Window Sign San Francisco 201 Spear Street

  1. A new $42 bln valuation for WeWork.
    This is the highest number I have come across so far and a mind-blowing reflection of WeWork’s disruptive nature, as seen by WeWork’s investors. We could be a bit skeptical of that number until we can review the (private) agreement for the last capital infusion by SoftBank. Restrictions and conditions applied to WeWork on capital repayments, conversion options, and other features in the deal may considerably lower any nominal valuation. But no matter the exact number, that valuation remains gigantic, and way out of range of the multiples experienced by publicly traded companies in the sector. Clearly SoftBank is comfortable with the progress made by the company as they keep on funding. Clearly WeWork, and by extension, the entire coworking industry, is perceived as a disruptive force in the traditional commercial real estate world.

2.   Landlords’ Attitude is changing.
“More than a dozen real estate and banking executives interviewed by Bloomberg expressed misgivings about working with the start-up,” says the Finance & Commerce article – well, maybe, but let’s not forget that for one dozen skeptics, you have several dozens of landlords who are raising their hands to attract WeWork in their buildings, even though WeWork has, in many cases, replaced the fat Letters of Credit or Security deposits of the past with meaningless guarantees for the first 6 months or 12 months of rent. It’s not difficult to guarantee the first year of rent… when 9+ months of it is free! If landlords’ attitudes have changed, it is that WeWork, and the entire coworking industry, is being more actively sought after by landlords throughout the country than it ever has. A dozen skeptics won’t stop this powerful wave.

3. Reduced Collateral in Leases.
We can also point out that the considerable drop in security collateral experienced by landlords with coworking players in the last few years does not put their project necessarily in a more fragile financial situation. The best collateral of a coworking operation is the operation itself, with hundreds of members sending recurring payments every month which won’t disappear, because their business identity is tied to that location. There is more than meets the eye than an apparent threat to the financial stability of these collateral-less transactions.

Lease Agreement CloudVO Blog WeWork and Landlords

4.   Debunking the myth of Corporate Guarantees.
Corporate guarantees can be very dangerous for landlords by giving a sense of false security. They were the reason why Regus filed for Chapter 11 in 2002, by creating a domino effect due to growth that was too aggressive in the Western US during the dot-com boom of the late nineties. The majority of their assets were performing well, but a series of imprudent leases, with corporate guarantees, at the peak of the market created a domino effect that affected all landlords. Under Chapter 11, Regus could attempt to restructure all of their leases, including with well performing locations. That did not help the Regus landlords in any way, corporate guarantee in hand or not. What saved them were other flexible space operators taking over the locations vacated by Regus.

That is how Pacific Workplaces (Pac) experienced its initial growth 15 years ago, by taking over a former Regus franchise location in Walnut Creek, California when they failed on their rent obligations. The Landlord in the end did not need the collateral, corporate guarantees, or personal guarantees that Pac would not offer (at the time Pac had only 2 existing locations). They cared that a knowledgeable operator would optimize the operation and pay market rent. That approach served them well. Two lease renewals and two lease expansions later, Pacific Workplaces Walnut Creek has never failed on its rent obligation, has become the largest tenant in the building, all to the delight of happy asset managers!

CloudVO Sister Company Pacific Workplaces Walnut Creek new coworking space and lounge

Formerly a Regus/HQ, Pacific Workplaces acquired its location in Walnut Creek, CA in 2004.  The location just completed a successful space refresh and offers all shared workspace options including coworking memberships, virtual office plans, private offices, and meeting rooms.


  1. Disruption of the tenant-landlord-broker relationships.
    “It’s more about disrupting the relationship of tenants to landlord, of tenants to brokers, of brokers to landlords,” writes the author in the Finance & Commerce article. There is much truth in that statement. WeWork is understandably in the spotlight, but the entire coworking industry is a threat to brokers in that it dis-intermediates the function of a broker for small space requirements, an increasingly large section of the market. The demand is meeting the supply online. For example, 85% of the leads of Pacific Workplaces, a California-based coworking operator with 18 locations, come from online channels, and only 1% come from traditional brokers. Online leads can originate from the operator’s own digital marketing efforts and from resellers and marketplace providers like CloudVO or Liquidspace, who are successful disrupting the role of traditional brokers, in part due to the more transparent nature of their online transactions, a refreshing approach, in contrast to the chronic opacity of traditional commercial real estate transactions. On the Enterprise segment of the market, companies with a large network of locations like Regus, WeWork or CloudVO have their own corporate account infrastructure that relies a lot less on traditional brokers and feeds off of what was once the brokerage word reserved territory.

6.  WeWork and Coworking Operators a threat to Landlords?
That is what the author of the Finance & Commerce piece argues. I think the truth is more subtle than laid out in that article. First, as a buyer of commercial buildings, it seems to me that WeWork is a beneficial player for the owners of assets they purchase, in that WeWork was the highest bidder. Otherwise the owner would presumably not have sold. Second, the trends towards mobility, the consumerization of the workplace, the continued decrease in corporate footprint per employee, are all threats to landlords in that the need for traditional commercial space is shrinking. Coworking and other forms of flexible office spaces are enabling these trends, but the threat to landlord is the trend, not the flexible office space operators. In fact, Coworking operators are natural partners for landlords to take advantage of that new secular trend. Managing coworking spaces is an entirely different profession than property management. Just as hotel landlords bring in franchise operators to manage the hotel (and don’t try to do it themselves), commercial office landlords need professional coworking operators to manage that new exploding demand.

Written by  Laurent Dhollande, CEO of CloudVO and Pacific Workplaces

About CloudVO

CloudVO is the umbrella brand of Cloud Officing Corp., headquartered in San Francisco, California. CloudVO’s mission is to provide comprehensive virtual office, coworking and meeting room solutions to professionals under a Workplace-as-a-Service™ model. CloudVO grants preferential access to day offices, coworking space, and professional meeting rooms in 700 locations worldwide for distributed workers on a subscription or a pay-per-use basis.

The “new work” model

The CloudVO team recently sponsored and attended the 2018 Global Workspace Association (GWA) and NAIOP Flex Office Conference in Austin, Texas.

There were many fantastic presentations on the changing landscape of commercial real estate in this new Workspace-As-Service world.  However, Antony Slumbers, the keynote speaker was particularly impactful.

Flex Office Conference 2018 - Antony Slumbers

Mr. Slumbers laid out his view of the very real, and very rapid changes that are occurring in this latest revolution of work. He shared that the ‘old work’ model of structured, repeated and predictable work tasks will be automated and that 49% of all tasks our workforce currently does, falls under this model and will be automated. The future of work, “new work’ will include tasks that incorporate skills of design, imagination, inspiration, creation, empathy, intuition, innovation and collaboration’.  Our workspaces need to be available to make this new work workable…that is, be places that maximize the productivity of these ‘thought’ workers.

McKinsey quote from Antony Slumbers presentation at GWA Austin 2018

As approximately 70%+ of US workers work for companies with less than 500 people, this means that the corporate mega-headquarters (think of Facebook and Google campuses) are not an option for most workers. Flexible, workspace-as-a-service space need to be ready to cater to the needs of the ‘new workers’.  In fact, Mr. Slumbers tells us that currently 60% of large companies embrace the flexible workspace, outsourced model as an option for some of their space needs.

The trends for continued growth of this model are very favorable as is seen in explosion of sharing economy business models.  People no longer embrace ownership as in the past, they just want access, on their terms. In fact, the very motivation for businesses is not to own an office but to have a productive workforce. Ownership is only required to the extent it enhances the productivity of the employees.  This means, that for those of us operating in the shared services workspace industry…our job is not real estate, it isn’t even hospitality, it is something far more important and action-oriented – it is creating the place that enhances and allows the most productivity of our clients.

The ‘new work’ force actually makes the office more important, but creating the right experience to match the new skills and the new mindset is more complicated.  The success of our businesses will be decided upon which companies best create and curate space and services and are prepared to monitor, measure and shift, nearly on demand, to meet the needs of its clients.

This is exciting stuff, folks!

View Mr. Slumbers’ Keynote slide deck from the conference.

About CloudVO

CloudVO is the umbrella brand of Cloud Officing Corp., headquartered in San Francisco, California. CloudVO’s mission is to provide comprehensive virtual office, coworking and meeting room solutions to professionals under a Workplace-as-a-Service™ model. CloudVO operates the  and  e-commerce sites and grants preferential access to day offices, coworking space, and professional meeting rooms in 700 locations worldwide for distributed workers on a subscription or a pay-per-use basis.

CloudVO Partner Compares Prices and Customer Reviews with Regus

It was not even close!

Our Northern California Partner (and sister company) Pacific Workplaces recently conducted a comprehensive comparison of Regus prices vs Pacific Workplaces  based on actual published prices, for a number of virtual office and meeting room bundle of services including:

  • Mail collection and forwarding
  • Digital Mail
  • Live phone answering
  • Bundled access to Day Offices (2 days and 5 days).

Pacific Workplaces also reported on the Regus customer reviews on Google and Yelp and compared them with its own, for each of the locations.

The methodology was the same in all 15 locations that were the object of this benchmarking effort, where nearby locations in buildings and shared office spaces of similar standings were targeted across both companies. The report published by Pacific Workplaces in all transparency includes all locations branded Pacific Workplaces, with no local spinning and no “pick & choose” element that could induce a competitive bias.

The analysis reports the price difference on a location-by-location basis which we can summarize as follows:

  • Regus Basic Mail Plans are 50%+ more expensive than at our CloudVO Northern California partner locations, on average.
  • Regus Virtual Office Packages, which add to the basic mail service a local phone, live answering services, and access to CloudVO Partner Pacific Workplaces versus Regus Price Analysis Blog Post2 days of day office each month, are on average 20%+ more expensive and considerably less flexible.
  • Regus Virtual Office Plus packages that provides 5-day access to day offices each month, on top of mail services, local phone number, and phone answering services, are on average close to 30% more expensive than at our Northern California partner locations, and infinitely less flexible.
  • Hourly rates on meeting rooms are over 70% more expensive. Really?
  • Customer Reviews on Yelp and Google also show big differences in favor of our Northern California partnering locations, often by a significant margin, based on several hundreds of reviews.

See details of this comparative analysis report on our partner Pacific Workplaces web site: Regus Price & Customer Review Comparison. There is also a paragraph that addresses the lack of price competitiveness of Regus in full time offices with reasons as to why.

Thank you Pacific Workplaces for sharing such a comprehensive bench-marking analysis.

Note that we have a few locations in Northern California with even more attractive prices for some of these virtual office services. Check them all on the San Francisco or California pages.

This result is consistent with our own research last year, when we conducted a comprehensive price benchmarking effort focused on hundreds of Regus and CloudVO meeting rooms in the U.S. that pointed to CloudVO meeting rooms being often 50% less expensive than Regus on an
apple-to-apple basis. See the report here.

About CloudVO

CloudVO is the umbrella brand of Cloud Officing Corp, headquartered in San Francisco, California. CloudVO’s mission is to provide comprehensive virtual office, coworking and meeting room solutions to professionals under a Workplace-as-a-Service™ model. CloudVO operates the and e-commerce sites and grants preferential access to day offices, coworking space, and professional meeting rooms over 650 locations worldwide for distributed workers on a subscription or a pay-per-use basis.

Brooklyn City Guide for GWA’s Office Evolution Attendees

CloudVOxWUN Brooklyn City Guide

Download Brooklyn City Guide

In two weeks, the Global Workspace Association (GWA) is teaming up with NAIOP to host their annual conference, aptly referred to as Office Evolution. This is the first ever partnership for GWA with NAIOP, the Commercial Real Estate Development Association.

GWA Las Vegas 2016 CloudVO team at booth

On the GWA side, nearly 300 operators from 29 states and 8 countries will be joining the NAIOP attendees at the Marriott New York Brooklyn Bridge for two days of education and conversation around the flexible office and workspace-as-a-service industries.

In order to make this exciting conference even more successful, we have co-created a GWA Brooklyn Guide and want to share it with you. You will find great tips on experiencing the main highlights, hottest spots, or unusual finds that Brooklyn has to offer.

Hundreds of attendees will attend this jointly held conference. GWA’s annual conference has become a central platform for the conversation around flexible office and workspace-as-a-service, and our team of experts at CloudVO look forward to connecting with partners and peers alike. This year, the audience includes shared workspace operators, commercial real estate professionals, landlords, developers, commercial real estate brokers and industry service and technology providers. The conference agenda is packed with discussion and expert panels, breakout sessions on operations, marketing, and technology, and of course, GWA carves out time for some social activities.

Our Brooklyn Guide is broken into three parts: “sights, eats, and drinks”, packing and transportation pointers, and for those interested or extending their stay, we feature some of Brooklyn’s flexible office space and coworking locations. Download today and get a head start on your travel plans!

CloudVOxWUN Brooklyn City Guide

Download Brooklyn City Guide

If you have any questions, would like to learn more about the resources CloudVO provides to partners, and/or information about the products by WUN Systems, please contact us at

About CloudVO

CloudVO is the umbrella brand of Cloud Officing Corp, headquartered in San Francisco, California. CloudVO’s mission is to provide comprehensive virtual office, coworking and meeting room solutions to professionals under a Workplace-as-a-Service™ model. CloudVO operates the and e-commerce sites and grants preferential access to day offices, coworking space, and professional meeting rooms over 650 locations worldwide for distributed workers on a subscription or a pay-per-use basis.

When to Charge (or not) for Meeting Rooms?

Update: 2019 Meeting Room White Paper is now available.

One of the key elements of the value proposition of shared office spaces is to provide collaborative space and meeting rooms to their members. This blog post will explore what we believe are the best practices for workspace providers to monetize access to meeting space.

Do Not Charge for Informal Collaborative Space on a Pay-Per-Use Basis

One of the tenets of coworking is to build a closely knit community of professionals that often interact in unplanned ways to maximize serendipity. Although convenience and privacy are more central to the value proposition of serviced offices, community curation is critical to their success as well. Note that in this article, we are using the terms “Serviced Office” and “Business Center” interchangeably.

Semi-private informal meeting spaces in the coworking area and/or by the break room of a business center are very desirable amenities to encourage instantaneous meetings without encroaching on the privacy of other members doing concentrated work.

Trying to monetize this kind of informal space (e.g. comfy couch, chairs, stools, or even meeting tables in open space) on a pay-per-use basis would be an undesirable barrier to accomplishing community bonding goals, not to mention in some cases, life changing serendipitous moments. Access to that kind of space should be part of the privilege of membership. If the space is heavily used, then day pass and virtual office users may be barred access from it, or else be charged a premium for it, as they are only peripherally involved with the community.

However, in general we like to discourage access restrictions to this kind of space, even to visitors, as today’s virtual office or meeting room user may become tomorrow’s full time member. In our experience, few virtual office or “walk in” visitors turn out to be heavy users of that kind of informal collaborative space anyway.

Charge Everyone for Access to Formal Private Meeting Rooms

Some operators include several hours of access to private meeting rooms as part of the privilege of membership. This is especially true for private office users whose monthly rent or membership fees are considerably higher than the virtual office or coworking passes.

Five to ten years ago, it was a common practice for serviced office space operators to think that the primary function of the meeting room was to serve full time office clients. Many provided a generous package of free access to the meeting rooms, 16 hours per month and sometimes more.

That practice is disappearing, and most operators are monetizing their day offices and meeting rooms aggressively. They learned that the contribution of a healthy meeting room business can be very significant to their business model both financially and also in terms of filling the pipeline of future full time members.

CloudVO Meeting Room Utilization by Type of Users
CloudVO Meeting Room Utilization by Type of Users

We believe that the best practice for operators is to offer no more than 4 hours of free access to formal meeting rooms as part of a full time user package. Many provide no free hours at all but offer meaningful discounts to full time members as a privilege of membership (e.g. 10-25%). Regus provides full time clients with free access to meeting rooms that is a function of how much money the clients spend every month. This typically accounts for just 1 or 2 free hours of a medium size meeting room. Pacific Workplaces (based in Northern California, with 15 locations) offer 4 hours of free access to their standard full time office members, a 50% reduction from what they provided less than 5 years ago and a 75% reduction from 10 years ago.

This trend towards charging for usage of private meeting room while not charging for the usage of informal meeting space makes sense when realizing that the ‘utility’ associated with a formal professional meeting is typically significantly higher than the ‘utility’ associated with informal meeting space. Another way to say this is that there is so much invested in a formal meeting that gathers 5, 6 or more people, in terms of everyone’s opportunity cost to be in the meeting, that the cost of the actual meeting space becomes a small % of the collective investment made to attend the meeting.

Think of a sales pitch or a fund raising pitch to busy third parties that cannot afford to be encumbered by technology glitches or a beer bust breaking out in the middle of the meeting.

Hence it makes sense for the operator to reflect that value in how he or she charges for the space, and to get a significant ROI on that meeting room space investment.

The space charged on a pay-per-use basis needs to be private, professional, with plenty of bandwidth, wireless access, and standard presentation equipment (flat screen with Apple TV or HDMI cable). That, along with the dedication of the meeting room space, is an expensive investment by the operator. The good news is, with the proper plan, that space should be the most profitable line of business for the operator as shown in the Expected Revenue Graph per meeting room size we explained in a a recent webinar on meeting room pricing.

Potential Revenue per Meeting Room Type - US Average
Potential Revenue per Room Type – US Average

Provide Meeting Room Choices

In that same webinar, we highlighted the importance of having several meeting rooms of different sizes in your inventory (1 or 2 day offices, 1 or 2 medium size rooms and one large room as a minimum). We touched on regional differences. We also explained how distributors, resellers, and other partners can quickly help develop a meeting room business with new, unique visitors, generating very high revenue per square foot and desirable traffic to also feed new memberships. Please refer to the webinar and to the associated White Paper on meeting room pricing and check our Resource Center with other similar goodies for operators.

Bundle Plans

Monetization of meeting room can come in several ways, including charging hourly rates, with or without discounts, deploying an e-commerce platform on your web site to enable real time booking of meeting rooms and charging user credit cards, leveraging partners like to expand your marketing reach, but also by providing well thought out bundles of meeting room hours.

Bundles should always be priced as a function of expected usage, in a statistical sense, based on data analysis of your pool of meeting room users. Hours should expire every month. If the operator follows these two principles well, the bundles can be priced at very attractive levels, and with minimum advertising, the meeting room revenue will increase quickly.

If you are starting your operation, use the CloudVO data as a meaningful starting point. For example, our experience of the average use of a 16-hour bundle (with no carry over of unused hours) is 3.9 hours/month when the bundle is an add-on to an existing package (e.g. Mail plan or Full time user); and 6.9 when it is a stand alone package. Price your bundles accordingly, not as if everyone were going to use all their hours. They don’t, and the light users typically more than pay for the occasional heavy user. Most people end up consuming fewer hours than they initially projected. This is particularly true if you package a 16-hour bundle with a 3-month minimum contract, which we recommend.

Upload your center information on our CloudVO portal, and we will automatically populate our e-commerce sites, and, with your offering. Join LinkedIn Workspace-as-a-Service ™ group for more data driven discussions on our industry.

About CloudVO ™
CloudVO is the umbrella brand of Cloud Officing Corp, headquartered in San Francisco, California. CloudVO’s mission is to provide comprehensive virtual office, coworking and meeting room solutions to professionals under a Workplace-as-a-Service ™ model. CloudVO operates the and e-commerce sites and grants preferential access to day offices, coworking space, and professional meeting rooms at close to 500 locations worldwide for distributed workers on a subscription or a pay-per-use basis.

Significance of Jamie Russo’s Appointment as Leader of GWA

Jamie Russo, better than anyone, can build an Association that is commensurate with the growing importance our industry represents.

Image of Jamie Russo, newly appointed GWA President
Jame Russo

Last week, the Global Workspace Association (GWA) appointed Jamie Russo as its new Executive Director. This marks a tipping point for our Workspace-as-a-Service trade association for 5 main reasons.

Continue reading “Significance of Jamie Russo’s Appointment as Leader of GWA”

With WeWork’s Valuation at $10 billion, When Will The Workspace-as-a-Service Industry Reach $1 Trillion?

Is WeWork worth $10 billion? The answer is clearly yes for Fidelity Management & Research Co and other repeat investors who have invested $400 million in the company, making WeWork’s valuation roughly $10 billion, according to the Wall Street Journal and MorningStar.

Is WeWork worth $10 billion? The answer is clearly yes for Fidelity Management & Research Co and other repeat investors who have invested $400 million in the company, making WeWork’s valuation roughly $10 billion, according to the Wall Street Journal and MorningStar.

Ten billion is four times as much as Regus’ current market capitalization. When WeWork was valued at twice Regus’ just a few months ago, I wrote: “pretty impressive for a 4 year-old company that is surfing the coworking wave exceptionally well. We can only watch in awe.”

WeWork Cofounders
WeWork Cofounders, Miguel McKelvey and Adam Neumann
Now we need to look outside of the shared office industry to get a sense for the enormity of this achievement.

Ten billion is more than half the valuation of the largest publicly traded office landlord in the U.S., Boston Properties. When considering that WeWork leases 3.5 million squarefeet of office space, while Boston Properties owns 45 million square feet, it is clear that we are comparing apples and oranges, and that the main value here is not in bricks & mortar.

WeWork is not valued by its investors as a real estate firm. Rather, it is valued as a company that will disrupt traditional real estate. In the same way that Uber is not valued as a taxi company, but as a company that disrupts taxis. Or in the same way that AirBnB is not valued like a hotel, or like a simple reservation system, but as a company that disrupts the traditional lodging supply chain.

Landlords beware! Your world is changing.

The Morningstar article indicates that the WeWork valuation was about 100 times its operating income. This would suggest an operating profit of ~$100 million, or $28 per square foot per year. Most observers of the shared office space industry who have taken the trouble to reverse-engineer the WeWork operations, like myself, seriously doubt that they generate that much operating profit already.

This is why the story is even bigger than what the Wall Street Journal and Morningstar articles suggest. We believe the WeWork investors’ bet is a bet on a long-term model, with no expectation of achieving massive profitability any time soon.

WeWork Golden Gate
WeWork San Francisco – Golden Gate
We also believe that whether they will prove to be right or wrong, investors in WeWork have done their homework. Do not think, like I have heard some suggest, that this fundraising success is just the result of a good PR campaign, where naïve or lazy investors fell for smoke & mirrors. It would be way too simple.

Instead, it is the sign of a fundamental belief by these investors that the traditional office space is on a verge of a major disruption, the scale of which may even exceed what we have seen in the worlds of AirBnB and Uber and a belief that WeWork is well positioned to take advantage of this disruption.

We agree with this belief, particularly the first part of it. The disruptive value proposition of the sharing economy is real and the shared office space industry is one of the most logical and most valuable implementations of the sharing economy. This is true for coworking, as well as for other flavors of the Workspace-as-a-Service ™ industry that focus on convenience such as Virtual Offices or Proworking. Office Business Centers have a role to play in this change as well, particularly as their model evolves towards hybrid private offices and coworking space, with more focus on curating their communities.

On the other hand, we do not believe that WeWork could ever achieve a monopoly on the shared office space industry. That’s where the comparison with players in other sectors of the sharing economy ends. That’s where $10 billion represents a more significant leap of faith than we would be willing to make (even though we are believers!). Whereas Uber and Airbnb can build a credible case that “the winner takes all”, such won’t be the case in the shared office space. The barriers to entry are not that hard to overcome and users desires for spaces and types of communities will remain diverse.

WeWork is not a market place. It is a workplace provider. It only represents one of the many flavors that users want. Other providers will be successful proposing different flavors, in a large scale. Regus and now WeWork have shown the path.

In that sense, Starbucks is a better analogy to understand where WeWork may end up, if successful. Starbucks is the strongest, largest, most successful coffee shop company in the world. It is ubiquitous. But it does not have a monopoly. There are others, big and small. In the process Starbucks has helped change the way people drink coffee and it has raised the traffic to coffee shops, particularly their own. They also pushed out some of the local coffee shops that often –quite frankly- were not that great. But many local coffee shops, with good cofffe and personality, managed not only to survive but also to thrive.

WeWork Boston
WeWork Boston
We believe the same will happen to the Workspace-as-a-Service ™ industry. We believe that WeWork is only one of the several franchises that will establish their names in the industry. Meanwhile, WeWork, like Regus before them, greatly helps raise awareness of the shared office space, to the benefit of all operators, large and small. We believe investors have other ways to tap into this opportunity than to bet on a $10 billion valuation for a marginally profitable company. Other serious contenders are emerging, at less scary valuation levels and with possibly safer business models.

In the end-state, the traditional office space world will be significantly disrupted, but landlords who will ally themselves with Workspace-as-a-Service ™ operators to help evolve their space offering can take advantage of this massive change too.
Finally, we do believe that it is only a matter of time for the shared office space industry to reach a $1 trillion valuation, which is still a fraction of the entire commercial real estate space valuation. Give us a little bit more time for a prediction as to when. To be continued…

Author: Laurent Dhollande, CloudVO CEO

A Coworking Safari

On July 9, 2014, we asked 27 CloudVO associates to spend their entire day in a coworking place and to share their experience on Yammer real time. This article presents a summary of some of the raw observations made by our group on that coworking safari day, without interpretation or judgment.


The safari was designed to increase our organization’s knowledge of the coworking landscape. Fifty six percent (56%) of the participants had never coworked previously. The rule was for all participants to check in a location that promotes itself online as “coworking,” pay for a day pass, and share his or her experience and observations throughout the day via a moderated discussion forum on Yammer. Most of the discussions were structured – the moderator sent questions to the group throughout the day every ½ hour or so – but the participants also engaged in impromptu and highly interactive online conversations throughout the day. All data reported in this article was strictly based on those field observations.


The group checked-in 26 different coworking places in California and Nevada:

  • In 17 different cities
  • 16 locations were in the San Francisco Bay Area
  • 5 were in the Sacramento area
  • 4 were in other California areas (including LA & San Diego areas)
  • 1 location was in Reno, Nevada.

For the most part, participants picked locations close to their home or place of work. Since the majority were CloudVO employees, it is no surprise that the observations were skewed to Northern California, where the company main offices are located.

The vast majority of the operations visited by our group were dedicated coworking operations, with names like Hacker Dojo, NextSpace, The Port, The Hub, SandBox, Comerge, Enerspace, Urban Hive, San Leandro Coworking, Reno Collective, SpherePad, Hacker Lab, LapTop Lounge, ThinkHouse, Sillicon Valley Pad, Get Smartworkplaces, Sattelite, Comerge. One operation was a coworking place specifically designed for legal professionals (Thirty33 Legal Suites). Two locations advertised themselves as coworking places but were effectively touchdown space for professionals (e.g. MediaPod, with Courtyard by Marriott). The majority of the operations were for-profit operations, focused solely on coworking, but at least one was a non-profit operation, managed by and for its members.

Capacity & Usage

Half of the coworking places were small, with less than 40 coworking seat capacity, but 30% had more than 80 open coworking seats. Close to 40% of the locations offered private offices (ranging from 5 to 20 private offices). Most had collaborative space. Two-thirds provided private or semi-private conference rooms, ranging from 1 to 6 meeting rooms per location. 

Distributio of Coworking Seat Capacity Number of Users at Peak Time


Whereas the majority of the coworkers on our safari day seemed to fall in the 31 to 39 years old age group, all ages were represented, including Millenials, Gen Y, Gen X, and Boomers. 

Population Age Breakdown


Day Pass prices ranged from $10 to $75, with $25 as the median rate. A few locations offered free passes to “test drive” the coworking places. These free pass opportunities were not factored into our statistics.

The median monthly membership, with unlimited access was $295, also with a wide range from $79 to $475 per month. Many operators offer ten-day or five-day access at reduced prices. Dedicated desks, where users often leave their monitor, ranged from $300 to $550 with a median rate at $433/month. 

Published Prices


While a few of the smaller locations seemed to have spotty internet connections, most provided decent but not exceptional Internet connectivity. More surprisingly, only half of the locations seemed to provide some form of network printing. When available, printing was often free of charge.

Internet Connection Speed


Whereas community events are said to be the critical fabric of their place by most coworking operators, our observers could find events prominently posted in only 58% of the locations.

What really struck our safari participants is that the coworking locations were places to get work done. The image of informality some coworking places promote, with folks lounging on a couch with a beer on hand and a laptop on the knees, were no where to be seen. What the group observed instead were studious, library-style, work environments, where folks are by and large respectful of each other’s space and sound privacy. For example, most folks while making cell phone calls are careful not to do this in a way that disturbs other coworkers.

Coffee and beverage were very simple for the most part –no luxury!- but seemed to achieve their purpose.

Sound Level

Coffee Rating

Coworking Ambiance

Rate Your Coworking Experience

Join us for ‘Workspace-as-a-Service Safari Day’ in the Spring of 2015.

We would like to engage our entire industry in a Workspace-as-a-Service Safari Day in the spring of 2015. Let’s cover 100+ cities worldwide! Take one day out of your busy schedule to join our global field trip and in the process:

  • Help gather incredibly valuable data and help understand our changing industry.
  • Gain deep insights into the operations of other players in your space.
  • Enjoy the highly interactive format and benefit from the experience of hundreds of other participants in real time.

Here is how we would like to organize that day:

  • If you are a business center operator then check into a nearby coworking place or incubator for the day and offer other participants of the Safari a flat $40 rate to check into a day office at your center for that same day.
  • If you are a coworking operator, check into a nearby business center day office or an incubator and offer participants of the Safari a regular day pass at your center, not to exceed $40 for that day.
  • If you work for an incubator, check into a nearby business center day office or a coworking space for the day and offer participants of the Safari your regular coworking day pass at regular cost, not to exceed $40 for the day.

If you are interested in participating in the Spring 2015 World Workspace-as-a-Service Safari Day, please fill the following form.

We anticipate requesting participating operators to cap their Coworking Day Pass (coworking location), or Day Office Pass (Business Centers) at $40 max for any participants in the safari.

First Name

Last Name

Company Name

Your Email

Phone Number

Enter Address

Your Main Activity

For more information, consult our Workspace Provider Resource Center. Join our Workplace-as-a-Service ™ LinkedIN Discussion Group for more data-driven discussions with our community of workspace providers, one chewable data-bite at a time.

CloudVO ™ Team

HappyDesk Powers Pacific Workplaces and Boosts CloudTouchdown ™ Real Time Capabilities

Press Release | For Immediate Release

Boca Raton, Florida, September 09, 2014

HappyDesk, the only complete enterprise software solution for shared spaces with features including e-commerce, billing, CRM, and automated proposals and CloudVO ™, the manager of the CloudTouchdown ™ network and a global provider of virtual office solutions and touchdown space for mobile workers, announce today that Pacific Workplaces, an operator of on-demand workplaces with 15 locations in California, is using the CloudTouchdown-enabled HappyDesk platform for e-commerce and meeting room reservations.

“We are pleased that Pacific Workplaces is able to utilize HappyDesk to power its web site e-commerce capabilities and real time booking of meeting rooms,” said Dorthy Bright, President and cofounder of HappyDesk. It is yet another HappyDesk endorsement by a quality player in the Workspace-as-a-Service industry.”

“I am delighted with the performance of the HappyDesk platform,” said Scott Chambers, COO of Pacific Workplaces. “We are selling quite a few Virtual Offices online on our web site thanks to the HappyDesk white site, which is great. But I am especially pleased with the HappyDesk meeting room booking features, which make our calendar accessible real time to CloudTouchdown ™ and users, while keeping us in control of our clients.”

Laurent Dhollande, CEO of CloudVO ™ added: “This announcement speaks to the HappyDesk technology leadership in our industry. They have already achieved state-of-the-art functionality with a plug & play platform that is easy for operators to use and to embed into their own web site. I particularly appreciate that they are deploying significant resources for making HappyDesk fully compatible with the CloudTouchdown ™ program. The combination of independent Workspace-as-a-Service ™ operators + HappyDesk + CloudTouchdown ™ is now a potent combination.”

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About HappyDesk
Happy Desk LogoHappyDesk‘s Sharing-space-as-a-service (Saas) software platform was created with a singular purpose – to transform the way shared spaces are sold, accessed and serviced. Space providers leverage HappyDesk’s white label e-commerce, CRM, billing, proposal, door access and marketplace to increase engagement. The result: providers enjoy satisfied clients, increased revenue and reduced administrative time and cost. Seekers rely on HappyDesk because of the endless amount of shared space options they can search and reserve. With hundreds of providers across four continents, direct engagement between provider and end-user has never been so easy or transparent.

About CloudVO ™
CloudVO LogoCloudVO ™ is the umbrella brand of Cloud Officing Corp, headquartered in Palo Alto, California. CloudVO’s mission is to provide comprehensive virtual office and meeting room solutions to mobile workers and telecommuters under a Workplace-as-a-Service ™ model. CloudVO ™ operates the CloudTouchdown ™ network that grant preferential access to day offices and meeting rooms at 450 locations worldwide for distributed workers under a pay-per-need model.

About Pacific Workplaces
Pacific Workplaces LogoPacific Workplaces (Pac: for short) are great places to work, with a wide range of part-time and full-time furnished office spaces including virtual offices, private offices, and mini-suites, in a shared infrastructure environment, with curated communities that maximize networking opportunities and serendipity. Members have access to meeting rooms, coworking areas, business lounges, VoIP telephony, unified messaging, answering services, IT support, admin support, and an online legal library, under a pay-per-need hosted model [pac] refers to as Workplace-as-a-Service ™. All [pac] centers are operated by PBC Management LLC.

Kim Seipel
(415) 230-5300