[albahk]

WeWork (or any flexible space provider like Regus etc) provides a way for companies to avoid large ($) and long fixed lease commitments by taking shorter term flexible commitments, and they pay a premium for that.

Why would a company do that? Well, the same reason companies pay by the minute for cloud servers - to more accurately match their demand for office space/server resources.

When the economy tanks or other uncertainties face a company, the first thing to get the chop are big long leases for new office space with upfront capital investment on fitouts. So, a prudent CFO is LESS likely to sign a traditional lease and instead go to wework for a year-to-year commitment while they ride out the economic turmoil.

In addition, if the CFO or management see potential layoffs coming, they are even more likely to take up flexible space so when layoffs happen, they can also shed the office space.

I think during a downturn in the economy is when flexible office shines as a prudent option for businesses.

The press seems to focus on the free coffee/beer to position flexible office as a premium or luxury product and use the flawed logic that when the economy falters, a “luxury” coworking space will be the first thing that gets cut from a company’s budget.