Regus WeWork opens its first location in San Diego
WeWork, the flexible co-working space provider, has opened its first San Diego location at 600 B St. downtown. The 88,273 sq ft space is based over six floors and is housed in the same building as The San Diego Union Tribune. The facility can accommodate around 1,700 start-ups, freelancers and companies, with 200 already signed up for occupancy. The rental agreements range from $45 to $3,900 per month. WeWork has already opened over 100 offices in 32 cities across 12 countries, and is valued at $16.9bn.

WeWork, the nation’s largest coworking landlord, officially opened its first San Diego outlet this week, which for now is the New York City-based company’s largest single location in California.

WeWork occupies six floors at 600 B St. (John Gibbins / San Diego Union-Tribune )

The six-floor, 88,273-square-foot location is at 600 B St. downtown, the same building that The San Diego Union-Tribune moved to earlier this year. The terms and lease value were not disclosed.

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About 1,700 startup business founders, free-lancers and big-company representatives are expected to occupy Floors three though eight over the next few months with about 200 already signed up, a company spokesman said. Month-to-month rents range from $45 to $3,900 and contracts can be canceled on short notice.

“”We’re helping to make San Diego one of the leading global hubs for innovation and entrepreneurship, and that’s one of the reasons we’re very, very excited we’re here,” said Jon Slavet, WeWork’s general manager for western states, at the Thursday launch.

Mayor Kevin Faulconer, left, and Jon Slavet, western regional manager for WeWork, chat at Thursday’s official opening of the company’s downtown headquarters. (Roger Showley/U-T )

With Mayor Kevin Faulconer and Downtown San Diego Partnership CEO Kris Michell standing by, Slavet said WeWork sees itself as being part of a “resurgence” of interest in living and working in urban centers.

“Cities in America, like San Diego, are attracting millennials and other creators and that’s a core part of what WeWork is all about,” he said.

Faulconer said more than 400 startups are being formed annually in San Diego and Michell said WeWork likely will attract many of them to its space.

All WeWork private offices are enclosed in glass to encourage networking while muffling most sounds from neighbors. (John Gibbins / San Diego Union-Tribune )

Unique San Diego icons appear throughout the WeWork space, such as this sculpture of a bit of local ocean lore. (John Gibbins /U-T )

Coworking has been growing internationally as an alternative way to run businesses and fill office space, especially since the 2008 recession led to millions of office worker layoffs. Many became consultants or started their own firms.

But instead of working out of a corner of their apartments or signing long-term leases, they rent desks by the month in warehouses, vacant office tower floors and storefronts and share overhead costs for conference rooms, kitchenettes, office supplies and services. The costs can be lower than in standard offices and the sharing concept promotes networking and partnering.

WeWork, founded in 2010 and privately held, has raised $1.7 billion in private capital, opened more than 100 offices in 32 cities and 12 countries and signed up more than 80,000 tenants, called “members.” The company has been valued at $16.9 billion — more than most big commercial real estate companies with much more space. Its 37-year-old CEO and cofounder, Adam Neumann, is said to be worth $2.5 billion, according to Forbes, making him the eighth richest American entrepreneur under 40.

San Diego has seen numerous coworking spaces open up all over the county, but WeWork is the largest such operation so far.

Featuring a hip design with San Diego flourishes — a plastic bust of fictional San Diego anchorman Ron Burgundy, a 3-foot statue of a flamingo and free Taco Tuesdays — the WeWork space offers a mix of open desk space, private offices and common areas with free beer, coffee and fruit water.

On tap beer is one of the amenities for WeWork members. (John Gibbins /U-T )

The entrance lobbies of the first two floors to be occupied so far are decorated with yellow and pink neon and inspirational greetings,”Get Stoked” and “Rise and Grind,” are painted in script on the walls.

An outdoor furnished deck is set to open on the third floor terrace in January where barbecues and mixers will take place regularly.

The first arrivals have yet to outfit their spaces with posters, fish tanks and company logos.

Gibran Huerta, left, and Rick Zazueta have a business at WeWork called “Lifestyle Group” that helps companies with branding through all kinds of media. They are sitting at a banquette in the third floor common area where WeWork members meet each over coffee and beer. (John Gibbins / San Diego Union-Tribune )

What’s more San Diego for WeWork to include in its space than a pink flamingo like those at the San Diego Zoo? (Roger Showley/U-T )

A puzzle on a WeWork table spells out the location of one of its newest city locations. (Roger Showley/U-T )

A plastic bust of the fictional anchorman, Ron Burgundy, sits unpretentiously on a coffee table in the WeWork space. (Roger Showley/U-T )

But most seem to fit a common Gen X-Gen Y stereotype — clean-cut, dressed in jeans and T-shirts, never far from their smartphones and laptops and exhibiting a fierce, goals-oriented work ethic that sees them working long into the night.

In her small, interior glass-enclosed office, Jenna Soard, 36, runs her 3-year-old company Launch Your Brand. She records videos and podcasts and conducts online classes on graphic design, brand strategy and web and logo development. But she also travels so often around the world to meet with clients that she considers herself a “nomadic entrepreneur.”

“Part of the reason why I wanted WeWork is because I didn’t want my office to sit empty (when traveling),” she said.

WeWork membership gives her access to the company’s other locations and when she returns home, she stays at Airbnbs downtown or commutes to her office on the Coaster from her mother’s home in Oceanside.

The WeWork vibe also suits her personal life: “Everybody here is very hip and nice and friendly.”

Russell Schneider, who owns a software company works on his laptop in the third floor common area of “WeWork.” (John Gibbins / San Diego Union-Tribune )

Neil Harris, director of technology at the FanDuel fantasy sports betting site, occupies a four-desk space with his brother, Cole, also a tech wiz. Their New York City-based, 350-person company is merging next year with the similarly sized DraftKings fantasy sports company. He said he moved to San Diego 12 years ago for the weather and surf and is married to the creative director at MJD Interactive. The couple live in Bay Park and have 9-month-old twin daughters.

“If you want to be professional and take yourself seriously, you should always have some sort of office,” said Harris, 34. “The companies that tend to be at WeWork are ‘real’ companies. I don’t want to take anything away from ‘non-real’ companies, but typically they (the established firms) are financially baked, they’re sound and have C-level guys in the company. They’ve done this and been around the block and maybe they’re a little older.”

WeWork offers a group health plan through TriNet, internet access and limited free printing services (120 black and white, 20 color per month) and frequent meetups and social gatherings. The rent does not include parking.

One of the first WeWork members to sign up was Sharon Jenks, CEO of the 6 Degrees business networking company. As a 66-year-old baby boomer and mother of four millennials, she thinks WeWorkers make ideal clients.

“The reality is millennials love to be in a community and network,” she said.

She currently counts 300 members who pay between $100 and $2,400 per year for her forums, mixers and other events. She has worked out an arrangement to host at least one event per month at the WeWork office that will be open to both WeWork and 6 Degrees members.

In addition to WeWork offices, the company has begun experimenting with “WeLive” apartments in Lower Manhattan and Arlington, Va., across the Potomac from Washington, D.C., where members can live and work in the same building. Rents start at $1,900 and $1,200 per month, respectively.

“The idea of WeLive is a beautiful place to live in a built-in community,” Slavet said.

In addition to serving the needs of workers, Slavet said WeWork also meets the needs of landlords with space to fill.

“We obviously work with top brokers to find buildings and work to fill buildings up,” he said. “We’re also a great solution for larger organizations and they are now beginning to understand that.”

Microsoft, Airbnb, Spotify, Salesforce and General Electric have taken space in WeWork rather than lease satellite locations on their own as a way to handle seasonal job spurts and special project assignments.

“If a company needs temporary space for 20, 50 or 100 people for six to 12 months, we’re a great solution for that,” Slavet said.

WeWork staff and members gather around the reception desk on the third floor. (John Gibbins / U-T )

WeWork membership levels

(Extra credits cost $25 each)

We Membership: $45 per month for networking and events and two credits toward use of an open desk or conference room.

Hot Desk: $300 per month for an unassigned workspace plus two credits.

Dedicated Desk: $450 for an assigned desk with a lockable filing cabinet plus five credits.

Private office: Starts at $630 for one-person space up to $3,900 for an eight-person desk and special rates for up to 100 desks; credits are issued at the rate of 12 per person.

Information: (619) 378-1471, Bstreet@wework.com

roger.showley@sduniontribune.com; (619) 293-1286; Twitter: @rogershowley