Definitely not a WeWork booster, but I think I can see the other side of these questions. > How does it factor in that they are leasing their buildings? Won't

Definitely not a WeWork booster, but I think I can see the other side of these questions. > How does it factor in that they are leasing their buildings? Won't their rents eventually go up, and won't they have to remodel all the time to keep up their hip/modern work spaces? All of this does matter, but per the OP may matter less than CAC + initial push into a market (brand-building etc.). Think of the cost to develop e.g. MS Word vs. the incremental cost to retain users (programmer salaries go up over time, they have to remodel the app ~annually, etc). If the WeWork model works in a market, they can buy buildings later (perhaps during a recession). > when a recession hits, it seems like the first offices a company closes has are the ones on a short-term lease at a co-working space I'm sure the other side of this argument goes something like the arguments against car ownership. Many companies won't have any long-term leases anywhere, will be more remote-friendly, etc. In fact some companies will choose to not re-up on long-term leases in favor of more flexible options like WeWork specifically because who wants to sign a long-term lease during a recession when visibility is poor?