WEBVTT - Bloomberg Markets: Spaces Offering Dynamic Work Areas

0:00:00.600 --> 0:00:04.200
<v Speaker 1>Global business news twenty four hours a day at Bloomberg

0:00:04.240 --> 0:00:07.240
<v Speaker 1>dot Com, the radio, plus Blobile Lab and on your radio.

0:00:07.600 --> 0:00:11.560
<v Speaker 1>This is a Bloomberg Business Last bloom Bloomberg World Handquarters.

0:00:11.600 --> 0:00:15.880
<v Speaker 1>I'm Charlie Pellett. Stocks are moving, price of oil declining today,

0:00:15.920 --> 0:00:20.079
<v Speaker 1>West Texas Intermediate down two point two percent, slipping into

0:00:20.079 --> 0:00:23.440
<v Speaker 1>a bear market, down ninety seven cents of arrel forty three,

0:00:23.560 --> 0:00:27.080
<v Speaker 1>twenty three on w t I Gold down a dollar rated.

0:00:27.120 --> 0:00:30.280
<v Speaker 1>Beyonce to twelve forty four, down two tenths of one percent,

0:00:30.640 --> 0:00:34.120
<v Speaker 1>and has stacked down thirty six to sixty two O two,

0:00:34.479 --> 0:00:37.120
<v Speaker 1>pulling back from a record down six tenths of one percent.

0:00:37.400 --> 0:00:40.239
<v Speaker 1>SMP down twelve, a drop of five tenths of one

0:00:40.240 --> 0:00:43.600
<v Speaker 1>percent down, Industrials down thirty four, a drop there of

0:00:43.720 --> 0:00:46.960
<v Speaker 1>two tenths of one percent. I'm Charlie Pellett, and that's

0:00:47.000 --> 0:00:50.560
<v Speaker 1>a Bloomberg Business Flash. Thank you very much. Charlie Pellows

0:00:50.600 --> 0:00:52.040
<v Speaker 1>Love forty eight here in the West Coast is to

0:00:52.280 --> 0:00:56.880
<v Speaker 1>forty eight on Wall Street. The following is from Bloomberg

0:00:56.920 --> 0:01:01.360
<v Speaker 1>View Opinions in commentary from Bloomberg Columnus. I'm Francis Wilkinson,

0:01:01.480 --> 0:01:04.679
<v Speaker 1>an editor for Bloomberg View. In April, President Trump said

0:01:04.680 --> 0:01:08.440
<v Speaker 1>that Deferred Action for Childhood Arrivals two thousand twelve Obama

0:01:08.480 --> 0:01:11.959
<v Speaker 1>program to protect undocumented Dreamer immigrants who arrived in the

0:01:12.000 --> 0:01:15.240
<v Speaker 1>US as children was a quote very difficult subject for

0:01:15.319 --> 0:01:18.480
<v Speaker 1>me unquote. It appears Trump was telling the truth. Last week,

0:01:18.520 --> 0:01:22.199
<v Speaker 1>Trump's administration rescinded a twenty fourteen plan to grant work

0:01:22.240 --> 0:01:25.679
<v Speaker 1>permits and reprieves from deportation to potentially more than four

0:01:25.760 --> 0:01:29.280
<v Speaker 1>million parents of US citizens and green card holders. The

0:01:29.319 --> 0:01:32.959
<v Speaker 1>plan had been stymied in court. Supporters of immigration restrictions

0:01:32.959 --> 0:01:36.160
<v Speaker 1>couldn't help noticing, however, that once again Trump had failed

0:01:36.160 --> 0:01:39.120
<v Speaker 1>to strip almost eight hundred thousand Dreamers of the legal

0:01:39.160 --> 0:01:42.279
<v Speaker 1>protection they had won under Obama. Trump has renewed Dreamer

0:01:42.360 --> 0:01:45.640
<v Speaker 1>work permits and even issued some new ones. Some immigration

0:01:45.680 --> 0:01:49.280
<v Speaker 1>advocates suspect Trump fears that rescinding DOCCA would make political

0:01:49.320 --> 0:01:52.480
<v Speaker 1>life too difficult for moderate Republicans. Others think it might

0:01:52.480 --> 0:01:55.720
<v Speaker 1>be something more personal. Trump appears torn between a crude

0:01:55.760 --> 0:01:58.480
<v Speaker 1>promise made to his political base and what looks very

0:01:58.560 --> 0:02:03.040
<v Speaker 1>much like presidential pang of conscience. Imagine that I'm Francis Wilkinson,

0:02:03.160 --> 0:02:06.680
<v Speaker 1>an editor for Bloomberg View. For more Bloomberg opinion in commentary,

0:02:06.760 --> 0:02:09.760
<v Speaker 1>please go to Bloomberg View dot com. This has been

0:02:09.800 --> 0:02:13.240
<v Speaker 1>Bloomberg View. I'm looking review commentaries can be heard every

0:02:13.240 --> 0:02:17.240
<v Speaker 1>weekday at this time and also eleven forty eight all

0:02:17.280 --> 0:02:27.320
<v Speaker 1>Wall Street Times. It's actually a company that began in

0:02:27.440 --> 0:02:31.079
<v Speaker 1>Amsterdam is creating communities, working spaces where people can link

0:02:31.160 --> 0:02:33.640
<v Speaker 1>up with others, share ideas, or have private spaces and

0:02:33.680 --> 0:02:36.800
<v Speaker 1>meeting spaces. Let's talk about what this company is doing.

0:02:36.800 --> 0:02:38.360
<v Speaker 1>And lucky for us we have the co founder and

0:02:38.440 --> 0:02:43.600
<v Speaker 1>managing director Spaces, Martin ordeck ord Ink Lord Ink. Thank

0:02:43.639 --> 0:02:46.480
<v Speaker 1>you you say that's so much more beautiful um based

0:02:46.480 --> 0:02:49.560
<v Speaker 1>at Amsterdam in our Bloomberg eleven three oh studio pertain.

0:02:49.760 --> 0:02:51.480
<v Speaker 1>Nice to have you here with us. I feel like

0:02:51.520 --> 0:02:54.320
<v Speaker 1>what you guys are doing just plays into the bigger,

0:02:54.360 --> 0:02:57.000
<v Speaker 1>broader thing that is going on in our society of

0:02:57.400 --> 0:03:02.320
<v Speaker 1>sharing spaces, sharing cars, sharing homes. Tell us a little

0:03:02.320 --> 0:03:05.600
<v Speaker 1>bit about your philosophy. The philosophy about the office change

0:03:05.720 --> 0:03:08.680
<v Speaker 1>is that why when we started, wasn't there in office

0:03:08.800 --> 0:03:11.959
<v Speaker 1>which delivered addit value, gave you energy that you grow

0:03:12.000 --> 0:03:14.480
<v Speaker 1>as a person. That was the starting point of I

0:03:14.560 --> 0:03:16.880
<v Speaker 1>want to go to an office where I really feel good.

0:03:17.760 --> 0:03:21.680
<v Speaker 1>And one topic was the small midsized enterprises were not

0:03:21.720 --> 0:03:24.160
<v Speaker 1>catered a well within the office industry. They were getting

0:03:24.160 --> 0:03:28.160
<v Speaker 1>not good leases, no good environments, and couldn't invest in it.

0:03:28.160 --> 0:03:30.800
<v Speaker 1>And we thought, there's only one brand in the world

0:03:30.880 --> 0:03:33.239
<v Speaker 1>World Trade Center. We want to be become the new

0:03:33.240 --> 0:03:36.480
<v Speaker 1>World Trade Center in the level of sharing spaces, and

0:03:36.520 --> 0:03:39.600
<v Speaker 1>that was starting to eight. What is the good lease?

0:03:40.240 --> 0:03:42.800
<v Speaker 1>A good lease that your your price is well affected

0:03:42.800 --> 0:03:44.400
<v Speaker 1>to what you want to pay, but of course also

0:03:44.520 --> 0:03:47.040
<v Speaker 1>that you can grow into a building, which is very

0:03:47.040 --> 0:03:49.880
<v Speaker 1>important for companies who can grow or degrees. And in

0:03:49.920 --> 0:03:54.840
<v Speaker 1>the current economy, you can't forecast how large or big

0:03:54.880 --> 0:03:57.320
<v Speaker 1>you are the next year. You guys, and let me

0:03:57.320 --> 0:03:58.920
<v Speaker 1>just give you a little bit of scope of your company.

0:03:59.040 --> 0:04:02.520
<v Speaker 1>You've got your Europe or the your your Union, euroregion,

0:04:03.080 --> 0:04:08.000
<v Speaker 1>Asia locations more than that fifteen or more than fifteen

0:04:08.000 --> 0:04:09.720
<v Speaker 1>locations in the US in the last six months, and

0:04:09.720 --> 0:04:11.800
<v Speaker 1>you've got plans to upen a hundred locations within the

0:04:11.840 --> 0:04:14.440
<v Speaker 1>next eighteen months. What does it mean when you open

0:04:14.480 --> 0:04:17.200
<v Speaker 1>a location? So are you leasing space that other than

0:04:17.760 --> 0:04:21.160
<v Speaker 1>companies entrepreneurs can lease from you? Yes, in a way.

0:04:21.200 --> 0:04:23.040
<v Speaker 1>What you do is you look for the right locations

0:04:23.080 --> 0:04:27.520
<v Speaker 1>where the demographics and geographics are really good. The cities, cities,

0:04:27.720 --> 0:04:31.560
<v Speaker 1>global cities. So I always say there's no comparison anymore

0:04:31.600 --> 0:04:35.279
<v Speaker 1>into countries. There's comparison into cities. It's a city city economy.

0:04:35.360 --> 0:04:38.320
<v Speaker 1>Every city is attracting the new kid on the blog,

0:04:38.440 --> 0:04:40.800
<v Speaker 1>the new one who wants to make it in their

0:04:40.800 --> 0:04:43.919
<v Speaker 1>own region. And for example, the competition between a Portland

0:04:44.000 --> 0:04:47.120
<v Speaker 1>and New York and a Dallas is there. And for

0:04:47.240 --> 0:04:50.520
<v Speaker 1>getting the right work environment for not only the startups

0:04:50.560 --> 0:04:53.960
<v Speaker 1>and the scale up rules that corporates. Really good office

0:04:54.040 --> 0:04:57.719
<v Speaker 1>environment is very important. Um, what are your what's your

0:04:57.760 --> 0:04:59.800
<v Speaker 1>capacity like? And when? When? When do you know your

0:04:59.839 --> 0:05:01.680
<v Speaker 1>new to open up a new facility in a in

0:05:01.720 --> 0:05:04.360
<v Speaker 1>a town. We already have our business now. For example

0:05:04.360 --> 0:05:07.159
<v Speaker 1>in Amerstam we started the first one with the sixty

0:05:07.520 --> 0:05:10.159
<v Speaker 1>square feet and we were filled up within eight months.

0:05:10.240 --> 0:05:13.039
<v Speaker 1>It was the day Lehman Brothers felt into October. This

0:05:13.120 --> 0:05:14.800
<v Speaker 1>is a day. So there was a change in the

0:05:14.839 --> 0:05:17.599
<v Speaker 1>turning point I think in our economy lines with the

0:05:17.720 --> 0:05:23.520
<v Speaker 1>largest So the dae, yes you were you got full

0:05:23.640 --> 0:05:27.520
<v Speaker 1>up on your That felt great? Yeah, I felt really great,

0:05:27.560 --> 0:05:31.719
<v Speaker 1>and also the possessioning of the of delivering something which

0:05:32.160 --> 0:05:34.880
<v Speaker 1>people feel proud about. I felt also when I came

0:05:34.920 --> 0:05:37.520
<v Speaker 1>into Bloomberg, I said, wow, there's a right energy and

0:05:37.560 --> 0:05:40.400
<v Speaker 1>I got the right interaction with the security. And this

0:05:40.480 --> 0:05:43.760
<v Speaker 1>is what spaces is all about, is humanizing an environment

0:05:43.800 --> 0:05:47.320
<v Speaker 1>to getting traction, getting dynamics and delivering added value and

0:05:47.360 --> 0:05:51.080
<v Speaker 1>making connections to people so you can grow as a person.

0:05:51.200 --> 0:05:56.039
<v Speaker 1>We always say, as a European Amsterdam based philosophy, we

0:05:56.080 --> 0:05:58.760
<v Speaker 1>are very entrepreneurial. We're a bit rebellion. But the only

0:05:58.800 --> 0:06:01.800
<v Speaker 1>thing we want is that you become better as a person.

0:06:01.880 --> 0:06:04.160
<v Speaker 1>But we can't make your business. You walked the talk

0:06:04.160 --> 0:06:06.840
<v Speaker 1>because you yourself have not had an office for some

0:06:06.920 --> 0:06:10.480
<v Speaker 1>ten years and counting. So when somebody signs up police

0:06:10.520 --> 0:06:12.640
<v Speaker 1>with you say it's an entrepreneur. They've got a vision,

0:06:12.640 --> 0:06:14.000
<v Speaker 1>they've got an idea and they want to work on it.

0:06:14.040 --> 0:06:15.719
<v Speaker 1>They need some space. Do they stay with you for

0:06:15.760 --> 0:06:18.599
<v Speaker 1>a long time? Yes. The philosophy's retention. We believe in

0:06:18.600 --> 0:06:21.760
<v Speaker 1>a long term relationship. I I always say, please don't

0:06:21.760 --> 0:06:24.120
<v Speaker 1>take an office, but typically people still want to have

0:06:24.200 --> 0:06:26.760
<v Speaker 1>an office. So I'm indeed working for ten years already

0:06:26.800 --> 0:06:29.159
<v Speaker 1>not in an office, and it gives media energy did

0:06:29.240 --> 0:06:32.040
<v Speaker 1>an an EMICs of feeling and seeing people. So we

0:06:32.279 --> 0:06:35.680
<v Speaker 1>are you Airbnb or are you a landlord? We are

0:06:35.800 --> 0:06:39.640
<v Speaker 1>Airbnb combined with a landlord. Do you have people who

0:06:39.680 --> 0:06:41.920
<v Speaker 1>stay there for a long time? Absolutely? And how long?

0:06:42.080 --> 0:06:44.800
<v Speaker 1>As an example, Uber came four years ago with one

0:06:44.880 --> 0:06:47.840
<v Speaker 1>person and amster them and now we're going to grow

0:06:48.200 --> 0:06:51.080
<v Speaker 1>and set a new office space and amster them and

0:06:51.120 --> 0:06:55.320
<v Speaker 1>they will have one thousand employees. May combined with space

0:06:55.440 --> 0:06:58.160
<v Speaker 1>is an Amazon. So do you have existing space or

0:06:58.200 --> 0:07:01.680
<v Speaker 1>do you find them space combination? Often when we are

0:07:01.680 --> 0:07:04.919
<v Speaker 1>in a way are the new disruptor into real estates.

0:07:04.920 --> 0:07:08.800
<v Speaker 1>So we find space commoditized space. We deliver space surface

0:07:08.839 --> 0:07:11.880
<v Speaker 1>space in a way our customers want and we believe

0:07:12.000 --> 0:07:14.600
<v Speaker 1>that if they downsize, we will upset it to other customers.

0:07:14.720 --> 0:07:16.840
<v Speaker 1>What's the disruption? Now? How are you doing it? Different

0:07:16.880 --> 0:07:18.480
<v Speaker 1>from That's why I asked you, are you a landlorder?

0:07:18.520 --> 0:07:21.200
<v Speaker 1>You are? The disruption is, of course, is that traditionally

0:07:21.440 --> 0:07:24.080
<v Speaker 1>real estate is about yielding and loan to value, creating

0:07:24.160 --> 0:07:26.400
<v Speaker 1>value by selling the loans of selling the real estate,

0:07:26.480 --> 0:07:29.560
<v Speaker 1>and we trying to create a more cash out of

0:07:29.600 --> 0:07:32.360
<v Speaker 1>a building by delivering all kinds of services other than

0:07:32.680 --> 0:07:39.640
<v Speaker 1>only officers, such as meeting rooms, haircutters, dancing classes, yoga classes, coffee, restaurants,

0:07:39.720 --> 0:07:42.800
<v Speaker 1>anything you see and act within this building we deliver also,

0:07:43.000 --> 0:07:45.240
<v Speaker 1>but only in the sharing philosophy. So we can deliver

0:07:45.560 --> 0:07:48.560
<v Speaker 1>a one person coffee exactly the same experience that you

0:07:48.680 --> 0:07:52.240
<v Speaker 1>have here with maybe three thousand employees and uh in

0:07:52.440 --> 0:07:55.040
<v Speaker 1>terms of what the customers are paying for us. This

0:07:55.040 --> 0:07:57.680
<v Speaker 1>is the business model any different than things in us

0:07:57.720 --> 0:08:00.440
<v Speaker 1>like we work now, and it's you know, the same.

0:08:00.520 --> 0:08:02.800
<v Speaker 1>If you compare, for example, it's like the hotel industry.

0:08:02.840 --> 0:08:04.760
<v Speaker 1>You have marriage, you have the Hilton, you have all

0:08:04.800 --> 0:08:07.320
<v Speaker 1>those groups, and in the end it's a competition and

0:08:07.400 --> 0:08:09.760
<v Speaker 1>the end it's also growing together too. In the extent

0:08:09.920 --> 0:08:12.360
<v Speaker 1>of the new world of for example, we say a

0:08:12.440 --> 0:08:13.760
<v Speaker 1>new world of working, but it's all the new world

0:08:13.800 --> 0:08:16.600
<v Speaker 1>of sleeping. Traditionally, when we started, I think twenty years ago,

0:08:16.680 --> 0:08:19.400
<v Speaker 1>you had rooms of forty forty four hundred square feet.

0:08:19.560 --> 0:08:23.360
<v Speaker 1>Now you're about maybe one hundred square feet. So also

0:08:23.400 --> 0:08:25.880
<v Speaker 1>the downside of hotel rooms become more optimized, so you

0:08:26.040 --> 0:08:29.080
<v Speaker 1>share your living room together, and you go up for

0:08:29.160 --> 0:08:31.120
<v Speaker 1>a great bed and a very good Internet and that's it.

0:08:31.400 --> 0:08:34.120
<v Speaker 1>So every deal that you do you make money off

0:08:34.160 --> 0:08:36.360
<v Speaker 1>of in the end of yes, yes, So it can

0:08:36.520 --> 0:08:39.120
<v Speaker 1>be management deals, that can be participation deals, but also

0:08:39.200 --> 0:08:42.520
<v Speaker 1>in very scarce environments like in Manhattan, you have to

0:08:42.600 --> 0:08:45.199
<v Speaker 1>go conventional, but you have to believe that you have

0:08:45.440 --> 0:08:48.960
<v Speaker 1>enough audience to sell an up sell to all kinds

0:08:48.960 --> 0:08:50.520
<v Speaker 1>of companies and it can be scale. Ups can be

0:08:50.600 --> 0:08:53.280
<v Speaker 1>corporate the demand and your typical customers at a small

0:08:53.600 --> 0:08:57.199
<v Speaker 1>entrepreneur for example, in in Amstem as a reflection, we

0:08:57.360 --> 0:09:01.679
<v Speaker 1>have Facebook, Twitter, HB have Payple, but they're starting with

0:09:01.840 --> 0:09:04.080
<v Speaker 1>maybe five to eight people and growing to the business show.

0:09:04.120 --> 0:09:06.080
<v Speaker 1>In the end, everybody can be in as me uh

0:09:06.240 --> 0:09:07.880
<v Speaker 1>ten seconds. Based on what you're saying, what does it

0:09:07.920 --> 0:09:09.760
<v Speaker 1>tell you about the global economy in terms of growth.

0:09:10.679 --> 0:09:13.240
<v Speaker 1>The growth is that we are downsizing of what we need.

0:09:14.920 --> 0:09:19.839
<v Speaker 1>But this is good for you. Martin Roarinding, he is

0:09:19.880 --> 0:09:22.800
<v Speaker 1>co founder managing director at Space is based in Amsterdam.

0:09:22.880 --> 0:09:25.280
<v Speaker 1>In our Bloomberg eleven three oh studio right here in

0:09:25.320 --> 0:09:27.480
<v Speaker 1>New York City, you're listening to Bloomberg Markets