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>Moreover, SoftBank itself has been a big contributor to that high level of occupancy. The Japanese conglomerate and its subsidiaries take up about 20% of WeWork’s office space in Japan, the people said. Over the years, WeWork pushed its locations worldwide to attract corporate clients because those contracts are more lucrative and stable. But Japan had a higher proportion of enterprise customers from the start, beating the 40% global average.


It's a lot easier to be profitable when your owner buys 20+% of your services. Also easier to get more than 40% institutional customers when the boss puts his thumb on the scale for the first half of that...

>on the scale for the first half of that..

I think your math is wrong. The denominators vary for the different percents. (Edit: nope, mine was.)

Can you explain what I'm doing wrong?

Softbank buys 20% of their Japan space, so in order to get to 40+% they just need to find institutional investors for another 20+%? The denominator for both is "capacity at Japan office"

Never mind; my math was wrong.

It looks like they just need 25% of remaining office space to be institutional to hit that (20 of 80).

I think your math depends on all the office space being occupied (so that $total_customers == $office_space). Maybe that's what GP is pointing out.

That doesn't really affect your original point though.

Ah, you are correct. I think it actually strengthens my point, right?

If Softbank is renting 20% of space, and less than 100% of space is rented, then they count for more than 20% of the customer base being institutional.

Sounds right to me!

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