Is WeWork Co-Founder Adam Neumann Back In The Coworking Game?

Adam Neumann, the famously charismatic co-founder of WeWork Inc., still sees potential in coworking. Neuman tried to buy back WeWork several months ago but was unable to raise the necessary funds, Now he many not need to; he's slowly building out a new competitor to the company he built. 

The new concept is called Workflow. Neumann’s WeWork as chronicled through several documentaries and the series “WeCrashed,” was a famously freewheeling experience with kombucha and beer on tap. Workflow is designed to be the grown-up version of the original coworking brand. Workflow will still provide flexible office space but it will be more upscale and will be inside residential buildings that Neumann's new company, Flow owns. 

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Founded in 2010, WeWork was one of the fastest-growing venture capital unicorns, taking out leases all around the world and becoming the top tenant in many cities. While Neumann was still with the company in 2019, WeWork had a valuation of $47 billion. After preparing for an initial public offering and a disastrous S-1 filing that showed just how much money the company was losing, Neumann left. SoftBank’s Vision Fund, which had provided the company with $10 billion, eventually had to write down the value of its investment. It went public via SPAC in 2021 and later filed for bankruptcy. 

His former company floundered but Neumann bounced back. In 2022, famed venture capital firm Andreessen Horowitz invested $350 million in Flow, his second attempt at building a real estate empire with residential buildings. This was the largest check the company had ever written and a solid gesture of faith in Neumann's abilities as an entrepreneur. Earlier this year, one of the two buildings in Nashville, where Flow is a minority equity owner, faced financial difficulties. Flow never managed the property at 2010 West End in Nashville. Flow also owns four properties in Miami, Fort Lauderdale, and Atlanta. The company is also planning three buildings in Riyadh, Saudi Arabia. 

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Flow has opened up sales for its first condo development in downtown Miami. Flow House at Miami Worldcenter is being constructed with sustainably sourced materials. The 40-story tower is expected to be delivered next year. Prices for the 466-unit building start at $450,000 for a studio apartment. The amenities include access to Workflow coworking spaces and use of a podcast room. The building also will have a pool, restaurant, gym, and pet play area.

Neumann’s comments on Flow House are similar to his original vision for the We brand. “We are excited to build upon our vision and bring the full Flow experience, which is rooted in community and a sense of belonging, to anyone looking for a better experience from their permanent residence,” he said in a press release.  

As Bloomberg reported, Neumann previously said he would not get back into the office space business. WeWork's struggles have shown that while there is a need for coworking spaces, it may not be as big a business as the company's initial success seemed to indicate. 

Workflow is less of a full business and more of an offshoot of his emerging residential brand. This time around, Neumann says he is learning from his past mistakes and taking things more slowly. The success or failure of the condo sales may end up being a judgment on the success of  his second act. 

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