WeWork has focused on maximizing utilization of their space but have not automated business processes.
Being design-led comes with a heavy depreciation overhead. The bigger issue is that when you have a business the size of WeWork that doesn’t cover its costs through its core business, it becomes a very big ship to turn around.
The only way for WeWork to get their business model up to par is to either increase the charge to their customers by a factor of two or three or restructure all of their leases.
3) WeWork very often claims that they are a lot like Amazon, claiming that once they grew their business to scale, they would make money.
WeWork, on the other hand, has scaled and acquired enormous liabilities without building for scale and automated.
Landlords are acquiring the capability to not only match but create a better offering than WeWork.
My view is that there will be a role for landlords to offer flexibility themselves and there will be a role for operators like WeWork, IWG, Servcorp and Industrious.