WASHINGTON, DC–Japanese company SoftBank is reportedly considering a $3 billion investment in WeWork, according to a report in CNBC Sunday night, which cited unnamed sources.

The investment would consist of two tranches: an initial $2 billion primary tranche and then a secondary round of $1 billion, which could be upsized to $2 billion, according to the CNBC report.

A spokesperson for WeWork told GlobeSt.com that “we have no comment to make on this rumor.”

The investment, if it comes to pass, would value WeWork at $20 billion.

It would also have a profound impact on the office commercial real estate asset class, which is already in the process of recalibrating itself due to the co-working trend. JLL, for instance, sizes the US coworking industry at 27 million square feet and in many cities these companies — led by WeWork — are taking an increasing share of office absorption in markets around the US. Even in traditional office spaces, tenants are asking for WeWork-like configurations for better collaboration and internal communication.

JLL, in its report Shared Workspaces, predicts that the shared office sector will continue to grow over the next two to three years until the cycle slows. “Brand and reputation will ensure a certain level of success for the largest players, but strategic locations will also play a role in the success or failure of a share office provider,” the report says.

“The emergence of the new breed of coworking facilities – which WeWork has helped pioneer – has left a profound impact on the market, and these users have represented perhaps the greatest source of growth in an otherwise slow-but steady-demand environment,” JLL Research Director Scott Homa tells GlobeSt.com.

“Many users are drawn to the creative and collaborative nature of coworking locations, and WeWork has stood out as one of the most innovative in terms of its cool and edgy build-outs,” he continues. “This type of working environment fills a gap in the market.”

More than a gap in some places. In at least one city, Washington DC, the demand for co-working office space is now larger than what is in the supply pipeline.

WeWork Plus $3B

So …WeWork is big. And now, according to CNBC, it is about to get significantly bigger via a $3 billion infusion of capital. The question is, where and how will it grow.

Obviously, WeWill will invest in more locations. The question is, will it double down on the markets in which it is already present or open new offices in secondary and tertiary locations? “I would think both,” Greg Leisch, Senior Managing Director of Market Research for Newmark Grubb Knight Frank, tells GlobeSt.com.

“There is not a lot of evidence that the major markets in which they are already well established — New York, Washington DC for example — are saturated because their spaces lease up so well,” he says. “So they might open more spaces in these and other cities as well as expand into new areas.”

Also, expect WeWork to experiment with more innovation, Leisch said.

“Market leaders remain market leaders by innovating.”

WASHINGTON, DC–Japanese company SoftBank is reportedly considering a $3 billion investment in WeWork, according to a report in CNBC Sunday night, which cited unnamed sources.

The investment would consist of two tranches: an initial $2 billion primary tranche and then a secondary round of $1 billion, which could be upsized to $2 billion, according to the CNBC report.

A spokesperson for WeWork told GlobeSt.com that “we have no comment to make on this rumor.”

The investment, if it comes to pass, would value WeWork at $20 billion.

It would also have a profound impact on the office commercial real estate asset class, which is already in the process of recalibrating itself due to the co-working trend. JLL, for instance, sizes the US coworking industry at 27 million square feet and in many cities these companies — led by WeWork — are taking an increasing share of office absorption in markets around the US. Even in traditional office spaces, tenants are asking for WeWork-like configurations for better collaboration and internal communication.

JLL, in its report Shared Workspaces, predicts that the shared office sector will continue to grow over the next two to three years until the cycle slows. “Brand and reputation will ensure a certain level of success for the largest players, but strategic locations will also play a role in the success or failure of a share office provider,” the report says.

“The emergence of the new breed of coworking facilities – which WeWork has helped pioneer – has left a profound impact on the market, and these users have represented perhaps the greatest source of growth in an otherwise slow-but steady-demand environment,” JLL Research Director Scott Homa tells GlobeSt.com.

“Many users are drawn to the creative and collaborative nature of coworking locations, and WeWork has stood out as one of the most innovative in terms of its cool and edgy build-outs,” he continues. “This type of working environment fills a gap in the market.”

More than a gap in some places. In at least one city, Washington DC, the demand for co-working office space is now larger than what is in the supply pipeline.

WeWork Plus $3B

So …WeWork is big. And now, according to CNBC, it is about to get significantly bigger via a $3 billion infusion of capital. The question is, where and how will it grow.

Obviously, WeWill will invest in more locations. The question is, will it double down on the markets in which it is already present or open new offices in secondary and tertiary locations? “I would think both,” Greg Leisch, Senior Managing Director of Market Research for Newmark Grubb Knight Frank, tells GlobeSt.com.

“There is not a lot of evidence that the major markets in which they are already well established — New York, Washington DC for example — are saturated because their spaces lease up so well,” he says. “So they might open more spaces in these and other cities as well as expand into new areas.”

Also, expect WeWork to experiment with more innovation, Leisch said.

“Market leaders remain market leaders by innovating.”