How many of them lived and worked there before that? How many of them are making the community around them better for this? Look, I work for startups, I'm not remotely out of this myself, but most startups create net-negative externalities on the places around them (I'd say that most create net-negative externalities societally, and I refuse to work for those, but that's a different kettle of fish.) It isn't "sad" that a countercultural and art-focused area doesn't want techbros milquetoasting the community and causing CoL spikes--even if that means they don't want me around, either.
Poor start-up founders! No wifi and cheap snacks for them. Instead, those spaces will be given to a non-profit donation platform and to an organization that supports children and young people in need.