WeWork co-founder Adam Neumann's bare feet get a lot of airtime in the first few episodes of "WeCrashed," a new Apple+ limited series about the startup that he grew from one coworking location into a global powerhouse.
Jared Leto portrays Neumann as a fearless and eccentric leader grounded in an awareness that seemingly eluded the rest of society. He wanted to change office space by offering flexibility and a community to let white-collar workers become more productive and happier. And his penchant for not wearing shoes reflects his desire to lead a revolution against general norms.
The first episode focused on Neumann's business ventures before he founded WeWork in New York City in 2010. WeWork would later have a valuation that reached $47 billion under the notion it could be a high-tech unicorn. But it later scrapped plans for an initial public offering in 2019, and Neumann was ousted by the board.
I watched the initial episode with family members to gauge the reaction of those who don't work in commercial real estate. This week, I headed over to Avison Young's Dallas office to view the second and third episodes with Charlie Morris and Giovanni Palavicini, who are part of the firm's U.S. Flexible Office Solutions practice.
Warning to readers who haven't seen the episodes: You may want to avert your eyes now.
Neumann appears to be onto something back in those early days of New York-based WeWork, with "WeCrashed" reflecting the beginning of a still-evolving creative revolution in the way people work, a process that has shifted in the pandemic as many businesses try to decide what they — and their employees — want from an office.
"The employee has so much control right now over the real estate strategy of the future for any corporation, period," said Morris, the national leader for the practice, in an interview. "The company's executives may think they have control; they don't. People will leave if they have to adhere to dictates or mandates on how to perform when for the past two years you still had a record-breaking financial performance from almost every sector" with many staff members working remotely.
Employees no longer necessarily have to roll into the office, plug into a wall and make sure someone sees them working, said Palavicini, a principal in the firm's flexible solutions team.
"The question is: How do companies and executives adjust to the new world," Palavicini said. Companies that want everyone back in the office could end up with staff turnover, he added: "People will lose talent over those requirements."
The second episode, called "Masha Masha Masha," lays the groundwork for what would be Neumann's unconventional corporate governance approach by showing him marrying Rebekah Paltrow, who wore a nontraditional, gauzy, grape wedding dress. Rebekah, played by Anne Hathaway, decides to be an actress like her cousin Gwyneth Paltrow, but it leads to humiliation onstage with her portrayal of Masha in Anton Chekhov's play "Three Sisters." It's not until the third episode, called "Summer Camp," when Rebekah finds a better-fitting role: Neumann's wife, supporting him during WeWork's annual summer retreat.
As Rebekah finds her way into the spotlight, Neumann brings her onstage instead of his business partner, Miguel McKelvey, in a move that also hints at the power dynamic behind WeWork's leadership. Some takeaways:
- Signs on buildings are important. A New York commercial real estate executive offers Neumann some advice at one point: It's not about the views in a building, but who can see you. Neumann takes the advice to heart as he strong-arms a lease in Midtown Manhattan from some unwitting landlord after a night of drinks. WeWork's sign on the building is later seen on the skyline during a panel Neumann serves on — not wearing shoes — with JPMorgan Chase CEO Jamie Dimon in the audience. Morris and Palavicini say views aren't as relevant these days and it's more about offering an experience.
- Being backed by a flashy bank isn't necessary. Another piece of New York City real estate wisdom Neumann hears is that he needed a well-known bank to financially back WeWork. Morris and Palavicini say that's not true these days. They work with companies offering flexible office space that are backed by local and regional banks. "Everyone understands the market today," Morris said. "They bank with who they feel more comfortable doing business with and the banks can underwrite coworking."
- Security is an issue with office space. Neumann illustrates the lack of security tied to working at a busy coffee shop by swiping a laptop. Morris and Palavicini said this is a trend that hasn't changed, with companies still seeking ways to protect their information and intellectual property. To solve this, the brokers say, they expect demand for flexible office space to continue to surge because it helps a company's employees with flexibility and security.
Check back with CoStar News in coming days for a look at the fourth episode with another industry professional.