SaksWorks is also reportedly considering adding the spaces in Los Angeles, Seattle, Philadelphia and Boston. The new spaces will require redesign efforts to adapt them to office space—and Nelson is working with architects to add more natural light, greenery and artwork to make the spaces more inviting for workers. The changes bring to light the struggles of retail’s brick-and-mortar businesses. Consumers looked to e-commerce during the height of the COVID-19 pandemic, leaving many retailers in a lurch. For Hudson’s Bay, which not only owns big retailers but also the buildings they occupy, the struggles were even more apparent.
The deal is also beneficial to WeWork, which seeks growth without a massive lease liability. The co-working company told The WSJ that 70% of its new spaces in the future will be under a similar revenue-sharing model or other arrangements that avoid leases.