[wongarsu]

Conversely while times are good startups are willing to pay premium for short term leases, either to expand quickly if times stay good or to go back to some garage if times get tough. The business model is essentialy similar to an insurance, they make money by taking on other people's risks.

Of course WeWork doesn't operate financially like this. The business model is sound in principle, but WeWork's execution seems ill conceived (except for the personal enrichment of the CEO).