If they raise prices, someone else could locally open up a new coworking space with lower prices. The lack of advantage to costumers, which is your first point,

If they raise prices, someone else could locally open up a new coworking space with lower prices. The lack of advantage to costumers, which is your first point, means that customers go to the cheaper place. So the economics of scale (supposed that is a relevant factor) could provide WeWork with a higher profit margin, but to become dominant, they have to take a cut to this margin.