WeWork Acquires SpaceIQ To Equip Itself With Space Planning Tools For Its Growing Enterprise Customer Base
On the 30th of July 2019, WeWork, a global co-working office provider, announced that it had acquired SpaceIQ, a Californian space and workplace management software vendor, for an undisclosed sum. Prior to the acquisition, WeWork already leveraged SpaceIQ to track utilization and employee desk allocations at its offices used by its own staff in London, New York and San Francisco. WeWork will completely integrate SpaceIQ into its technology offering. This purchase is the latest in a series of acquisitions by WeWork intended to build out its ability to continuously monitor and optimize workplace layouts and service delivery. Earlier this year, WeWork acquired Wi-Fi usage monitoring start-up Euclid. In 2018 it acquired conference room and space-booking innovator Teem, and in 2016 it acquired visitor management vendor Welkio.
Why did WeWork target SpaceIQ for acquisition? Its chief technology officer, Shiva Rajaraman, singled out three capabilities. 1) SpaceIQ’s portfolio analytics functionality offers clear visualizations and data summaries, breaking down, for example, occupancy levels by location as well as the number of staff members allocated, assigned and unassigned at each site. 2) SpaceIQ’s restacking functionality enables users to test out different departmental seating configurations across building floor levels. 3) SpaceIQ’s move management module enables facility managers to assign staff to new desks via drag and drop, facilitating speedy relocations. SpaceIQ received strong scores in all three in our recent benchmark report.
WeWork needs these three capabilities as they are highly valuable for enterprise customers with large real estate portfolios. WeWork enterprise customers (each comprising over 1,000 employees) currently make up 40% of its membership, up from 20% two years ago. In addition to using its pre-existing capabilities for workplace management, such as visitor management, space booking and Wi-Fi monitoring, WeWork will use SpaceIQ to help its enterprise customers optimize their space planning. If a large organization is looking to downsize or find spare capacity for new staff, access to a dashboard with insights into its portfolio’s usage levels is the right place to start. Once an organization decides to make changes to its portfolio, it will naturally have to restack (or reshuffle) seating plans to accommodate these changes. Finally, leveraging software with move management workflows minimizes the disruption caused by relocations.
The space and workplace management software market is growing 14% a year, and will size at $1 billion as early as 2021. As with other recent acquisitions in this market, WeWork’s decision to purchase SpaceIQ is therefore timely. It will create a comprehensive offering for customers looking to maximize their space usage via access to robust insights into how building occupants actually use their buildings. This can lead to millions in operational savings per year via consolidated portfolios, time savings for staff in workplaces with less friction over meeting room bookings and workplace layouts that match how occupants really interact with the office environment. The acquisition will also help to establish stronger connections with large corporates, enabling WeWork to work with them on optimizing SpaceIQ’s space planning offering and build forward-looking solutions for the wider market.
If you would like to find out more about this booming software market, register for the upcoming Verdantix webinar on How To Select The Right Space And Workplace Management Solution, taking place on Thursday 12th September 2019.