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Speaker 1: I'm Charlie Pellett. Stocks are moving, price of oil declining today,
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Speaker 1: a Bloomberg Business Flash. Thank you very much. Charlie Pellows
Speaker 1: Love forty eight here in the West Coast is to
Speaker 1: forty eight on Wall Street. The following is from Bloomberg
Speaker 1: View Opinions in commentary from Bloomberg Columnus. I'm Francis Wilkinson,
Speaker 1: an editor for Bloomberg View. In April, President Trump said
Speaker 1: that Deferred Action for Childhood Arrivals two thousand twelve Obama
Speaker 1: program to protect undocumented Dreamer immigrants who arrived in the
Speaker 1: US as children was a quote very difficult subject for
Speaker 1: me unquote. It appears Trump was telling the truth. Last week,
Speaker 1: Trump's administration rescinded a twenty fourteen plan to grant work
Speaker 1: permits and reprieves from deportation to potentially more than four
Speaker 1: million parents of US citizens and green card holders. The
Speaker 1: plan had been stymied in court. Supporters of immigration restrictions
Speaker 1: couldn't help noticing, however, that once again Trump had failed
Speaker 1: to strip almost eight hundred thousand Dreamers of the legal
Speaker 1: protection they had won under Obama. Trump has renewed Dreamer
Speaker 1: work permits and even issued some new ones. Some immigration
Speaker 1: advocates suspect Trump fears that rescinding DOCCA would make political
Speaker 1: life too difficult for moderate Republicans. Others think it might
Speaker 1: be something more personal. Trump appears torn between a crude
Speaker 1: promise made to his political base and what looks very
Speaker 1: much like presidential pang of conscience. Imagine that I'm Francis Wilkinson,
Speaker 1: an editor for Bloomberg View. For more Bloomberg opinion in commentary,
Speaker 1: please go to Bloomberg View dot com. This has been
Speaker 1: Bloomberg View. I'm looking review commentaries can be heard every
Speaker 1: weekday at this time and also eleven forty eight all
Speaker 1: Wall Street Times. It's actually a company that began in
Speaker 1: Amsterdam is creating communities, working spaces where people can link
Speaker 1: up with others, share ideas, or have private spaces and
Speaker 1: meeting spaces. Let's talk about what this company is doing.
Speaker 1: And lucky for us we have the co founder and
Speaker 1: managing director Spaces, Martin ordeck ord Ink Lord Ink. Thank
Speaker 1: you you say that's so much more beautiful um based
Speaker 1: at Amsterdam in our Bloomberg eleven three oh studio pertain.
Speaker 1: Nice to have you here with us. I feel like
Speaker 1: what you guys are doing just plays into the bigger,
Speaker 1: broader thing that is going on in our society of
Speaker 1: sharing spaces, sharing cars, sharing homes. Tell us a little
Speaker 1: bit about your philosophy. The philosophy about the office change
Speaker 1: is that why when we started, wasn't there in office
Speaker 1: which delivered addit value, gave you energy that you grow
Speaker 1: as a person. That was the starting point of I
Speaker 1: want to go to an office where I really feel good.
Speaker 1: And one topic was the small midsized enterprises were not
Speaker 1: catered a well within the office industry. They were getting
Speaker 1: not good leases, no good environments, and couldn't invest in it.
Speaker 1: And we thought, there's only one brand in the world
Speaker 1: World Trade Center. We want to be become the new
Speaker 1: World Trade Center in the level of sharing spaces, and
Speaker 1: that was starting to eight. What is the good lease?
Speaker 1: A good lease that your your price is well affected
Speaker 1: to what you want to pay, but of course also
Speaker 1: that you can grow into a building, which is very
Speaker 1: important for companies who can grow or degrees. And in
Speaker 1: the current economy, you can't forecast how large or big
Speaker 1: you are the next year. You guys, and let me
Speaker 1: just give you a little bit of scope of your company.
Speaker 1: You've got your Europe or the your your Union, euroregion,
Speaker 1: Asia locations more than that fifteen or more than fifteen
Speaker 1: locations in the US in the last six months, and
Speaker 1: you've got plans to upen a hundred locations within the
Speaker 1: next eighteen months. What does it mean when you open
Speaker 1: a location? So are you leasing space that other than
Speaker 1: companies entrepreneurs can lease from you? Yes, in a way.
Speaker 1: What you do is you look for the right locations
Speaker 1: where the demographics and geographics are really good. The cities, cities,
Speaker 1: global cities. So I always say there's no comparison anymore
Speaker 1: into countries. There's comparison into cities. It's a city city economy.
Speaker 1: Every city is attracting the new kid on the blog,
Speaker 1: the new one who wants to make it in their
Speaker 1: own region. And for example, the competition between a Portland
Speaker 1: and New York and a Dallas is there. And for
Speaker 1: getting the right work environment for not only the startups
Speaker 1: and the scale up rules that corporates. Really good office
Speaker 1: environment is very important. Um, what are your what's your
Speaker 1: capacity like? And when? When? When do you know your
Speaker 1: new to open up a new facility in a in
Speaker 1: a town. We already have our business now. For example
Speaker 1: in Amerstam we started the first one with the sixty
Speaker 1: square feet and we were filled up within eight months.
Speaker 1: It was the day Lehman Brothers felt into October. This
Speaker 1: is a day. So there was a change in the
Speaker 1: turning point I think in our economy lines with the
Speaker 1: largest So the dae, yes you were you got full
Speaker 1: up on your That felt great? Yeah, I felt really great,
Speaker 1: and also the possessioning of the of delivering something which
Speaker 1: people feel proud about. I felt also when I came
Speaker 1: into Bloomberg, I said, wow, there's a right energy and
Speaker 1: I got the right interaction with the security. And this
Speaker 1: is what spaces is all about, is humanizing an environment
Speaker 1: to getting traction, getting dynamics and delivering added value and
Speaker 1: making connections to people so you can grow as a person.
Speaker 1: We always say, as a European Amsterdam based philosophy, we
Speaker 1: are very entrepreneurial. We're a bit rebellion. But the only
Speaker 1: thing we want is that you become better as a person.
Speaker 1: But we can't make your business. You walked the talk
Speaker 1: because you yourself have not had an office for some
Speaker 1: ten years and counting. So when somebody signs up police
Speaker 1: with you say it's an entrepreneur. They've got a vision,
Speaker 1: they've got an idea and they want to work on it.
Speaker 1: They need some space. Do they stay with you for
Speaker 1: a long time? Yes. The philosophy's retention. We believe in
Speaker 1: a long term relationship. I I always say, please don't
Speaker 1: take an office, but typically people still want to have
Speaker 1: an office. So I'm indeed working for ten years already
Speaker 1: not in an office, and it gives media energy did
Speaker 1: an an EMICs of feeling and seeing people. So we
Speaker 1: are you Airbnb or are you a landlord? We are
Speaker 1: Airbnb combined with a landlord. Do you have people who
Speaker 1: stay there for a long time? Absolutely? And how long?
Speaker 1: As an example, Uber came four years ago with one
Speaker 1: person and amster them and now we're going to grow
Speaker 1: and set a new office space and amster them and
Speaker 1: they will have one thousand employees. May combined with space
Speaker 1: is an Amazon. So do you have existing space or
Speaker 1: do you find them space combination? Often when we are
Speaker 1: in a way are the new disruptor into real estates.
Speaker 1: So we find space commoditized space. We deliver space surface
Speaker 1: space in a way our customers want and we believe
Speaker 1: that if they downsize, we will upset it to other customers.
Speaker 1: What's the disruption? Now? How are you doing it? Different
Speaker 1: from That's why I asked you, are you a landlorder?
Speaker 1: You are? The disruption is, of course, is that traditionally
Speaker 1: real estate is about yielding and loan to value, creating
Speaker 1: value by selling the loans of selling the real estate,
Speaker 1: and we trying to create a more cash out of
Speaker 1: a building by delivering all kinds of services other than
Speaker 1: only officers, such as meeting rooms, haircutters, dancing classes, yoga classes, coffee, restaurants,
Speaker 1: anything you see and act within this building we deliver also,
Speaker 1: but only in the sharing philosophy. So we can deliver
Speaker 1: a one person coffee exactly the same experience that you
Speaker 1: have here with maybe three thousand employees and uh in
Speaker 1: terms of what the customers are paying for us. This
Speaker 1: is the business model any different than things in us
Speaker 1: like we work now, and it's you know, the same.
Speaker 1: If you compare, for example, it's like the hotel industry.
Speaker 1: You have marriage, you have the Hilton, you have all
Speaker 1: those groups, and in the end it's a competition and
Speaker 1: the end it's also growing together too. In the extent
Speaker 1: of the new world of for example, we say a
Speaker 1: new world of working, but it's all the new world
Speaker 1: of sleeping. Traditionally, when we started, I think twenty years ago,
Speaker 1: you had rooms of forty forty four hundred square feet.
Speaker 1: Now you're about maybe one hundred square feet. So also
Speaker 1: the downside of hotel rooms become more optimized, so you
Speaker 1: share your living room together, and you go up for
Speaker 1: a great bed and a very good Internet and that's it.
Speaker 1: So every deal that you do you make money off
Speaker 1: of in the end of yes, yes, So it can
Speaker 1: be management deals, that can be participation deals, but also
Speaker 1: in very scarce environments like in Manhattan, you have to
Speaker 1: go conventional, but you have to believe that you have
Speaker 1: enough audience to sell an up sell to all kinds
Speaker 1: of companies and it can be scale. Ups can be
Speaker 1: corporate the demand and your typical customers at a small
Speaker 1: entrepreneur for example, in in Amstem as a reflection, we
Speaker 1: have Facebook, Twitter, HB have Payple, but they're starting with
Speaker 1: maybe five to eight people and growing to the business show.
Speaker 1: In the end, everybody can be in as me uh
Speaker 1: ten seconds. Based on what you're saying, what does it
Speaker 1: tell you about the global economy in terms of growth.
Speaker 1: The growth is that we are downsizing of what we need.
Speaker 1: But this is good for you. Martin Roarinding, he is
Speaker 1: co founder managing director at Space is based in Amsterdam.
Speaker 1: In our Bloomberg eleven three oh studio right here in
Speaker 1: New York City, you're listening to Bloomberg Markets