1. The New Economics of Real Estate Justin SegalJohn WilsonJeff JohnsonJohn Gallander Boxer PropertyPaladin Capital GroupLiquidSpaceEquity Commonwealth

2. How is WeWork valued at $10 billion? What did they do to get to this?

4. Numbers to Consider 2014 Regus acquires Evans Easyspace, then sells to Bridges Ventures for £84m ($134M) 2014 WeWork raises $355M from JP Morgan & VCs at $5B valuation 2015 Regus acquires Abby Executive Suites 2015 WeWork raises $400M from Fidelity @ $10B valuation

5. From GWA 2015 Financial Study Best performance is in fastest growing: Coworking “Coworking spaces are experiencing explosive growth.” There are now more coworking units than business centers being built in North America Search for word “disruptive”: “no results found”

6. Interesting Trend Six metro areas own 80% of US flex supply space* The same six regions enjoy 78% of US venture funding* *CBRE Research Report: Americas Office 7.22.2015

7. For Startups, Not Just Space

8. How is WeWork Valued at $10 Billion? Addressable Market Beyond the Current Product Set Business Performance and Credibility Technology Network Play

9. Addressable Market… 34% of US workers (50m) work independently, 60% by 2020. 20% of independent workers (10m) are millennial. “Corporate Workplace Services” target the much larger market of (40m) corporate mobile and independent workers ages 30-55.

10. Beyond the Current Product Set… One such product extension, as has been noted in media reports, is their ongoing investment in “WeLive” micro apartments serving the urbanized, millennial customer base. We Live Crystal City DC and 110 wall street - this year...October and November...

11. Business Performance Location liquidity - Pre-sold before opening in most locations Predictable pipeline of new locations Rising per member revenue Supportive community, curated services, space when you need it… Productivity - Conference rooms, Telephone, Printing Wellness - TriNet, Momofuku, Fitist Efficiency - General Assembly, Mycheck, Axiom Growth - Ink, Shopify, Amazon Webservices Partnerships driving a rise in service revenue Membership beyond space - Accelerated growth of total members e.g. both Commons members and Space members

12. Technology Networks Network Orchestrators - These companies create a network of peers in which the participants interact and share in the value creation. They may sell products or services, build relationships, share advice, give reviews, collaborate, co-create and more. Examples include eBay, Red Hat, and Visa, Uber, Tripadvisor, Airbnb…30-40X as a technology network.

13. For traditional business centers that don’t see themselves as community based, collaborator incubators, how can they leverage their relationship with their landlord?

14. TRADITIONAL LANDLORD WORKSPACE OPERATOR FLEXIBILITY & CREDIT BASIC SERVICES INTERPLAY & OPPORTUNITY TRADITIONAL SPACE NEEDS SPACESERVICE [ NULL ] SOPHISTICATED SERVICES [SOMETHING] LEASE SOMEHOW DYNAMIC DESIRES

15. “NEEDY”

16. “WANTY”

19. DATA CONTENT DELIVERY FRONT-END PRODUCTS FULFILLMENT CUSTOMERS

20. ON SITE STAFF PROGRAMMING SUPPORT SERVICES CONNECTIVIT Y SPACE MEMBER INFO OFFERS PROMOTION PURCHASING BUSINESS SERVICES EDUCATION NETWORKING ART INSTALLATIONS CUSTOMER EVENTS TELEPHONY INTERNET WIFI MANAGEMENT TECHNOLOGY SWING SPACE MEETING SPACE CAFE / CASUAL SPACE PARTY SPACE SPECIALTY SPACE EVENT PLANNING CONCIERGE COMMUNITY MANAGEMENT CUSTOMER RELATIONS COMMUNCATIONS CUSTOMER INSIGHTS VIRTUAL OFFICE

21. Questions ???