Co-working giant WeWork could face challenges in the event of a downturn, according to a survey of National Real Estate Investor (NREI) readers. The majority (39.4%) of respondents thought demand for co-working space in the US would continue to grow in the next year, but 39.6% 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. WeWork is only surviving for two reasons: they are able to continually raise equity from gullible investors and they are living off 12 months free rent in new leases.” In addition, nearly half (54.2%) said they were not confident that WeWork’s management team had enough experience or expertise to run their business.
Co-working giant WeWork could face challenges in the event of a downturn, according to a survey of National Real Estate Investor (NREI) readers. The majority (39.4%) of respondents thought demand for co-working space in the US would continue to grow in the next year, but 39.6% 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. In addition, nearly half (54.2%) said they were not confident that WeWork’s management team had enough experience or expertise to run their business.