Exercise 1: More WeWork as an Exercise
Lecture 5: WeWork Exercise
This exercise asks you to analyse and rewrite the next two paragraphs in the prospectus. Please mark terminology and jargon. Then try to rewrite the text in plain language. After you are done, compare your rewrite to the original. Comment on what you have discovered.
Note: “Mature locations” in the prospectus refers to office space that has been available to potential tenants for 24 months or more.
• We can prioritize growth within our existing pipeline. By focusing on our existing pipeline of locations, we would increase the percentage of our location pipeline comprised of mature locations. A larger percentage of mature locations allows us to avoid incurring future capital investments to build out new spaces or the initial expenses associated with driving member acquisition at new locations.
• We can control the speed of growth of our new locations. We believe decreasing our growth increases occupancy and provides us with price elasticity because of the limit on supply. We have seen this occur where we have strategically slowed growth in certain cities. For example, following the Brexit referendum, we temporarily slowed our growth in London, resulting in an incremental 10 percentage points of occupancy. We have since resumed more rapid growth in London. As of June 1, 2019, our occupancy in London was 93%.