Personally I think WeWork is pretty exposed to any kind of economic downturn as most of their customers are burning cheap VC money. If half those companies were serious about getting profitable they'd go somewhere else with half the amenities at a quarter of the price.
There aren’t places like this with short term leases. You either get expensive month-to-month (or slightly cheaper year to year) or you get a cheap 5-10 year lease.
If you are not established enough to take a 5 year lease, then wework (and their competitors, of which there are many) make a lot of financial sense, especially for the flexibility — e.g. if you downsize, rent goes down accordingly in 1 month. No “cheap” lease has this feature.
Also, WeWork is cheap compared to prices Regus used to charge 5 years ago; I would assume Regus did respond to the price pressure, but I haven’t checked.
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Personally I think WeWork is pretty exposed to any kind of economic downturn as most of their customers are burning cheap VC money. If half those companies were serious about getting profitable they'd go somewhere else with half the amenities at a quarter of the price.
There aren’t places like this with short term leases. You either get expensive month-to-month (or slightly cheaper year to year) or you get a cheap 5-10 year lease.
If you are not established enough to take a 5 year lease, then wework (and their competitors, of which there are many) make a lot of financial sense, especially for the flexibility — e.g. if you downsize, rent goes down accordingly in 1 month. No “cheap” lease has this feature.
Also, WeWork is cheap compared to prices Regus used to charge 5 years ago; I would assume Regus did respond to the price pressure, but I haven’t checked.