Co-working giant WeWork could face challenges in the event of a downturn, according to a survey of NREI ( NREI ) readers. At the time, we primarily served start-ups and freelancers. The majority ( 39.6% ) of respondents thought demand for co-working space in the U.S. would continue to grow in the next 12 months , but 39.4% thought WeWork could face substantial challenges in a downturn. Respondents cited the ease of copying WeWork 's business model and the difference between its own long-term leases with landlords and its short-term subleases with clients among potential risks. However, a WeWork spokesperson said they expect more businesses to turn to flexible space during a downturn.
Co-working giant WeWork could face challenges in the event of a downturn, according to a survey of NREI ( NREI ) readers. The majority ( 39.6% ) of respondents thought demand for co-working space in the U.S. would continue to grow in the next 12 months , but 39.4% thought WeWork could face substantial challenges in a downturn. Respondents cited the ease of copying WeWork 's business model and the difference between its own long-term leases with landlords and its short-term subleases with clients among potential risks. However, a WeWork spokesperson said they expect more businesses to turn to flexible space during a downturn.