WeWork says it has a $3 trillion market opportunity and has only signed up 0.2% of its potential customers. Here's why real estate experts say those numbers don't add up.

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A big part of WeWork's pitch to potential investors in its IPO is that it has a huge opportunity ahead. Experts say its much smaller than WeWork says.

Here's how WeWork answered the 5 biggest questions about its business — and why analysts are still worried about its upcoming IPO

WeWork operates its coworking spaces in 111 cities today, according to the document. But it plans to eventually offer office space in 280 cities around the world. WeWork estimates that there are 149 million workers in such professions in the cities in which it currently operates. It figures there are 255 million in the 280 cities it eventually wants to be in. About 527,000 people — or about 0.2% of that 255 million — work in a WeWork space today, the company said. Even in its most mature markets — New York and London — only about 1.2% of workers with desk jobs work in a WeWork space.

The company doesn't specifically list which industries or types of workers are included in its 255 million potential member estimate, so it's hard to know how accurate that number is in terms of the number of desk workers in the areas it plans to operate. WeWork spokesman Erin Clark declined to comment for this story or to provide more details on how the company defines its potential customers.

Even with specialized offerings, in which WeWork customizes entire floors of building for individual companies and handles the facilities management, its sub-leasing model isn't right for everyone.

 

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